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Paragraph 7. As a point of clarification, while the Division retains reclamation bond for <br />topsoil stockpiles 4, 7, and 8, the two sediment control ponds (001 and 002), and <br />sediment control system ditches, these features have all been reclaimed or approved for <br />retention in situ. The only remaining on-site reclamation obligation for the Carbon <br />Junction Mine is the reclamation or transfer of ownership of the drill holes 17-1, 94-1, <br />and 95-1. <br />BackfUling and Grading, Page 3 of 9, Paragraph 2. As discussed in my correspondence <br />of August 27, 2010, Oakridge Energy and I disagree with the Division's observations <br />regarding the crack at the North Pit and the "bulge" at the Previously Reclaimed Spoil <br />Area. <br />Hydrologic Balance, Page 3 of 9, Paragraphs 1 and 2. As a point of clarification, Pond <br />1 was backfilled, graded and topsoiled in November and December 2008, as was Pond <br />002, and the sediment control diversions adjacent to the ponds. <br />With regard to repair of the hole at the Carbon Junction channel, please see the above <br />discussion regarding completed repairs. <br />Hydrologic Balance, Page 4 of 9, Paragraph L It should be noted that the metal "T" <br />posts that identify the boundaries of the Carbon Junction Mine have been in place at the <br />area in question for at least five years. On October 6, 2010, I installed or replaced <br />Carbon Junction Mine Permit Boundary signs in the area in question. Not every "T" post <br />boundary marker has a sign, but the "T" posts are visible from each other. Several <br />Carbon Junction Mine Permit Boundary signs were added in the area north of the <br />Equipment Area, and at the entrance to the Equipment Area and Ewing #1 Mine permit <br />area. <br />Signs and Markers, Page S of 9. It should be noted that the metal "T" posts that identify <br />the boundaries of the Carbon Junction Mine have been in place at the area in question for <br />at least five years. On October 6, 2010, I installed or replaced Carbon Junction Mine <br />Permit Boundary signs in the area in question. Not every "T" post boundary marker has <br />a sign, but the "T" posts are visible from each other. <br />If you have any questions please contact me at your convenience. <br />Sincerely, <br />"6z;A? <br />Michael S. Savage <br />Principal <br />C: Chi Chi Ray, Oakridge Energy, Inc. <br />Bryan Duff, Goff Engineering & Surveying <br />Carbon Junction Mine Page 3 <br />CORM5 September 15, 2010 and October 6,2010 Inspection Responses