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Rex M &F, Sharon Hiner <br />Greeley Pit M-1977-151 <br />August 18, 2010 <br />Page 2 <br />The reclamation of the area will be done at the 3 to 1 ratio - 3 foot out and <br />1 foot down. <br />The existing 21.2 acre lake has withstood over 30 years with the last few years <br />having ski boats and water activities, surviving with no negative results. The <br />virgin materials have a 40 to 60 percent agregate to sand and a lot of 4 to 10 <br />inch cobble. The sand and gravel locks the cobble in place. The new area <br />should be simular, if not, we can add cobble. <br />This will end up being a ski lake when mining is completed. There will be lots <br />of sand beaches"with native grasses and trees for easy maintenance. There will <br />be a dike along the 40 acre lake until materials are processed and hauled out. <br />Hiner Construction owns the equipment necessary to complete dirt work and topsoiling <br />to keep the cost low. There is enough topsoil on site to complete the project. <br />Approximately 15,000„yards @$1.00 per yard $15,000.00 <br />Seed - approximately 9 acres $1,200.00 <br />Mulch and fertilizer $600.00 <br />Fuel/oil/grease for equipment $20,000.00 <br />Labor $7,500.00 <br />Total Reclamation costs $44,300.00 <br />R M Hiner Construction Company Inc has filed with the Division of Water Resources <br />and the State Engineers office for a well permit and a Substitue Water Supply <br />Plan for the Greeley Pit. Mr. Jared Dains, E.I. a Water Resource Engineer <br />with The Applegate Group, Inc. has been hired by Hiner's and is continuing <br />work on this project. <br />In regards to water shares for the exposed ground water, Hiner currently is <br />purchasing 1 and 1/2 shares to add to the already owned two 1/2 half shares <br />(1 share total). With the assistance of Jared, we will continue to purchase <br />more shares.to complete the water plan as required by the State. <br />I hope this information has enlightened you of our intentions for the Greeley <br />Pit. <br />Thanks! <br />Re gectful <br />Sharon A Hiner <br />enclosure