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~,- LJ DEVELOPMENT, INC. 159 TIFFANY CT. PUEBLO, CO 81005 PHONE:719-240-9424 FAX:719-583-0768 Date: June 10, 2004 Berhan Keffelew REGE9@9 -® Reclamation Specialist DIVISION OF MINERALS AND GEOLOGY JUN 12 2004 1313 Sherman Street, RM 215 D¢nVei, CG 80203 Division of Minerals & GeoloDY RE: M-2004029 AZCO GRAVEL PIT (Adequacy Letter Reply) Dear Mr. Keffelew: I will reply to your comments in the same order as you had them arranged in your letter dated May 25, 2004 as follows: I) EXHIBIT "A" & "B" deemed Adequate II) EXHIBIT "C" MINING PLAN A) The operator will gravel the Ranch Road that runs through the Permit Boundary its services a major portion of the ranch. This road and many like it will be graveled in-order to provide all weather access to the ranch. As you noted in your pre-operation inspection report dated 611/04, the operator/ applicant wishes to remove the road per se from the permit area. I have modified the mining and the reclamation maps to reflect this change as well as reduced the acreage included in the permit boundary. This change also affected the reclamation Fost calculation by reducing the total azea to be affected, the enclosed revised reclamation cost (Rule 6.34. (2)) reflects the new estimated total performance cost of $ 17,494.00 which is $ 1975.00 per acre. B) Under sub-heading "p" we stated that blasting might be necessary if the existing rock deposit becomes difficult to loosen with a ripper on a Cat dozer. The operator/ applicant understands and commits to notifying the Division of Minerals and Geology if it is necessary. A complete blasting plan and an appropriate geo-technical investigation will be done to determine the scale distance and frequency to protect any structures that could be impacted. The operator/ applicant also knows that no blasting can be done until the DIVISION OF MINERALS AND GEOLOGY gives their approval.