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Mr. Michael A. Cunningham - May 25, 2011 <br />Page Two <br />of a joint obligee account had been completed. Thus, AGC considers this item to require no <br />further action. <br />Compliance Problem 3: The Permit Boundary Was Inadequately Marked. AGC, utilizing a <br />Colorado Registered Land Surveyor, has had the permit boundary re-surveyed, with completion <br />occurring on April 20, 2011. A copy of the survey documentation is attached (with a pdf version <br />to be sent this date via email), and AGC notes that all corner posts and regularly spaced <br />intervals were "permanently" field-staked with steel "T" posts, as indicated on the attached <br />figure. Thus, AGC considers this item to require no further action. <br />RE: DECEMBER 22. 2010 INSPECTION CORRECTIVE ACTION ITEMS <br />Compliance Problem 1-: An Unpermitted Dewatering Well (CM-4) Was Observed in the <br />Cash Mine Area. AGC, with the assistance of a retained consulting water engineer and <br />appropriate legal counsel, continues to pursue supplementary water augmentation rights <br />sufficient to support application for a permit to utilize the subject well. The DRMS-authorized <br />extended corrective action date of September 30, 2011 is duly noted. <br />Compliance Problem 2: The Cash 3?d Level Adit is Discharging Water From the Cash Mine <br />Pool. AGC, at this juncture, does not possess or otherwise control sufficient water rights to <br />commence the dewatering of the Cash Mine pool or implement any otherwise available <br />management option; however, AGC is diligently pursuing same (see Compliance Problem 1, <br />immediately above). Accordingly, AGC respectfully requests modification of the prior May 30, <br />2011 corrective action date to September 30, 2011 as this issue is directly related to and fully <br />dependent upon the procurement of necessary water rights. <br />AGC trusts that the foregoing is fully responsive to the identified corrective action requirements. <br />If it is determined by the Division that there are any further corrective action requirements, AGC <br />remains committed to ensuring that all any such items are properly addressed. If you have any <br />questions, please contact the undersigned directly at (303) 985-1521. <br />Sincerely, <br />J. M. BE & ASS CIA TES <br />J M. eck, P. E. <br />Prin al - Mining Engineer <br />(Consultant to AGC Resources, LLC) <br />Attachment - Survey Plot (Permit No. M1983-141) <br />Cc: S. Carter - BLM <br />P. C. Jones, P.E. - Sovereign Management Group, Ltd. <br />M. Montgomery - AGC