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July 23, 2012 <br />Mr. Berhan Keffelew <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman, Suite 215 <br />Denver, CO 80203 <br />RECEIVED <br />JUL 2 3 2012 <br />Division of Reclamation, <br />Mining & Safety <br />Subject: Amendment 3, M -77 -211 / Notice of Violation MV- 2009 -012 <br />Continental Materials Corporation, Transit Mix Aggregates, Castle Concrete <br />Pikeview Quarry <br />Dear Mr. Keffelew, <br />This letter and the attached reclamation and mining plan amendment (Amendment) are <br />provided on behalf of the permittee, Continental Materials Corporation (CMC), and the operator, <br />Castle Concrete Company (Castle)/Transit Mix Aggregates (TMA). This submittal is in <br />response to the Incomplete notice the Colorado Division of Reclamation, Mining and Safety <br />(Division) issued May 22, 2012, due to the identification of permit amendment as Confidential, <br />and the omission of calculations for the reclamation costs. This submittal in not Confidential <br />and the reclamation costs are included. In the intervening period, the mining and reclamation <br />plan changed modestly, to reflect a better representation of the fault. Additional permit area <br />increased from 3.5 acres to 4.46 acres to accommodate the need for supplemental acreage, <br />should the fault be further west than expected. This submittal includes expanded geotechnical <br />documentation in Exhibit 6.5. <br />Amendment 3 addresses the Corrective Action identified in Notice of Violation and Cease and <br />Desist Order MV-2009-012 issued 6/10/2009, and modified 7/7/2010 (the NOV). Consistent <br />with our understandings raised in the 5/13/2009 hearing regarding the NOV, this letter and the <br />Amendment are provided without any admission of wrongdoing to amicably resolve the <br />contested allegations addressed in the NOV. The Amendment addresses quarry stabilization to <br />meet performance standards of the Construction Materials Statutes and Regulations. The <br />original application and four copies of the application are attached. The application fee of <br />$2,229.00 was submitted on May 10, 2012, and accompanied the incorrectly designated <br />Amendment 4. <br />CMC /Castle/TMA have been actively engaged in geotechnical evaluations to address instability <br />at the site. The Colorado Division of Reclamation Mining and Safety (Division) has approved <br />several Technical Revisions to allow investigations at the site. <br />Technical Revision 12 — 4/7/09 Installation of 34 Leica Geosystems prisms <br />Technical Revision 13 — 5/19/09 CTL Thompson Slope Stability Evaluation <br />Technical Revision 14 - 1/14/10 Limited blasting of scarps in the southwestern portion of <br />quarry to accommodate monitoring activities <br />ANCHORAGE • BEIJING • BELLEVUE - BOISE • CHICAGO • DALLAS • DENVER • LOS ANGELES • MADISON • PALO ALTO <br />76019- 0001/LEGAL23614308.1 <br />PHOENIX • PORTLAND - SAN DIEGO - SAN FRANCISCO SEATTLE - SHANGHAI - WASHINGTON, D.C. <br />Perkins Coie LLP <br />Perkins <br />Coie <br />1900 Sixteenth Street , Suite 1400 <br />Denver, CO 80202 - 5 2 55 <br />PHONE: 303.291.2300 <br />FAX: 303.291.2400 <br />www.perkinscoie.com <br />