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In July of this year, GCC expanded the quarry sump to contain the volume of <br />runoff from Mining Years 1 through 5 as stated in the mining permit application. In addition <br />GCC has reconstructed the temporary berm on the south side of the quarry and will extend the <br />existing plant diversion ditch on the east side to prevent the inflow of stormwater from areas <br />outside of Mining Years 1 through 5. <br />2. Bonding Evaluation Update. On June 29, 2011 GCC submitted to DRMS an <br />application to amend the Permit to modify the Reclamation Plan and Reclamation Costs. This <br />application was based on a June 8, 2011 memorandum from the Pueblo County Department of <br />Planning and Development clarifying the Special Use Permit, which governs the operation of the <br />facility in the County. This memorandum clarifies that the approval of the special use permit <br />"effecitively changes the zoning of the subject property to specifically allow for the use(s) <br />identified in the permit." <br />GCC has published notices informing the public of the submission of the permit <br />application amendment. The notices were published in the Pueblo Chieftain on July 12 , July <br />17 July 24 and August 2 "d . A facility inspection was performed by Mr. Berhan Keffelew of <br />DRMS on August 15 and the public comment period ended on August 22" <br />5. Ground Water Monitoring. Five ground water monitoring wells have been <br />installed pursuant to the Mining Permit. These wells are identified as MWOO1A, MW002, <br />MW003, MW004 and MW005. MWOO1A, which was completed in the Codell Sandstone, and <br />MW005, which is a shallow well installed near the St. Charles River, have been determined to be <br />dry and have never produced enough water to sample. <br />DRMS has established numeric protection levels (NPL) for total dissolved solids, <br />sulfate, Radium -226 and Radium -228. According to the letter, GCC is to continue semi - annual <br />sampling and analysis of the ground water monitoring wells and to submit an annual report of the <br />results. GCC submitted its annual report for Calendar Year 2010 on January 3, 2011 <br />demonstrating that all sample concentrations were below DRMS NPLs. <br />Ground water monitoring for the first semi - annual period of 2011 was performed <br />on April 13, 2011. <br />D. COMPLIANCE WITH ALL EXISTING PERMITS AND AUTHORIZATIONS <br />GCC believes it is in compliance with all applicable requirements. <br />2 <br />