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7 ?*A <br />April 26, 2011 <br />4. Jared Ebert <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />?VVI <br />Denver, CO 80203 <br />Re: Valco, Inc Permits M1977559, M1977560 M1977572 <br />Dear Mr. Ebert: <br />VALCO, INC. <br />CORPORATE OFFICE <br />12753 S Parker Road, <br />Suite # 203 <br />Parker, CO 80134 <br />(303) 248-3590 <br />W aft <br />APR Zc)/1 <br />Division of Reclamation, <br />Mining & Safety <br />Please accept this as Valco, Inc.'s response to the Division letter dated April 30, 2010 "RE: <br />/Mining Operations with Exposed Ground Water". <br />All three of these pits are under the same Substitute Water Supply Plan which expires May31, <br />2011. All three pits are currently inactive. No mining has occurred since November of 2009 <br />when the operations were sold to All-Rite Paving and Redi-Mix, Inc.. All-Rite did not assume <br />these permits. <br />Valco has completed the engineering on each pit location to determine the final configuration of <br />the reclaimed pits and the amount of permanent water surface that will remain. Bishop-Brogden <br />Associates, Inc. has completed a preliminary draft of a proposed extension of the SWSP. We <br />anticipate a meeting with the Division of Water Resources by the end of next week. By the end <br />of May Valco should have a clear idea of exactly what water will be needed and how the water - <br />rights we own will cover the permanent evaporation depletions. <br />We anticipate that we will be proposing Technical Revisions on each of the permits to comply <br />with DWR requirements. New reclamation cost estimates will be made with the bonding <br />addressed. <br />Please contact me with any questions. <br />Si erely, - - <br />Thomas E. Brubaker <br />President