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Please reference Exhibit D — Mining Plan, page D -3, last paragraph. As submitted to the Colorado <br />Division of Reclamation, Mining and Safety, the application is not acceptable to Reclamation and <br />we request additional design, engineering and /or regulatory permitting to address discharge into <br />Basin Creek. Of particular concern is the location of the fresh water and sediment ponds at the <br />northern end of the proposed gravel pit site at the edge of a slope which drops down to Basin <br />Creek. A failure of any of these ponds could result in a large flow of water with high levels of <br />sediment and turbidity into Basin Creek. Please also reference the corresponding letter of <br />comment to your office from the Animas- La Plata Operation, Maintenance and Replacement <br />Association dated June 16, 2011. <br />In summary, Reclamation assumes a neutral position with regard to development of the proposed <br />Animas Glacier Gravel Pit, subject to our comments and concerns to ensure compatibility between <br />the gravel pit and the Animas -La Plata Project. Again, thank you for the opportunity to review <br />and comment on the subject application. If you have any questions or need further information, <br />please contact me at 970 - 259 -1110 ext. 1004. <br />Sincerel <br />cc: Mr. Russell Howard <br />Animas -La Plata Operation, Maintenance, <br />and Replacement Association <br />103 Everett St. <br />Durango, CO 81303 <br />Mr. Stephen D. Taylor <br />Assistant United States Attorney <br />1225 Seventeenth Street, Suit 700 <br />Denver, CO 80202 <br />ell, Construction Engineer <br />ur Co Construction Office <br />