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Loloff Mine <br />TR -0 1 Adequacy Letter <br />Page 4 of 6 <br />Division with a copy of the monthly groundwater levels as part of the annual report for the <br />site. <br />20. Please provide a copy of the agreement between Loloff Construction and Broken Arrow <br />Investments, LLC, operator of the Derr Pit, allowing Loloff to monitor groundwater depths in <br />the Derr Pit monitoring wells. <br />21. Division staff is reviewing the hydrologic impact model prepared for the Loloff Mine. An <br />additional adequacy review letter may follow pertaining to the hydrologic impact model <br />submitted with the revision. <br />Rule 6.4.12 Exhibit L - Reclamation Costs <br />22. The proposed mining and reclamation plans for the site includes dewatering of the pit, the <br />bond calculation for the site must include costs related to dewatering of the pit to account <br />for the costs incurred by the State of Colorado if water had to be removed from the pit in <br />order to establish the proper reclaimed slopes along the pit wall. Please include an <br />estimate for the dewatering activities in the financial warranty estimate. <br />23. The Division will estimate the cost to reclaim the site based on the information submitted <br />once the Applicant addresses the concerns noted in this letter. <br />24. The Loloff Mine is not in compliance with the Division's letter dated April 30, 2010 <br />regarding the long -term groundwater augmentation requirement for the site. On <br />September 6, 2012, the Division, the Loloff's and their representatives met to discuss <br />the situation and determine possible alternatives to achieve compliance for the Loloff <br />Mine. The Operator has not complied with the requirements of the Division's letter to <br />date and has not proposed alternatives to achieve compliance. The Operator must <br />comply with the Office of the State Engineers requirement for out -of- priority <br />groundwater depletions as part of this technical revision. <br />The Applicant must choose one of the following bonding options to be included in <br />the financial warranty calculation to address the long -term groundwater <br />augmentation requirement for the site: <br />a. Backfill the pit to two feet above the groundwater level <br />b. Install a slurry wall or clay liner <br />c. Provide the Division with documentation from SEO, which demonstrates the Operator <br />owns a sufficient amount of shares of water to cover the evaporative losses from the <br />exposed groundwater and the said shares have been committed to the SEO should the <br />financial warranty be forfeited and the permit revoked. <br />