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Response: <br />We understand that the USFS has the ultimate authority on this project and that a reasonable and <br />appropriate bond will be required. <br />VIII. Operating Plan Acceptance <br />The bond will not be released until the Authorized officer has determined that the terms and conditions of <br />the reclamation plan have been satisfactorily completed. <br />Response: <br />It is understood that the bond will not be released until the Authorized Officer has determined <br />that the terms and conditions of the reclamation plan have been satisfactorily completed. <br />COMMENTS ON EXHIBITS: <br />We are uncertain as to the purpose or intent of some of the material in the Exhibits. Further, some of the <br />critical information is poorly legible. Exhibit is a compendium of `best management practices' regarding <br />storm water management from the California Best Management Practices Handbook. We are not sure <br />where, how and to what extent you specifically intend to implement these practices. Storm water <br />management and erosion control mitigation measures normally flow from the Forest Service ID Team and <br />are provided to the operator through the environmental analysis. <br />Response: <br />Since the drilling project is similar to a stormwater related project and since these have been <br />successfully addressed in the State of California through CalTrans (Division of California <br />Transportation) Best Management Practices (BMPs) we felt that these measures would be a good <br />starting point for managing water. CME, LLC has attempted to be pro-active in trying to <br />identify potential environmental impacts and offering proposed potential mitigation measures to <br />address potential environmental impacts. We do understand that the responsibility for <br />identifying mitigation measures and notifications lies with the USFS, and our proposals are only <br />suggestions until the USFS concurs or identifies additional or alternate mitigation measures. <br />B. Exhibit appears to be a legal description of the Enterprise # 15 and #I8 lode claims without any <br />proposed operational data plotted. <br />Response: <br />Exhibit B is a legal description of the lode claims #15 and #18 owned by CME, LLC along with <br />a map showing the extent of the claims. The purpose of including these in Exhibit B is to <br />illustrate the property ownership in the area of the project and that the project intends to only <br />explore on the claims owned by CME, LLC. The property information contained in this exhibit <br />is included in the operational plan so that it is clear that the exploration project is within Federal <br />lands. <br />Exhibit contains resolutions of the Mineral County commission regarding their position on certain land <br />access issues. <br />5