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Sampling will be performed at each well on a quarterly basis, and logged in an auditable Company record. Ideally, <br />there should be no water detected, indicating that systems are working correctly. If water is encountered it could be <br />related to a potential problem or temporary saturation from a recent storm event. In either event, the DRMS requires <br />a report within five working days if water is encountered. This report must immediately provide the pH value and <br />the purged volume. Laboratory analysis should follow as soon as the results are attained from the lab. Metals to be <br />tested shall include: Al, As, Ba, Cd, Cr, Cu, Pb, Mn, Hg, Se, Ag, and Zn. If the testing indicates a dry result, this <br />data should be collected for reporting to the .DRMS in the amnia] reclamation report. <br />The following monitoring/sampling parameters shall be followed for each well: <br />I . Unlock and open security cap. <br />2. Insert a clean bailer-style sampler (nominally 0.5"-1.5" OD x 12"L) into the casing and lower via a clean, <br />nylon cord. <br />3. Let the sampler reside at the bottom of the casing (25') for at least 2 minutes. <br />4. Carefully pull the sampler back to the surface. <br />5. Label a new clean bottle and complete the report with the following data: <br />a. Date/time of sample <br />b. Location, Up- or Down-Gradient <br />c. Approx. depth of liquid level in bailer, in inches from bottom of borehole. <br />d. Purged volume <br />e. pH value to 1/10'h of a standard unit using a properly calibrated handheld pH meter <br />f. If none collected, record on report "Dry" <br />g. Sampler's signature <br />6. Pour any contents into the labeled, clean, plastic sampling bottle. <br />7. Procedure #246 shall be repeated three times as a purging procedure if water- is encountered. <br />a. The fourth bottle collected shall be submitted for sampling or, the last bottle taken if the well goes <br />dry during the purging sequence. <br />8. The sample report shall be recorded with the Venture Resources' office. <br />a. If water is encountered, the preliminary field report with pH value and purged volume shall be <br />submitted to the DRMS within five working days. <br />9. Any collected water will be forwarded to an independent analytical laboratory that can perform the <br />following test: Al, As, Ba, Cd, Cr, Cu, Pb, Mn, Hg, Se, Ag, and Zn metals -total concentration. <br />10. Returned lab results will be attached to the appropriate field report and maintained at the Venture <br />Resources' office. This data will be preserved for the entire life of the operations. <br />a. These test results shall also be immediately forwarded to DRMS upon receipt. <br />11. In the event that data is received indicating a problem, ie reported levels are higher than the baseline values <br />established in Exhibit C, operations shall be ordered CEASED until the problem can be identified and <br />corrected. <br />It shall be noted, the Colorado School of Mines owns over a dozen properties down-gradient of this proposed <br />operation. One of which, the Edgar Union Lode, contains three large dumps that are 350' downgrade from the <br />proposed Tailings Impoundment. Inorder to not be adversely impacted by the acid runoff from the CO School of <br />Mines' property, the aforementioned monitoring well will be the best monitoring point. <br />Biodegradable geotextile shall be pinned to the exposed surface face to minimize wind and/or stormwater erosion on <br />a as-needed basis. This will be done until permanent stabilization through revegetation and/or rip rap can be <br />installed. Permanent control measures will be installed in 10 feet phased increments (elevation height of one quarter <br />of a terrace or bench) which is estimated to occur every several months. This consists of covering the impoundment <br />area with a 6" blend of Class-A municipal bio-solids and topsoil. A biodegradable netting will then be applied to <br />prevent water and wind erosion. This application will augment the deposited solids for the establishment of soil <br />capable of supporting re-vegetation. <br />A grass seed mix has been developed specifically for this site through consultation with the Natural Resource <br />Conservation Service (see NRCS seed mix specification attached as an appendix to Exhibit D). This will be sowed <br />together with fertilization and irrigation until permanent vegetation is re-established. <br />Page 30 of 37