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%ARDON <br />TEEL LLC <br />December 21, 2011 <br />Dear Mr. Erickson, <br />MINING INDUSLNYCONSULTANTS 4 X <br />18050 COUNTY ROAD G • CoRTEZ. CO 81 521 • 9 MTOREARDONSTEEL.US <br />alb \ il f �� <br />Wally Erickson <br />DRMS, Durango Field Office <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />RE: <br />Response e to <br />Project NOI 12/13/11 letter tr i deficiency issues for the Oyama Tnn &I? and! sa e Y on <br />Thank you for taking the time to meet with me yesterday morning to discuss the Oyama Tunnel Exploration <br />Project Notice of Intent to Conduct Prospecting (NOI No. P- 2011 -032). The following numbered paragraphs <br />are based on our conversation at your office, and represent Running Sun Advisory Services LLC's (RSAS) <br />direct responses to the numbered paragraphs in your December 13, 2011 letter: <br />1. The long term post - exploration status of the affected lands under the NOI is intended to be preserved for <br />industrial use, which is allowed under Rule 3.1.1. The reclamation of the site will be completed in a <br />manner that will allow for industrial activities to take place, resulting in the preservation of the portal, the <br />sedimentation pond, and the waste rock pad. The portal has already been safeguarded as described in the <br />NOI, however should any damage occur to the locking gate during exploration activities, the portal will be <br />re- safeguarded by a lockable gate or impassible barrier following prospecting activities. After prospecting <br />is completed, the interior slopes of the sedimentation pond will be no greater than 3:1 (15 °) as required <br />under Rule 3.1.5(7). Also following prospecting activities, the waste rock pad slopes will be reduced to no <br />greater than 2 :1 (22.5 °) and covered with salvaged topsoil to the extent described in paragraph 4 below. <br />As described in the NOI, at the top of the waste rock slopes (which is also the outer edge of the top of the <br />waste rock pad), a stormwater berm will be constructed to enhance erosional resistance of the slopes <br />during storm events. <br />2. As per the definition of affected lands under Rule 1.1(4), the total acreage of the affected lands under the <br />NOI is 2.60 acres. This 2.60 acre boundary is provided on Figure A -3 of the NOI (labeled "Permit <br />Boundary') and includes the anticipated 0.58 acre addition to the present day waste rock pad. <br />3. Reclamation will consist of the items described in paragraph 2 above and paragraph 4 below, which will <br />all occur within the 2.60 acre permit boundary encompassing the affected lands. <br />4. The only new disturbance that would conceal presently exposed topsoil consists of the 0.58 acre addition <br />to the waste rock pad. Therefore, prior to placement of waste rock on the 0.58 acres, the unconsolidated <br />material (hereinafter referred to as "topsoil ") overlying bedrock will be salvaged to the extent practicable <br />and safeguarded in a long berm (hereinafter referred to as the "stockpile ") at the down - gradient (western) <br />edge of the permit boundary. Following prospecting activities, a 4 inch to 1 foot thick layer of topsoil will <br />be dragged up- gradient from the stockpile over the 2:1 slope and stormwater berm of the waste rock pad <br />(collectively referred to as the "slope/berm "). The amount of topsoil to be salvaged from the 0.58 acres is <br />unknown at this time, therefore the up- gradient drag of salvaged topsoil will only be performed to the <br />extent that the stockpile exists. If the stockpile is exhausted prior to covering the entire slope/berm, then <br />the remaining surfaces of the slope /berm will not be covered. If the stockpile exceeds the amount needed <br />to cover the slope/berm it will be flattened out to match the slopes of the waste rock pad. RSAS would <br />like to specify that under this reclamation plan, regardless of the amount of topsoil salvaged from the 0.58 <br />acres, the top surface of the waste rock pad will remain unconcealed and un- vegetated in order to support <br />the long term industrial use of the property. Seeding and other measures to ensure vegetative growth <br />within the topsoil will be performed as described in the NOT. <br />Page 1 of 2 <br />DEC 222011 <br />\Ulamation, <br />and Safety <br />DEC ���f <br />L.`r J !%it Ct Fiela „, <br />