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4- <br />FLAG SAND & GRAVEL <br />1412.Road 311 <br />New Castle, CO 81647 <br />April 26, 2011 <br />Mr. Tony Waldron <br />Division of Reclamation, Mining & Safety <br />1313 Sherman St, #215 <br />Denver, CO 80203 <br />r <br />Dear Mr Waldron; <br />RE: /Mining operations with exposed ground water <br />Permit #VA-1981-202, Silt Pit <br />SC <br /> <br />RECEIVED <br />k(PR 28toll) <br />QVision of Reclamation, <br />Mining & Safety <br />Presented in this letter is our plan for addressing the exposed <br />groundwater issue at the above referenced mine based on the four (4) <br />options outlined in the Divisions letter dated April 30, 2010. <br />This mine has post 1981 groundwater exposed. All exposed <br />groundwater is covered by Well Permit (65385-F) and court approved <br />Augmentation Plan (Case 05CW278 & 06CW12 consolidated) that covers <br />evaporative losses from the lake, dust control water and loses due to <br />gravel processing at the mine. The well permit was issued on February <br />27, 2007. The augmentation plan was approved on January 23, 2008. <br />Our current Reclamation Plan calls for creating additional lake <br />area that is covered by the above referenced well permit and <br />Argumentation Plan. <br />We believe the information presented shows that this mine in <br />compliance with §37-90-137(11). If you have any questions or need <br />more information please call me. <br />Sincerely, <br />Flag Sand and Gravel <br />41 . <br />Fred Frei, President