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Page 6 of 8 <br />In addition, the Division will include costs to comply with the Office of the State Engineers requirement <br />for out-of-priority groundwater depletions. The reclamation plan proposes 44.1 acres of open ground <br />water will remain after the site is reclaimed. Lafarge or the landowner must obtain a court approved <br />augmentation plan from the office of the State Engineer. The Division is required to set the financial <br />warranty at a level which reflects the actual current cost of fulfilling the conditions of the Reclamation <br />Plan per Rule 4.2.1(1). Therefore, without an augmentation plan in place the financial warranty must <br />be set at an amount which accounts for the exposed groundwater. The Division has identified several <br />options for determining the amount of the financial warranty. The Applicant must choose one of the <br />following options to be included in the financial warranty calculation: <br />a. Backfill all of the pits to two feet above the groundwater level. <br />b. Install a slurry wall or clay liner. <br />c. Provide the Division with documentation from SEO, which demonstrates the Applicant owns a <br />sufficient amount of shares of water to cover the evaporative losses from the exposed <br />groundwater and the said shares have been committed to the SEO should the financial warranty <br />forfeited and the permit revoked. <br />If the Applicant obtains an augmentation plan prior to final release, then the financial warranty will be <br />adjusted accordingly. <br />6.4.13 Exhibit M - Other Permits and Licenses <br />32. Please commit to providing the Division with of the approved permits and licenses required at the <br />Iverson Mine. <br />6.4.14 Exhibit N - Source of Legal Right to Enter <br />33. The Applicant submitted a draft road crossing license between Great Western Railway of Colorado, LLC <br />and Lafarge West, Inc. During the Pre-Operational inspection, Lafarge explained the completed road <br />crossing license with Great Western Railway would not be finalized until mining operations started at <br />the site. Please commit to finalizing and providing a copy of the license to the Division prior to <br />beginning mining activities at the site. <br />34. The "term" section on page 1, section 2 of the Gravel Property Lease with Mr. Timothy and Mrs. <br />Jeanne Iverson is not complete. Please provide a completed copy of the lease. <br />35. In section 7, item D of the lease with Mr. Timothy and Mrs. Jeanne Iverson the lease states, operations <br />will not occur immediately adjacent to (within 200 ft.) the existing residence on the Property without <br />Lessor's express consent. The applicant is proposing to mine within 145' of the residence in the mining <br />nlan. Please provide a Maned struCtUre agreement with Mr. and Mrs. Iverson to mine within the <br />proposed offset from their residence. <br />6