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Extraction and Reclamation Operations <br />Presently, Tract A is the area of active resource recovery, while plant operations and stockpiles occupy the majority of Tract B. The <br />affected lands, evident in the July 2006 aerial image, remain closely representative of the location as it is seen in 2009. The observed <br />differences are updated by graphical interpretations, as determined by field measurements and objective references on the ground, as <br />illustrated over the 2006 baseline aerial and attending data. <br />Activity in Tract C should be comparatively short lived. Operations will gain access into Tract C from an existing access point on the <br />northeast corner of the location as seen in the included aerial image. Two discharge points may be used individually or in tandem, <br />however, waters will exit near the newly designated DPC on the northeast corner as it drains into a lower existing pond whose waters <br />can be further detained and settled before being released by developed gates and drainages into the adjacent wet meadow, as <br />historically practiced. <br />Extraction will follow within 25± feet of the existing tandem wells, consistent with previously approved setbacks for this location. <br />The extracted area will be concurrently backfilled to 100± feet from the center of the well, comprising nearly 0.62± acres of fill. From <br />there the extraction will either follow the perimeter and sweep counterclockwise around the location, or else open up a gradually <br />increasing pit wall and work the site from the northeast to the southwest. Either method will follow with the use of bottom shale <br />material to establish 3H:1V finished slopes, and capped with a minimum of 0.5± feet of soil. <br />Soil will be stockpiles initially on the backfilled area and later utilized in an over the shoulder method to cap the completed basin <br />slopes remaining above water. With approximately 2.40± acres of above ground area requiring revegetation with the previously <br />approved seed mixture, approximately 1,936 cubic yards of soil will be required for completion of resoiling of affected lands <br />remaining above the anticipated static water level of 4785± feet. <br />Financial Warranty Determinations <br />Reclamation over the adjacent Tract A has progressed to a point where the planned activities for Tract C should be covered by the <br />resulting excess warranty coverage already in place for this permit and related approved activities. We will rely upon OMLR field <br />verification of this assertion. <br />Varra Companies, Inc. — Kurtz Resource Recovery and Land Development Project <br />Colorado Office of Mined Land Reclamation Permit M 1999 -006 - Technical Revision of 6 July 2011 <br />