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Varra Companies, Inc. <br />Office of Special Projects <br />8120 Gage Street Frederick Colorado 80516 Telephone (970) 353-8310 Fax(970)353-4047 <br />material unless the operator can demonstrate sufficient topsoil is located <br />within the Dakolios Pit permit boundary. <br />B) Withdraw this Technical Revision and submit an amendment to the permit and <br />update the reclamation plan outlining the intended uses of Areas 1 and 3 and <br />to address the installation of the clay liners. <br />As discussed on the 9th, Varra Companies, Inc., will provide an <br />Amendment to address the specific matter of the agricultural fill areas and <br />the desired uses attending to them. The amendment will be submitted no <br />later than 21 January 2010, and by this commitment, any consideration for <br />the same, under this Technical Revision, is withdrawn. <br />Respective of the northwest pond liner, the leak test is underway, and <br />anticipated to be completed before year's end. The proper assurances of <br />this test will be provided to the Division no later than 21 January 2010. <br />All other aspects of concerns respective of commitment of waters is <br />addressed in item number 2, below. <br />Item #2 Clay liner of the Northwest Pond: <br />2) Prior to approval of this Technical Revision, please submit evidence from the <br />Office of the State Engineer that the Operator has committed sufficient <br />shares of water to the SEO to cover the augmentation plan for the northwest <br />pond. <br />As previously stated to better assure the Office: `The operator is blessed with <br />adequate water to assure the Colorado State Engineer Division of Water <br />Resources that it has sufficient water to commit, and will, commit to the <br />complete unlined state of the operations until the basins are lined.' <br />A letter will be obtained from the State Engineer to assure the Office of this <br />circumstance. This correspondence will be obtained and submitted to the Office <br />within those guidelines and timeframes afforded under general correspondence <br />from the Office of 30 April 2010 pertaining to `Mining Operations with Exposed <br />Ground Water.' <br />Varra Companies, Inc. correspondence to the Colorado Office of Mined Land Reclamation (Office) in reply to 2 <br />Office correspondence of 3 November 2010 - Dakolios Pit - M-1984-036.