BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH
EXHIBIT LIST FOR Utah Division of Oil, Gas and Mining
COUNSEL Melissa L. Reynolds, Esq., Assistant Attorney General, Natural Resources Division
Board Hearing: February 22, 2017
Docket No. 2017-004 Cause No. M1049/0047 and M1049/0062
Offered as Admitted as Exhibit # Description: Division's Exhibits Evidence Evidence
Exhibit A Photographs of headframes ./ ./
Exhibit B Photographs of two shafts ./ ./
Exhibit C Photographs of buildings ./ ./
Photographs of equipment and material in ./ ./ Exhibit D boneyard
Exhibit E Photographs of core samples found on site ./ ./
Photographs of hazardous and potentially Exhibit F ./ ./ hazardous material
Exhibit G Photograph of the Zuma Clay Pit ./ ./
Page 1 of 1 Steven F. Alder (No. 0033) Melissa L. Reynolds (No. 15718) Meg Osswald (No. 16125) F I LED Assistant Attorneys General Sean D. Reyes (No. 7969) FEB 08 2017 Utah Attorney General SECRETARY, BOARD OF 1594 W. North Temple, Suite 300 OIL, GAS & MINING Salt Lake City, Utah 84116 Tel: (801) 538-7227
Attorneys for Utah Division ofOil, Gas and Mining
BEFORE THE UTAH BOARD OF OIL, GAS AND MINING
IN THE MATTER OF THE REQUEST FOR AGENCY ACTION OF DIVISION RESPONSE CHIEF CONSOLIDATED MINING AND EXHIBITS COMPANY WITH RESPECT TO MINING PERMIT NOS. LIME PEAK QUARRY, PERMIT NO. Ml04910047 Docket No. 2017-004 AND TINTIC OPERATIONS, PERMIT Cause No. Ml04910047 and NO. Ml04910062 Ml04910062
OPERATING WITHIN JUAB AND UTAH COUNTIES, UTAH
The Division of Oil, Gas and Mining (the "Division") respectfully submits its Response and Exhibits regarding the Request for Agency Action (the "Request") filed by Chief
Consolidated Mining Company ("Chief'), which will be heard at the February 22, 2017 hearing of the Board of Oil, Gas and Mining (the "Board").
I. RESPONSE
The Division does not oppose Chief s Request, which seeks a continued suspension of operations. Although the two mines at issue have been in continued suspension for more than ten years, the Division believes that, in this case, it is proper for the Board to permit a deviation from Utah Administrative Code Rule 647-4-117.4, as authorized by Rule 641-100-400. As will be discussed by both Chief and the Division at the hearing, Chief has cooperated with the Division, and is willing to agree to certain terms and conditions of a continued suspension. Those terms and conditions, which include conducting some immediate reclamation work and providing updated plans to the Division, will be more fully described in the Stipulation the Division and
Chief will enter into, as contemplated by Chief s Request. The Division and Chief are currently working toward completion of the Stipulation, and will file it with the Board by February 21,
2017.
Given Chief s willingness to come into compliance with the Mined Land Reclamation
Act and the Division's Rules, there is good cause to permit a deviation from Rule 647-4-117. In addition, because Chief plans to recommence mining operations at portions of its mine sites, it is impractical to require complete reclamation pursuant to Rule 647-4-117 at this time. As such, the
Board should permit a deviation from Rule 647-4-117 and grant Chief s Request for an additional suspension period, subject to the terms outlined in the forthcoming Stipulation.
II. EXHIBITS
Pursuant to Utah Administrative Code Rule 641-105-500, the Division also takes this opportunity to submit the Exhibits attached to this Response, intended to be offered into evidence during the February 22,2017 hearing on the above-captioned matter. The Exhibits are a series of photographs, which are separately numbered to facilitate an organized hearing. Respectfully submitted on the 8th day of February, 2017.
UTAH OFFICE OF THE ATTORNEY GENERAL
Melissa L. Reynolds Meg Osswald Assistant Attorneys General 1594 West North Temple, Suite 300 Salt Lake City, Utah 84116-3154 Tel: (801) 538-7227 Email: [email protected] [email protected] [email protected]
Attorneys for the Division of Oil, Gas and Mining EXHIBIT LIST
Exhibit A Photographs of headframes
Exhibit B Photographs of two shafts
Exhibit C Photographs of buildings
ExhibitD Photographs of equipment and material in boneyard
Exhibit E Photographs of core samples found on site
Exhibit F Photographs of hazardous and potentially hazardous material
Exhibit G Photograph of the Zuma Clay Pit Exhibit A
Exhibit B
Exhibit C
---
Exhibit D
Exhibit E
Exhibit F
Exhibit G • BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH
EXHIBIT LIST FOR Chief Consolidated Mining Company
COUNSEL Timothy R. Buchanan, Esq., Secretary, Chief Consolidated Mining Company Daniel A. Jensen, Esq. Parr Brown Gee & Loveless
Board Hearing: February 22, 2017 Docket No. 2017-004 Cause No. M/049/0047 and M/049/0062
Offered as Admitted as Exhibit # Description: Petitioner's Exhibits Evidence Evidence
Exhibit 1 Vita for Timothy R. Buchanan ./ ./
Exhibit 2 LeadFX Description ./ ./
Exhibit 3 Enirgi Group ./ ./
Exhibit 4 Aerial Photo of Mine Locations ./ ./
2011-08-16 Approved Reclamation Plan for Chief Exhibit 5 ./ ./ Mine Locations
Exhibit 6 2016-10-27 Letter from Division to Chief ./ ./
Exhibit 7 Spreadsheet of Reclamation Actions ./ ./
Stipulation between Chief and the Division - to be Exhibit 8 ./ ./ filed later Record of Decision for Lead Contaminated Soils Exhibit 9 in Operable Units 00, 01 , 02 and 03 of the Eureka ./ ./ Mills Superfund
Notice of Federal Lien recorded at the office of ./ ./ Exhibit 10 the Juab County Recorder on December 2,2003
Abstract of Judgment, dated April 28, 2005, and Exhibit 11 recorded at the office of the Utah County ./ ./ Recorder on May 17, 2005
Page 1 of2 Offered as Admitted as Exhibit # Description: Petitioner's Exhibits Evidence Evidence
Environmental Covenant entered into on August Exhibit 12 ./ ./ 8, 2006
Notice of Certificate of Release of Federal Lien, Exhibit 13 dated July 6, 2015, and recorded at the office of ./ ./ Juab County Recorder
Satisfaction of Judgment, dated May 7, 2015, and Exhibit 14 recorded at the office of the Utah County ./ ./ Recorder
Exhibit 15 Letter from Eureka City ./ ./
Page 2 of 2 P. O. Box 156 Phone: 435-433-6915 15 North Church Street Fax: 435-433-6891 Eureka, Utah 84628 Email: [email protected]
EUREKA CITY CORPORATION
Website: eurekautah.org FILE D
February 16,2017 FEB 22 2017
Board of Oil, Gas and Mining SECRETARY, BOARD OF OIL, GAS & MINING Utah Division of Oil, Gas, and Mining 1594 West North Temple, Suite 1210 PO Box 145801 Salt Lake City, UT 84114
Re: Chief Consolidated Mining Company - Request for Agency Action, Docket No. 2017-0004
Dear Members of the Board of Oil, Gas and Mining:
Eureka City Corporation has been advised of the Request for Agency Action filed by Chief Consolidated Mining Company. As you are aware, Eureka City is in the heart of the historic Tintic Mining District and has a long and rich history of mining. A significant portion of the land owned by Chief surrounds Eureka City. .
Eureka City understands that Chief has requested a waiver of the Rules of the Board to allow Chief an additional five-year period for Chief to continue to evaluate options for mining on Chief properties. Before the end of the five-year period, Chief plans on either pursuing mining operations or will begin complete reclamation of the mine sites. Eureka City has long supported mining operations and believes that the requested waiver of the Rules would benefit the community and potential mining operations. Eureka City is also working with Chief on several different issues within Eureka City.
Eureka City supports the Request For Agency Action and encourages the Board to approve the Request. Please contain me if you have any comments or questions.
Sincerely,
Ma r Nick Castleton Eureka City Corporation P. O. Box 156 15 North Church Street Eureka, UT 84628 Tele: 435-433-6915 Email: [email protected]
Docket No. 2017-004 Cause No. M/049/00047 and Ml049/0062 Chief Consolidated Mining Company Exhibit 15 FILE D JAN 23 2017 BEFORE THE BOARD OF OIL, GAS AND MINING SECRETARY, BOARD OF DEPARTMENT OF NATURAL RESOURCES OIL, GAS & MINING STATE OF UTAH
IN THE MATTER OF THE REQUEST FOR DESIGNATION OF EXHIBITS AGENCY ACTION OF Docket No. 2017-004 CHIEF CONSOLIDATED MINING COMPANY Cause No. M/049/0047 and M/049/0062 WITH RESPECT TO MINING PERMIT NOS. LIME PEAK QUARRY, PERMIT NO. M/049/0047 AND TINTIC OPERATIONS, PERMIT NO. M/049/0062
OPERATING WITHIN JUAB AND UTAH COUNTIES, UTAH
CHIEF CONSOLIDATED MINING COMPANY (flChief"L acting in accordance with and pursuant to R641-105-500 of the Utah Administrative Code, hereby files with Board of Oil, Gas and Mining ("Board") the original and fourteen (14) copies of the following proposed exhibits that may be offered by Chief at the hearing on the Request for Agency Action scheduled before the Board on February 22,2017:
CHIEF EXHIBIT DESCRIPTION NO. 1 Vita for Timothy R. Buchanan 2 LeadFX Description 3 Enirgi Group Description 4 Aerial Photo of Mine Locations 5 2011-08-16 Approved Reclamation Plan for Chief Mine Locations 6 2016-10-27 Letter from Division to Chief 7 Spreadsheet of Reclamation Actions 8 Stipulation between Division and Chief (Not completed at this time) 9 Record of Decision for Lead CO.ntaminated Soils in Operable Units 00, 01, 02 and 03 of the Eureka Mills Superfund Site (September 2002) 10 Notice of Federal Lien recorded at the office of the Juab County Recorder on December 2, 2003, as Entry No. 233659, in Book 459 at Page 749 11 Abstract of Judgment, dated April 28, 2005, and recorded at the office of the Utah County Recorder on May 17,2005, as Entry No. 52605:2005 12 Environmental Covenant entered into on August 8, 2006, by and among Chief, the United States Environmental Protection Agency Region 8, and the Utah DESIGNATION OF EXHIBITS Chief Consolidated Mining Cor lpany Fage 2
Department of Environmental Quality, Division of Environmental Response a 1d Remediation pursuant to Utah Code Ann.§§ 57-25-101 et seq., and recorded at the office of the Juab County Recorder on October 5, 2006, as Entry No. 245~ 57, in Book 498 at Page 177 13 Notice of Certificate of Release of Federal Lien, dated July 6, 2015, and recorc ed at the office of Juab County Recorder on July 9, 2015, as Entry No. 279032, ir Book 566 at Page 136 14 Satisfaction of Judgment, dated May 7, 2015, and recorded at the office of tr e Utah County Recorder on June 10, 2015 as Entry No. 50588:2015.
Chief requests the opportunity to supplement the foregoing exhibits with additional exhibits after completion of the Stipulation with the Division of Oil, Gas and Mining and based on any objections or other positions filed by any other party.
Respectfully submitted this 21st day of January, 2017.
CH IEF CONSOLIDATED MIN ING COM PAD
, .--.-'
~. BY:~-~ imothy R. Buchanan, Secretary Chief Consolidated Mining Company 7703 Ralston Road Arvada, Colorado 80002 Tele: 303-434-8757 Email: [email protected] ...
DESIGNATION OF EXHIBITS Chief Consolidated Mining Company Page 3
Certificate of Service
I hereby certify that on thi" 21st day of January, 2017, I caused a true and correct copy of the foregoing Designation of Exhibits for Docket No. 2017-004, Cause No. M/049/0047 and M/049/0062, to be mailed by Email or via First Class Mail with postage prepaid, to the following:
Steven F. Alder Mike Johnson Melissa L. Reynold Utah Attorney General's Office Meg Osswald Natural Resources Division Utah Attorney General's Offict' 1594 W. North Temple, Suite 300 Natural Resources Division Salt Lake City, UT 84116 1594 W. North Temple, Suite 300 Email: [email protected] Salt Lake City, UT 84116 Email: [email protected] Attorney for Utah Board of Oil, Gas and Email: [email protected] Mining Email: [email protected]
Attorneys for Utah Division of Oil, Gas and Mining ~)
).. .- Timothy R. Buchanan ( Chief No.1 VITA FOR TIMOTHY R. BUCHANAN
7703 Ralston Road Arvada, Colorado 80002 Direct: (720) 880-2950 Cell: (303) 434-8757 Email: [email protected]
EDUCATION AND BAR ADMISSIONS:
Admitted to practice before State of Colorado Bar, October 1982
Admitted to practice before Federal District Court of Colorado, October 1982
Juris Doctor, University of Colorado at Boulder, May 1982
Bachelor of Science with Honors, University of Colorado at Boulder, May 1979, Major - Civil Engineering, with emphasis on water resources engineering
PROFESSIONAL EXPERIENCE:
ENIRGI GROUP, Arvada, Colorado - January 2013 - Present
BUCHANAN SPERLING & HOLLEMAN PC, Boulder and Arvada, Colorado, January 2016 - December 2016
BUCHANAN AND SPERLING, P.C., Boulder and Arvada, Colorado, August 2007 - December 2015
TIMOTHY R. BUCHANAN, P.C., Boulder and Arvada, Colorado, June 1988 - August 2007
ALLBRIGHT & BUCHANAN, P.C., Denver, Colorado, January 1987 - June 1988.
MOSES, WITIEMYER, HARRISON AND WOODRUFF, P.C., Boulder, Colorado, June 1980 - January 1987. Associate from October, 1982 through January 1987; Law Clerk from June 1980 through October 1982.
Legal practice has emphasized water rights, water rights titles, water quality, real property, environmental, and public land law and state and federal permitting. Experience with state and federal environmental laws and regulations including National Environmental Policy Act, Clean Water Act, and Federal Land Policy and Management Act.
Litigation experience before Colorado courts, including Colorado Water Courts in Divisions 1, 3, 5 and 6.
Administrative agency practice, including rulemaking and adjudicatory hearings before the Colorado Ground Water Commission, Colorado Water Quality Control Commission, Colorado Water Quality Control Division and the Colorado State Engineer. REPRESENTATIVE CASES:
Litigation regarding acquisition of water rights for major municipalities and corporations, and for individual farmers; litigation to protect water rights from contrary claims and potential water quality impairment; investigated and rendered opinions regarding title to several million dollars worth of water rights; represented clients in stream and reservoir water quality standard setting proceedings, and in state discharge permit processes.
Representative appellate cases include the following:
Eagle Peak Farms, Ltd. v. Colorado Ground Water Commission, 870 P.2d 539 (Colo.App.1993) Colorado Ground Water Com'n v. Eagle Peak Farms, Ltd., 919 P.2d 212 (Colo. 1996) Empire Lodge Homeowners' Ass'n v. Moyer, 39 P.3d 1139 (Colo. 2001) Simpson v. Bijou Irrigation Co., 69 P.3d 50 (Colo. 2003) In re Water Rights oj Central Colorado Water Conservancy Dist., 147 P.3d 9 (Colo. 2006) Gallegos v. Colorado Ground Water Com'n, 147 P.3d 20 (Colo. 2006)
MEMBERSHIPS, OFFICES AND HONORS:
American Bar Association:
Law Practice Management Environment, Energy & Resources Real Property, Probate & Trust
Colorado Bar Association:
Water Law Section Agricultural & Rural Law Section Real Estate Section
Boulder County Bar Association:
Water Law Section
Member:
Colorado Water Congress Colorado Ground-Water Association Phi Delta Phi Legal Fraternity
Miscellaneous:
Guest Lecturer, University of Colorado School of Law Guest Lecturer, Colorado Farm Land Institute Guest Speaker, National Farmers Union National Convention Guest Speaker, Rocky Mountain Farmers Union Convention Guest Speaker, Transnation Title Insurance Company
21Page • Guest Speaker, Stewart Title Company Guest Speaker, South Metro Denver Realtor Association Guest Speaker, Land Title Guarantee Company National Farmers Union Policy Drafting Committee Outstanding Senior Civil Engineering Student Award Tau Beta Pi, National Engineering Honor Society Chi Epsilon, National Civil Engineering Honor Society Guest Speaker, Various seminars regarding water and title issues
31 P age
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BurgIn mIne, Utah • Chief Consolidated Aflnlng
• 83% owned mfflerat P'operttes tn tustonc mrung dtstnd tn Utah
• AppI'oxtmate4y 14,000 acres of patented and unpatenled mtnfflg drums tn the state of Utah
• HistotlcaJ Tlnt~ mtning dstnct WhiCh produced a lft(X)!I'ded 17 mloo tonnes of ore bt 1.1 mloo tonnes of lead metal and 289 m410n ounces of sitver
• The Burgin Mtne was op&mted by Kennecott on the ctaJrns up to 1978
Opportunities
• Partner 'WIth technology leader to devetop elecio·WIn sokJ1lOO:S fO( 6ead recoVfHY wtthout smeft-'O
• Short·t&m1 cash now opportunity from tndu:Stf~~ mfnerCl,I Q,Janytng as being pursued
, \7:2016 15. h
Enirgi Group owns and operates six distinct global divisions, each with a unique port folio of proven intergenerational resources that were carefully selected and amassed in order to capitalize on the market opportunities that unstoppable global change creates, Globalization, urbanization, the rise of the middle class, and resource scarcity are a few examples of unstoppable change that has created numerous market opportunities. Our team understands these opportunities and has already begun to translate them into long term value.
Our simple yet effective business strategy is employed across all divisions: disrupt and dominate markets in order to seize opportunities that generate returns for our sharehold ers. In order to do so, Enirgi Group applies innovation to all areas, processes and technolo gies. Our management team has a proven track record of repeating the cycle (and the performance) and capturing strong market positions in our chosen segments.
Enirgi Group has established corporate governance practices that are supported by a highly credentialed board. Our success is driven by an unwavering commitment to the triple bottom line - profit, people and the planet. Accordingly, our actions are consistent with the values of sustainable development and protecting human life, health and the en vironment which demonstrate our commitment to responsible governance, accountability and the delivery of value.
Thomas Gast 1275 Hightower Road Wheatland WY 82201 307.322.1986 I~S\:::.lD:#- 2306, a.r2P l'Y \ D L-i ~ DDLP 2- February 14, 2001
Mr. Lynn Kunzler Mining Program APPROVED Utah Division of Oil Gas and Mining 1594 West North Temple, Suite 1210 Salt Lake City, UT 84114 DIY. OIL GAS & MINING Re: Chief Consolidated Mining Company; Tintic Operations Combined Permit Ml049/062
Dear Mr. Kunzler,
Per our recent discussions, enclosed please find two copies of the combined permit File Number Ml049/062. This permit replaces Tintic Utah Metals LLC's Burgin! Apex Permit, File Number Ml0621009 and Chief Gold Mines Inc. 's Trixie Permit File Number Ml049/024. Since both Tintic Metals and Chief Gold are subsidiaries of Chief Consolidated Mining Company and these three entities share common officers, it is Chief s understanding that the permits can be consolidated as a name change. Sherman Young, Chier s attorney in Provo is bringing current all three business registrations. Please forward to me the proper instructions for the title of the two Certificates of Deposit for the bonds outstanding.
As we discussed, combination of the two permits addressed necessary name changes. The bond amounts are as you calculated them. Thanks to you and your group in returning Chief s permits to good standing. Sincerely,, J~~ [ Thomas E. Gast
FEti { 1 2008 0/". ...,; Q MINING • h:;mn MR~LMO~ STATE OF UTAH (Re'lisec March. 2~Q9! DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL, GAS AND MINING 1594 West North Temple Suite 1210 Box 145801 Salt Lake City, Utah 84114-5801 Telephone: (801) 538-5291 Fax: (801) 359-3940
NOTICE OF INTENTION TO COMMENCE LARGE MINING OPERATIONS The informational requirements of this form are based on provisions of the Mined Land Reclamation Act, Title 40-8, Utah Code Annotated 1987, and the General Rules as promulgated under the Utah Minerals Regulatory Program. (R647-4-et seq.) These pages will replace the corresponding pages in the original NOI. ********* 1. GENERAL INFORMATION
1. Name of Mine: Bf'{)o<.It!.u.tl.<'-:l:N Q:rMPI..6J< AM) --rH6 .... n'l.~n-6 S~ 2. Legal name of entity (or individual) for whom the permit is being requested: C~(C ~(H~~ Mailing Address: '(C('1. w~ ....,~NGJ ~ I S~,,(6 <;S-ql;) ~1'I"t:"'S CoMPAN-f
City, State, Zip: V"Af'.ICo(..(..v6R.. I 13<- , CA.""'Oi)A. Vf::c. 2w 2.
Phone: (,) b.:>'i - b~2 A lib!? Fax: (,) be<./ - bfr"t- 2lb9 E-mail Address: ------Type of Business: CorporationX, LLC __, Partnership - general __ or limited __' Sole Proprietorship (dba) __, or Individual
Entity must be registered (and maintain registration) with the State of Utah, Division of Corporations (DOC). Are you currently registered to do business in the State of Utah? Yes ~ No Entity # (:;AI ~bSl - 014.3 If no, contact DOC at www.commerce.utah.gov to renew or apply. Local Business License # : (if required) Issued by: City: ------or County: ______
If Business is a Sole Proprietor: ~ Name of owner: ~ Title: ------~~,~------Business Address: ------I)~/"7r"------City, State, Zip: ______f ~___ ~------Phone: ______Fax: ___~~~------E-mail Address: ______~__ """._ , __ ----
If Business is a Partnership: ~ Name of Partner: ~
City,Business State, Address-: Zip: ______======~:"=~I\.:J::======Y_C(.-::--:-- ______======_ Phone: ______Fax: ______~~~------E-mail Address: ------'----"~---IRI"'tfECEIVED ">' SEP 16 2009
DIV. OF OIL, GAS & MINING If Business is a Corporation: Name of Officers: <;~ €L-AI""K&,:'f(!P'''' Title: ao ______----..7'l'LlI~""',;..::.-;r____=g=:.:...~:...:..:::::~"=!.J"______Title: __C=.H=-o=- ______Title: ______Title: ______Corporate Address: _q;_"1....:.o__ -_5...L...~;.... If Business is a Limited Liability Company: Member Managed __ Manager Managed __ Name of 1 st Member/Manager: " Title: ______Business Address: S City, State. Zip: "\ Phone: Fax~------E-mail Address: ______~-::------'7.-'q 2nd Member/Manager: ______----...:---- Business Address: ______~------City, State, Zip: ______~------_ Phone: ______Fax: ______~~-- E-mail Address: ______-"'9.....-_ 2. Contacts: This person may be notified for: permitting .. / surety../' Notices _../~ __ (please check all that apply) Name: C, 'O"'(t.o or' g ~~6:I:'" Title: _a:__o ______Address: ~90 - C(qj ""651" 1-lA.s1"':::t.:K S S'1(L(h-r City. State. Zip: V-ANc..o\AV~ • ac, ~tvA[)A . \/bC ;lJ..,c'1- Phone: (,) ,"o't-b'is1..-.:1.lbg Fax: 115 bo,,'b~1.-'2./6'i Emergency, Weekend, or Holiday Phone: _--:::--______E-mail Address:jbl~.. S+a~e~ .. Yi~.... MS , Cot'n This person may be notified for: permitting surety ___ Notices ____ (please check all that apply) Name: Title: ______Address: ______City. State, Zip: ______Phone: Fax: Emergency, Weekend, or Holiday Phone: ______------_ E-mail Address: ______ Registered Utah Agent (as identified with the Utah Dept of Commerce) (if individual leave blank): Name: Title: ______Address: ______City, State, Zip: ______Phone: ______Fax: ______E-mail Address: ______ Fonn MR·LMOR Page 2 March. 2009 3. Certification: This certification must be signed by: (1.) an executive officer if the applicant is a corporation; (2.) a partner if applicant is a partnership (general or limited); (3.) the owner if applicant is a sole proprietorship; (4.) the member or manager if applicant is a limited liability company; or (5) the individual if the applicant if filing as an individual: I state under penalty of perjury under the laws of the state of Utah and the United States of America that: a. CH~-6+ Orr-! S lJ L;::CO 'A"'l6D 1\-4:t:"'t1J'S ~AtJ1 (transferor), has provided a copy of the approved mining and reclamation plan. I will follow the approved mining and reclamation plan until such time that I provide the Division with an amended Notice of Intention (plan) and receive approval of the amended Notice; AND b. I commit to the reclamation of the aforementioned large mining operation as required by the Utah Mined Land Reclamation Act (40-8) and the rules as specified by the Board of Oil. Gas M" g. Signature: ___U-f.I'>.4f--~ ______Date: .5&r'EiI'UlM l't I 20.><"", Name (typed or pr Title/Position (if applicable ):,_--.::CH=-,:,""S~€£IO.o Form MR·LMOR March,2OO9 APPROVED " 2Ji1 rr======~ DIV. OIL G & MINING STATE OF UTAH DIVISION OF OIL GAS AND MINING LARGE MINING PERMIT TINTIe OPERATIONS EAST TINTIC DISTRICT, UTAH COUNTY File No. Ml049/062 Prepared for: State of Utah Division of Oil Gas and Minmg 1594 West North Temple Suite 1210 PO Box 145801 Salt Lake City~ Utah, 84114-5301 Filed by: Cbief Consolidated Mining Company PO Bol. 51 Eureka, Utah 84628 (435) 433-6606 Prepared by: TomGast 1275 Higbtower Road Wheatland WY 82201 (307) 322.1986 Final January 2008 I' 'I APPROVED 6 :. DIV. OIL GAS & MINING Table of ConteDts Seetien Page 1.0 Introduction and Summary 3 1.1 Mine History 3 1.2 Permit HistOry 4 2.0 Permitted Operating Plan 7 2.1 Burgin No.1 Operating Plan 7 2.2 Bu~ No. 2 Operating Plan 8 2.3 Apex No.2 Area O~tin~ Plan 9 2.4 Dry Stack Tailings ~. ... ()peratin2 Plan 10 2.5 Zuma Area Operating Plan 13 2.6 Trixie Mine Operating Plan 14 3.0 Permitted Oosure and Reclamation Plan; Introduction 18 3.1 Permitted Oosure and Redamation Plan; Burgin No.1 Area 20 3.2 Permitted Oosure and Reclamation Plan; _ .... ~. No.2 Area 21 3.3 Permitted Oosure and Reclamation Plan; Apex. No.2 Area 23 3.4 Permitted Oosure and Reclamation PIan;~ Stack Tails 24 3.5 Permitted 005ure and Reclamation Plan; Zuma Area 25 3.5 Permitted Oosure and Reclamation Plan; Trixie Mine 27 3.7 Approved Variances 29 4.0 Reclamation and Reclamation Cost Estimates 30 4.1 Buram No. 1 Reclamation Cost Estimate 31 4.2 Burxin No. 2 Reclamation Cost Estimate 32 4.3 Apex No.2 Reclamation Cost Estimate 33 4.4 Dry Stack Tailings Reclamation Cost Estimate 34 4.5 Zuma Area Reclamation Cost Estimate 35 4.6 Trixie Reclamation Cost Estimate 36 4.7 Summary Reclamation Cost Estimate 37 Reclamation Estimate Cost notes 38 APPROVED " 1 DIY. OIL GAS & MINING YJgUres List - Figures FoUo,. Text 1 Project Location Map 2.1 Burxin No. 1 Disturbance Map 2.2 Burgin No. 2 Disturbance Map 2.3 Apex No. 2 Disturbance MaD 2.4 Dry Stack Tailin2S Disposal Disturbance Map 2.5 Zuma Area Disturbance~ 2.5.1 Zuma Mille Disturbance Mao 2.6 Trixie Mine Disturbance Map 3.1 BUI"2in No. 1 Redamation Map 3.1.1 BUI"2in No. 1 Sections 3.1.2 Bul'Jdn No. 1 Sections 3.2 BoWn No.2 Reclamation Map 3.2.1 BurPa No.2 Sections 3.2.2 Burgin No. 2 Sections 3.3 Apex No.2 Reclamation Map 3.3.1 Apex No. 2 Sections 3.4 Dry Stack T .•. DiSPOSaI- Reclamation Map 3.4.1 Dry Stack Tailinxs DisPOSal Sections 3.5 Zuma Area Redamation Map 3.5.1 Zuma Mine Recbimation Map 3.5.2 ZulUa Reclamation Sections 3.6 Trixie Mine Redamation Map I 3.6.1 I Trixie Mine Reclamation Sections 2 APPROVED 1. mITRODUCTIONANDS~Y DIY. OIL GAS &MINING The purpose of this document is to set forth the approved Operating and Reclamation Plans for Chief Consolidated Mining Company's Tintic Operations (File Number MI0491(62). Also included are the costs resulting ftom proper closure and reclamation in 2012 dollars. These plans replace the Burgin/Apex Large Mining Permit (permit Number M/0491O(9) and the Trixie Mine Large Mining Pennit (Permit Number MI0491024). Chiefs Tintic Operations include: mining activities at the Burgin No.1, Burgin No. 2, Apex No. 2 and Trixie mines; processing the ore through the renovated mill located on the Burgin No.2 property; and tailings disposal at the dry stack facility. Clay mining activities at the Zuma mine are included in the plan. 1.1 Mine History Tintic Operations are located in the East Tintic Mining District, Utah County, Utah in Township 10 South. Range 2 West, SLBM, Utah County. As shown on figure 1, the pennit area includes four underground mines, one surface clay mine, one 800 ton-per-day (tpd) concentrator, surface shops. warehouses and offices that were constructed and operated historically by Kennecott Mining Company. Work on the Burgin No.1 shaft was begun in 1957. This shaft was ultimately sunk to a depth of 1,100 feet and ftom 1957 through completion of the Burgin No.2 shaft in 1964, exploration, mine development and limited production operations were conducted through this shaft. Following completion of the No. 2 shaft to a depth of 1,331 feet, two production levels (1200 and 1300) were established. The north exploration drift was begun in 1966 and most exploration drifting and mine development activities were complete by 1971. In 1972 the Burgin No. 1 shaft was deepened to the 1300 level. Commercial production began in 1964 with allieadlsilver/zinc ore being direct shipped to smehers outside the district. The 800-tpd concentrator, including a crushing plant and tailings disposal facility, was completed in 1967. Until Kennecott suspended operations in 1978, mine production included both direct-ship ore and concentrate. The Trixie ore center, located in the southern section of the East Tintic District about 3 miles southwest of Eureka (figure 1), was the most recent discovery of a concealed gold deposit in the Tintic district. As described by Mogensen, Morris, and Smith (in Moms and Lovering, 1979, p.182-188), lead-silver ore was cut in several diamond core holes drilled in the Trixie area in 1954 - 1956 to evaluate a geochemical and hydrothennal aheration anomaly overlying a concealed geologic target similar to other mineralized areas in the district. The Trixie shaft was sunk in 1968 - 1969, and shortly after its completion to the 750 level, gold ore was encountered in a steeply dipping fissure west of the shaft. The mine began sustained production in 1970 and it has continued. intermittently to the present. 3 APPROVED DIV. OIL GAS &MINING 1.2 Pennit History Sunshine Mining Company leased the property in 1981 and began an exploration program designed to extend the Burgin deposit and to produce gold and silver ore from the Trixie mine. On June 3, 1985 Reclamation Contract MI0491OO9 was approved for these operations. Between 1985 and 1992 various modifications to the original contract were reviewed and approved by DOOM. In 1993 Sunshine terminated its leases and returned the Burgin property to Chief Consolidated Mining Company and the Trixie property to South Standard Mining Company. In 1994, the Trixie Large Mining Permit (permit Number Ml049/024) was approved and necessary bond posted for operations at the Trixie mine. In 1996, Chief and its partners formed a new company, Tintic Utah Metals LLC, which transferred Mining and Reclamation Pamit (File Number MI0491OO9) to Tintie Utah Metals LLC. In 1997, Chief Consolidated Mining Company acquired the outstanding stock of South Standard Mining Company and the Trixie operating permit and bond was transferred to a subsidiary, Chief Gold Min~ Inc. Following the abrupt cessation of Chief s mining and development efforts in 2002, the property was idle until 2005. Due to overextended finances, and in part. low metal prices. it was impossible for Chief to pay permit and other fees. Over the intervening years, corporate initiatives and financing efforts continued until 2005. The outstanding fee issue was discussed with DOGM and a Stipulation Agreement drafted ( by DOGM) and signed by all parties by the 9th August 2005. Many of the requirements of the Stipulation were subsequently complied with. However there were issues that created timing problems. Further meetings resulted in the "ModifIcation of Stipulation to Continue and for Dismissal" (Modification) a document that amended the time constraint issues and it was signed by DOGM and Chief by 28th September 2005. Clause (1) of the Modification was subsequently amended to give Chief until March 31- 2007 to comply with all the terms of the Modification. The resultant Operation, Reclamation and Bond Review document addressed all of the outstanding issues to the satisfaction of the Division per the approval letter dated • December 21, 2007. In January 2008, Chief bas requested that the two permits be combined to ease permit administration. The Division has reviewed the information and determined that consolidation of the permits can best be accomplished by a name change due to the fact that the officers of Chief Consolidated Mining Company, Tintic Utah Metals LLC and Chief Gold Min~ Inc. are common. The consolidated permit has been issued a new number (MI0491062) and the numbers Ml0491009 (Burgin/Apex) and Ml049/024 (Trixie Mine) are retired. 4 APPROVED The following permit information is part of Large Mining File No. Ml049/062. 1 GENERAL INFORMATION (Rule R647-4-104) DIV. OIL GAS &MINING 1. Name of OperatorI Applicant: 2. Name of Company/Corporation: Chief Consolidated Mining Company 3. Address: 15988 Silver Pass Road POBox 51 Eureka, UT 84628 4. Phone: (435) 433 - 6606 5. Name ofMinelProject: Tintic Operations 6. Assigned File Number: MI0491062 7. Location of Proposed Activities: Utah County T. lOS, R. 2W, Sec. 15, NE y.. of SE lA; Sec. 11, SW y.. ofSW Y..; and Sec. 28, NE lA, Lat. 390 57' 10" N, Long. 1 tf 12' 30''W 8. Ownership ofland Surface: Private (Fee) - Owned by Applicant 9. Ownership ofMinerals: Private (Fee) - Owned by Applicant 10. Utah Mining Claim Number(s): None 11. Utah State lease Numbers(s): None 12. SIC Codes: 1041 and 1044 13. A listing of all existing or pending Federal, State, and Local government environmental permits includes: Permit Number [ ] NPDES or UPDES (discharges to None surfilce water) [ ] VIC (underground injection of fluids) None [X] RCRA (hazardous wastes) UTROOOOO5264 [ ] PDS (air emissions from proposed sources) [ ] Construction Permit (wastewater None treatment) [ ] Solid Waste Permit (landfills, None incinerators) [X] Septic TanklDrain field Utah County [X] Other, specify (DOGM Mining & ACI/049/009 Reclamation) As shown on the table following, total permit acres are 205.7; bonded disturbance is 61.3 acres; and, actual distwbed acreage is 55.2. 5 • APPROVED current . i The acreage based on the Reclamation Contract is: ,I Bonded Actual DlV. OIL GAS &MINING Facility Permit ac. Disturbance Disturbance Apex No. 2 5.3 5.3 3.2 Burgin Complex 71.9 40.5 40.5 Dry Stack Pile 59.5 10.0 5.0 Zuma Clay Pit 69.0 8.0 6.5 Trixie Mine 25.3 10.1 10.1 Totals 231.0 73.9 65.3 6 APPROVED 2.0 Permitted OperatiBg PIau OIV. OIL GAS &MINING Chief s planned mining activities include underground mining of the north Bmgin deposit through the Apex shaft; underground mining of Trixie ore bodies through the Trixie shaft; and surface mining of the Zuma clay deposit. Al) development rock and ore will be mined from above the water table. The development rock will be placed into existing waste rode piles and ore truck hauled to the renovated Tintic mill for processing. Desai.ptions ofthese activities follow. l.l B..-gin No. 1 Area Operating PIa.o The property surrounding the Burgin area was leased to Kennecott in 1956. Sinking of the Bwgin No. 1 shaft was begun in 1957 and it was taken to a depth of 1,100 feet. The shaft was deepened to the 1,300 level in 1972 and through 1980 the No.1 served both exploration purposes and as a secondary escape from the Burgin Mine. The property was leased by Sunshine Mining Company in 1980 and in 1984 the Burgin No. 1 area was included in Permit MI049/009. Currently the No. 1 area is used as an outside storage area and is the location of several warehouses and shops as well as several small ponds. These are listed on Table 2.1. Development of Tintic's orebodies will require the continued use of the No.1 area for these purposes but the planned operations do not require the construction of new facilities or additional surface disturbance at this site. Total existing disturbance at the Burgin No. 1 site (figure 2.1) is estimated to be about 17.8 acres within a permit boundary of29.4 acres. Soils were not stockpiled during the pre-law development of the Burgin No. 1 area and no new disturbance is proposed here. Consequently no salvaged soil materials are available for reclamation. Table l.l Burxin No. 1 Facilities List 1. Headframe 2Ox4Ox70 2. Hoist Building 18x36x12 3. Warehouse 4OxSOx14 with fenced Storage Yard 4. Machine Shop 20x20x8 5. Wood Shop 20x30x12 6. Electrical Shop 2Ox4Ox10 7. Sand House (for preparation of underground backfill) 20x30x26 8. Dump station for sand backfi1120x20x12 9. Backfill mixing building lOxlOxIO 10. Dry Building 20x30x12 11. Substation 12. Mill Fresh Water Storage Pond 7 APPROVED 2.2 Burgin No.2 Area Operating Plan The Burgin No. 2 shaft was completed to a depth of 1,331 feet in 1964 ~ RlJoGAS & MINING production levels (1200 and 13(0) were established. Production began in 1964 with all ore being direct shipped to smelters outside the district. The 500 tpd concentrator, including a crushing plant and tailings disposal facility, were completed in 1967. Production included both direct shipped ore and concentrate. Operations were suspended by Kennecott in 1978. The property was leased by Sunshine Mining Company in 1980 and in 1984 the Burgin No.2 area was included in Permit Ml049/009. The approved plan included renovation of the concentrator and ancillary facilities to produce ooncentrates from district ores. Current planned development includes exploration of the ore body known to exist above and below the water table and minjng of lead and zinc ore above the water table. Ongoing studies will determine if the planned production will be hoisted through the Burgin No. 2 shaft or through an upgraded Apex No. 2 shaft. In either case, the Burgin No. 2 shaft will remain open for ventilation purposes. In addition to the shaft, the primary facilities to be utilized in the Burgin No.2 area include offices, the assay lab, the concentJator and the concentrate loading filcilities. All facilities in the No. 2 area are listed on Table 2.2 and no new facilities are planned to be constructed to support the planned operations. Ore will be hauled by truck from the Trixie mine or the Apex No.2 shaft or raised through the Burgin No. 2 shaft and placed into a surge pile at the crushing plant. From the surge pile, ore will be conveyed to the crushing plant which includes a primary jaw crusher, a secondary oone crusher and screen decks. Although the ore will be wet, water spray bars will be used to control dust at areas where control by the baghouse is not practical. Crushed ore will be conveyed to the two existing 750 ton fine ore storage bins. Fine ore will be conveyed to the 100foot by 66-inch ball mill for wet grinding. After grinding, the slurry will be pumped to the gravity and flotation plant where various flotation chemicals will be added and the finely ground pulp will be circulated through a series of flotation cells, thickeners and filters. A gold/silver or lead/silver and a zinc concentrate or a combined Pb, Zn, Ag concentrate will be produced, stored and loaded for transportation to a oontract smelter. The gold/silver concentrate will be leached with cyanide to recover the gold and silver. Cyanide contained in these tailings will be routed to a cyanide detoxification unit utilizing lNCO patented SWA1R. cyanide destruction technology. Retained solutions in the leached concentrate tailings will have WAD cyanide values of less than two parts per tmllion. Following cyanide detoxification, the concentrate-leached tailings will be combined with the flotation tailings, then flltered and placed in a loading bin for transport to the dry stack facility. Some tailings may be used to produce a paste backfill product for use underground. Any tailings not used for backfill will be filtered and truck hauled to the dry stack tailing disposal facility. Planned operational activities will not result in additional surface disturbance in the Burgin No. 2 area. Total existing distwbance at the site is estimated to be about 22.7 acres within a permit boundary of 42.5 acres as shown on figure 2.2. 8 " I Soils were not stockpiled during the pre-law development of the Burgin No.2 area. No new disturbance is proposed in this area. Therefore, no soil materials are available for reclamation. APPROVED Table 2.2 BurgiA No.2 FaciIities List 1. Headframe 30x50x90 DIY. OIL GAS &MINING 2. Hoist Building 3Ox60x20 3. Engineering and Administration Offices 36x4Oxl0 plus 8Ox80x12 4. Mechanical Shop 36x140x20 5. Crushing Plant 16x20x30 6. Ore Storage Bins (2) 750 tons each 7. Concentrator (Mill) 5OxI60x30 8. Thickeners (2) 36' diameter 9. Sample preparation Building 18x30x9 10. Assay Building 3Oxl00x9 11. Small Storage Building 3Ox50x12 12. Substation 2.3 Apex No.2 Area Operating Plan Work on the Apex No.2 shaft was begun in 1923 and it was sunk to a depth of 900 feet in 1924. The shaft was deepened to the 1,100 level in 1932. The property was leased to Kennecott in 1956 and then Sunshine Mining Company in 1980. In 1982 the property was permitted by Sunshine and in 1984 the Apex was included in permit M/049/009. Sunshine deepened the shaft to the 1,300 level and connected the level to the Burgin 1050 level. Since that time, underground exploration has intermittently been conducted utilizing the Apex No.2 shaft for access. The Apex No.2 area has been well maintained since the time of Sunshine's exploration activities. Surface facilities at the site include the fenced two compartment shaft and small swface structures. These are listed in Table 2.3 and no new surface facilities are planned here. The Apex No. 2 shaft is approximately 6 foot by 9 foot and the shaft may be increased to 8 foot by 10 feet to allow ore production from above the water table. Additionally it will provide secondary access to the Burgin Mine during production as well as provide access for exploration of the adjacent Eureka Standard property in the future. The existing development rock disposal area is about 3.2 acres and the planned development work will add about 20,000 cubic yards to the waste rock dump expanding the disturbed area 5.3 acres within the permit boundary of5.3 acres. Testing by Sunshine showed that the development rock does not contain potentially deleterious material. No new roads are proposed here. The Apex No. 2 area, including possible dump addition is shown on Figure 2.3. It is planned that up to 175,000 tons of ore will be mined each year. Mining will be conducted by conventional underground methods (drill, blast and muck). The ore will be 9 APPROVED truck hauled from the mine and placed into a surge pile at the renovated Tintic f11HI ~AS & MINING then processed. Soils were not stockpiled during the initial pre-law developmem of the Apex No. 2 shaft or dming the years immediately following. Sunshine salvaged soils during 1982 and this resulted in a small stockpile located along the western boundary of the existing project area. This stockpile contains approximately 263 cubic yards of soil. Should expansion of the dump be required, all suitable soils will be salvaged from the expansion area. To begin salvage opendions., trees will be removed and wind-rowed away ftom the toe of the dump expansion This wind-rowed material will serve as a wildlife habitat enhancement feature. Approximately three feet of soil will then be salvaged using a bulJdozerI1oadaftru opention The salvaged soil will be stockpiled adjacent to the existing stockpile. Following stodcpiling, fertilizer will be broadcast over the surfitce of the stockpile at rates based on soil analysis results. The surface will then be roughened to incorporate the fertilizer into the seedbed and prepare the surface fur seeding. The seed mixture will be broadeast over the surface ofthe stockpile and then covered. Table 2.3 Apex No.. 2 Facilities Lm 1. Headframe 18x48x60 2. Hoist Building 40x60x 16 3. Emergency Hoist Building 10x20x12 4. Dry Building and Office 2QxSOxlO 5. Substation 2.4 Dry Stack Taiti., Disposal Area Opera~ PI... Tailings will be dJ:y stacked in an engineered facility. The use of a dry stack tailings disposal system provides for water conservatio~ minimization of potential environmeDtal risk, and the simplification and economy of facility design, constructi~ open.tion, management, and closure. Construction of the dry stack pile began with vegetation removal from the facility's footprint for the first two years of operation plus the access road, diversion ditch, sediment pond and topsoil stockpile storage area. Next, topsoil averaging 12 inches in depth was removed and placed in a stockpile that was seeded. The diversion ditch and sediment pond were constructed and necessary erosion control material emplaced. These areas were fertilized, seeded and mulched with the recommended OOGM Permanent Seed Mix (see Reclamation Plan). The initial tailings lift will be placed and compacted. This placement and compaction process will be repeated until the buttress is completed. Successive tailings material will be placed by either end dumping or by use ofa radial stacker. The dJ:y stack: pile will be developed proceeding upslope from the buttress. Fugitive dust emissions from the dJ:y stack pile will be controlled by water spray or application of a chemical dust suppressant 10 APPROVED , ,. DIV. OIL GAS & MINING as needed. During the fall of each year, the following year's area will be prepared as described above. Topsoil removed from the area of future tailings deposition will be directly placed on areas that have reached their ultimate height. Prior to receiving topsoil, the areas will be prepared by grading and ripping. Following topsoil placement, areas to be reclaimed will be fertilized, seeded and munched per the approved reclamation plan. Utilizing these concurrent reclamation methods, the actual active area of the dry stack pile will be less than 7 acres. Total disturbance at anyone time will be less than 10 acres within the disturbance boundary of 26.5 acres as shown on figure 2.4. The total permit boundary is 59.5 acres. There are no tacilities associated with the dry stack tailings disposal facility. Description of existing soil types, including the location and extent of topsoil or suitable plant growth material - The Ordea- 3 soil mapping completed by the Soil Conservation Service (1984) was obtained and reviewed regarding the soils that could be disturbed as a result of construction of the dry stack tailings pile. The soil fieldwodc completed in July 1999 was directed toward the development of site-specific soil salvage data. Soil classification activities common to standard Natural Resource Conservation Service (formea-Iy the Soil Conservation Service) surveys were not performed. Prior to the initiation of the field survey, existing information was collected and evaluated to establish a base with which the field studies could be planned and efficiently completed. Project maps were reviewed to locate project area boundaries and probable access routes to and from the proposed dry stack tailings pile area. Following the review of existing infurmation, the proposed project area was travecsed to become familiar with surficial soil conditions charactmstic of the site as influenced by topography, vegetation, and geology. Observations were also made with respect to soil salvage potentials as expressed by topography and surface soil characteristics. A total of24 test pits were dug in the dry stack tailings pile fuotprint with a Bobcat trackhoe. Logs of the test pits are contained in the data appendix. Two pits. TP # 4 and TP #14 were sampled with composite samples collected at each pit from: 0 to 4"; 6 to 12"; 12 to 18"; and. 18 to 24". Approximately one quart of soil material was collected for laboratory analysis from each horizon sampled. The dry stack tailings pile will occur within the unit mapped by the Soil Conservation Service (1984) as the Lodar-Rock outcrop complex, 3 to 30 peacent slopes (LdE). This unit occurs on convex hillsides at elevations ranging from 4,800 to 6,400 feet Slopes range from 3 to 30 pesceDl The soils are shal1ow, somewhat excessively drained, and have moderate permeability's. They have formed in residuum and colluvium and support a vegetation oommunity typically consisting of~ forb~ and shrubs. This unit is typically 60 percent Lodar very cobbly loam, and 20 pa-cent rock outcrop. The components of the remaining 20 percent of the unit vary from one area to another. The Lodar soil is salvageable to a depth of 19 inches. Considering inclusions. this map unit is approximately 80 percent salvageable. 11 APPROVED DIV. OIL GAS & MINING In general, the Lodar soil exIu"bits pH values ranging from 8.3 to 8.4 ("good"-"fair"), electrical conductivities ranging from 0.46 to 0.90 mmhosIcm ("good"), and sodium adsorption values unda' 1.0 ("good"). Soil textures are typically loams ("good") with coarse fragment conteDts ranging from 35 to 60 percent ("poof'-"unacceptable" for agricultural soils but not limiting for reclamation purposes). The calcium (free lime) content of this soil is typically high. The samples collected and analyzed by Colorado State University are rated "good" in terms ofpH (6.5 to 7.8), electrical conductivity (0.4 to 0.7 mhosIcm), and sodium adsorption ratio (0.2 to 0.3) throughout the profile, Saturation percentages (31.2-46.6 pen::eot) are also rated as "good" while textures, ranging from sandy clay loams to sandy clays, are considered to be "good" to "filir". Coarse fragment contents within the upper 24 inches ofthe profile range from 3 to 34 peroeut. Though the higher pel'(~nta8es are considered to be of"poof' quality, mixing during salvage would ameliorate the effect such percentages would have. Based on the test pit work and engineering estimates of soil available for salvage, there will be enough soil salvaged to enable placement of at least 1 tOot of topsoil over all disturbed areas during the revegetation process. Plan for protecting and redqxnDtina existing soils - Suitable soils will be salvaged from the proposed project area. To begin salvage operations. surficial vegetation will be removed from the site and wind-rowed adjacent to the ultimate toe ofthe dry stack tailings pile. This wind-rowed material will serve as a wildlife habitat enhancement structure. Available soil from the footprint of the first two years of opaations will then be salvaged to an average depth of approximately 1.0 fOOt using a buIIdom'lIoaderltruck openIlion. The salvaged soil will be stodqriled in an area cleared of all vegetation and debris near the ultimate toe of the dry stack tailings pile. The stockpile will be placed in as low a profile as is posstole given the constraints of available 'WOIking space. Following stockpiling. fertiliz.er will be broadcast over the surface of the stockpile. The surface will then be roughened to incorporate the ferti1izet' into the seedbed and prt"98fe the U"faoe fur seeding. The seed mixture shown in Table 2 will be broadcast over the surface of the stockpile. Soils located along the access road to be constructed will be salvaged and windrowed along the road outslope. The soil will then be stabilized vegetatively using the methods described above for stockpiled soils. As the pile is buih uphill, soils salvaged from the third year's fuotprint will be directly placed on the portion of the graded pile that has reached its ultimate height. These areas will have already been graded and they will be fertilized and seeded with the pennaneDl seed mix (Table 1). Similarly, soils salvaged during years four and five will be directly placed on the graded pile and rertilized and seeded. Dej?th to groundwater, extent of overburden material and geologic settins - A deep ~loration hole, hole DT-3 was collared 30 feet ESE of monitor well DT-2 in the area below the toe of the proposed dry stack tailings pile. This hole was designed to prove the 12 APPROVED non--existence of a perched freshwater aquifer below the dry stack pile. It wasq~~s &MINING coosu1tation with DWQ and DWQ was offered the chance to observe drilling the well. The hole was completed to a total depth of 1225 feet (elevation 4269). The hole was dry and the bottom elevation was about 280 feet below the elevation of the geothermal aquifer of the Burgin mine and also approximately 220 feet below the elevation of Utah Lake. Completion of hole DT-3 conclusively demonstrates that no pen-hed aquifer" exists under the dry stack pile. Following consultation with the State Engineer, the hole was abandoned by cementing approximately the top 100 feet. 1.5 ZU .... Area Operating PIaB The Zuma (Larsen) haIloysite clay deposits are located in the southwestern part of the East Tintic Mining District in the SE1I4 of Section 20 and the SW1/4 of Section 21; TOWDShip 10 South, Range 2 West The clay was first exposed in 1956 during construction of the access road to the Roundy shaft. The property was leased to U.S. Energy Corporation in 1971 and this entity began exploration and development of the clay resooroes. lnteiJDittent production began in 1972 and an estimated 50,000 tons of halloysite was sold to Filtrol Corporation fOr processing near Salt Lake CIty. Since only high purity clay was ~ lower purity clay was disposed ofin dumps adjacent to the opeD cut. The clay was produced from two closely adjacent open pits and soils were not salvaged as a part of pre-law operations. In 1990 Sunshine Mining Company shipped about 9,000 tons of clay material from the dumps to Ash Grove Cement in Leamington, Utah for test use in cement manufacturing. The test shipments were made pursuant to an approved Exploration Notice. In August 1991 Sunshine filed a Notice of Inteot to Revise Mining Opcmions (permit M/0491OO9) to include shipments of additional dump material as 'Well as to include mining ftom the existing open pits. The revision was approved in 1992. The {)pmIting and Reclamation Plan herein is based on Sunshine's application. Sunshine removed the dump material and shipped it to Ash Grove but never mined fresh clay or expanded the open pit The Zuma pennit area is approximately 69 aaes, 6.5 of which have been disturbed by prior mining opalItions (figures 2.5 and 2.5. t Zuma Disturbance Maps). Chief intends to evaluate the potential of the Zuma clay deposit by conducting a drilling and sampling program. Drilling will utilize a small air track drill which does not require any significant drill pad or access trail development. Clay exploration is planned for summer 2007 and following resource confirmation and market definition, production would begin in 2008. Based on historical data, future clay production will come from mining the existing Zuma pits and extensions to them. Currently the clay pit COYel"S approximately 6.5 acres (figure 2.5). Based on 19705 drilling information, clay would be mined from the north side of the pit, from pit walls and from the pit floor. The mining Dlt'thod wooJd include ripping and overburden removal with a dozec to expose the clay. Occuionally, banter rock will be broken by drilling and blasting The clay would be mined with a backhoe which would also load truclcs haul trucks which would haul mined clay from the Zuma pits fOr processing elsewhere. A projected mining rate of 60,000 tons per year would be produced ftom a ., • APPROVED DIV. OIL GAS & MINING bench 25 feet high covering 0.75 acres. Over a seven year life, a maximum of 5 acres of additional disturbance would result from mining the Zuma clay resource. Current disturbance in the Zuma area is 6.5 acres within the permit boundary of 69 acres (figure 2.5). Exploration may disturb 1.5 acres and 8.0 acres is bonded. The open pit area may be expanded by 5.0 acres into the area of previous disturbance within the permit area depending upon the success of exploration and development. Existing roads would be maintained to place the Zuma in production. Pit configuration and overburden placement will be engineered following successful completion of the exploration program. Soils were not stockpiled during the pre-law development of the Zuma clay pit and there are currently no soils in stockpile at Zuma Based on Sunshine's exploration, the majority of the clay resource would be mined from within the existing disturbed area and no soils are available from this area. However, any suitable soils will be salvaged from any expansion into areas not previously disturbed. To begin soil salvage operations, trees will be removed from the expansion area and wind-rowed away from active operations areas. Ibis wind rowed material will serve as a wildlife habitat enhancement measure. Available soil will then be salvaged using a bulldozer/loaderltruck operation The salvaged soil will be stockpiled in an area, cleared of all trash and debris, adjacent to operations in an area where the soil will not be disturbed until it is recovered fur reclamation activities. Following stockpiling, fertilizer will be broadcast over the surface ofthe stockpile at rates based on the analyses of similar samples taken in 1995. The surface will then be roughened to incorporate the fertilizer into the seedbed and prepare the surface for seeding. The seed mixture will be broadcast over the surface of the stockpile and the seedbed roughened a second time to cover the seed. 2.6 Trixie Mine Operating Plan The Trixie ore center, located in the southern section of the East Tintic District about 3 miles southwest of Eureka (figure 1), was the most recent discovery of a concealed gold deposit in the Tintic district. As described by Mogensen, Morris, and Smith (in Morris and Lovering, 1979, p.182-188), lead-silver ore was cut in several diamond core holes drilled in the Trixie area in 1954 - 1956 to evaluate a geochemical and hydrothermal alteration anomaly overlying a concealed geologic target similar to other mineralized areas in the district. The Trixie shaft was sunk in 1968 - 1969, and shortly after its completion to the 750 leve~ gold ore was encountered in a steeply dipping fissure west of the shaft. The mine began sustained production in 1970. Through July 1985, the Trixie produced approximately 600,000 tons of ore, containing about 113,000 oz of gold and 3,980,000 oz of silver along with significant quantities of copper, and minor but mostly unrecovered quantities oflead and zinc. From August 1985 to November 1987, operations were suspended; but production resumed in December 1987 and by February 1988, a production level of 1,500 tons per month had been achieved. The mine was in production from then through 1993 when it was placed on standby. Chief Gold geologists discovered a new resource on a previously 14 APPROVED DIY. OIL GAS &MINING mined vein containing gold and silver in 1999. The mine was rehabilitated and was producing ore in 2001 and 2002. Ore was processed through the renovated Tintic processing plant. The mine has been on a care and maintenance since 2002. The overall grade of ore produced from the Trixie has been approximately 0.19 oz Aulton, 6.7 oz AWtmt, and about 1.2 percent or less Cu. Much of the ore from the "756" ore shoot contained 0.15 oz AuIton and -10 oz AgIton. The grade of ore mined from the "75-85" fissure was considerably higher in gold and lower in silver; the first 7,000 tons mined averaging 0.626 oz Aulton, 4.30 oz AgIton, and 0.15 percent Cu. Planned development of the identified precious and base metal bearing ore includes underground mining from the Trixie mine. All development rock and ore mined will be from above the water table by conventional underground methods. hoisted to the surface and placed into storage piles. The development rock will be placed on the existing mine dump within the previously approved disturbance boundary and no change for these facilities is requested at this time. Facilities in place will produce about 75,000 tons of ore each year. The ore will be truck hauled from the mine and placed into a surge pile at the renovated Tintic mill and then processed. Mining of the identified ore zones will require production of about 30,000 tons (20,000 cubic yards) of development rock. The development rock will be added to the existing Trixie mine dump and graded as it is added resulting in reduction of the dump's slopes from their current angle of repose (see figure 2.6 Trixie Disturbance Map) to a final slope of3.0H to LOY (see figures 3.6 and 3.6.1 Trixie Reclamation Map). During past mining of the Trixie ore bodies, low grade ore was hoisted to the surface and placed into a separate stockpile for later shipment as smelter flux. Shipments were suspended in 1995 when the contract smelter changed its required flux specifications. Current metal prices allow mining the low grade Pole Line stockpile (see Figure 2.6 Trixie DistuIbance Map) and processing this ore through the mill. The low grade stockpile is estimated to contain about 75,000 tons (50,000 yards) of gold/silver/copper ore. The low grade ore will be loaded into trucks and bauJed to the Tintic mill fur processing. Table 2.6 Trixie Miae Facilities List Shaft Area: I. Headframe 38x31 x85 2. Hoist Building 4Ox3Ox12 3. Office 65x2Ox12 4. Compressor Building 18x16xl2 5. DIy Building 54x32xI0 6. Water Tank 2,000 gallons Borehole Area: 1. Head.ftame 25xl0x35 2. Hoist Building 24xl9x1O 3. Fan 150 hp IS APPROVED No new fiIcilities are planned to be constructed within the Trixie permit area. DIV. OIL GAS & MINING Mille Geology - The Trixie shaft is current1y about 1440 feet deep and bottoms at the contact with the permanent water table. It is collared in the lower part of the Middle Cambrian Teutonic Limestone and within a short distance enters the Middle Cambrian Ophir Formation. At a depth of about 420 feet. it enters the Lower Cambrian Tintic Quartzite and remains in this unit to the bottom. The Cambrian strata in the vicinity ofthe mine are overlain by hydrothermally altered tuffs and flow rocks of middle Oligocene age. and all these units are cut by dikes of injected pebble breccias and by tabular bodies and small irregular plutons of monzonite porphyry. The dominant geologic structures exposed in the mine workings are the northeast trending Eureka Standard wrench fault in the northernmost part of the property, and the related east-northeast trending Trixie fault and the north northeast trending 756 vein system. Both these fiw1ts originated during movement on the deeply underlying north trending East Tintic thrust fault (Morris and Lovering, 1979, p.75). Both the footwall and hanging wall rocks of the Trixie fault zone are cut by north- to northeast-trending faults and fissures that locally were invaded by latite or monzonite porphyry dikes and intrusion breccias. At the Eureka. Standard fault the movement on many of these young fractures appears to have been deflected along this older northeasterly structure. In addition to the PblZn/Ag replacement mineralization within the Trixie fault, the principal ore bodies in the mine consist of three north northeast steeply west dipping vein like st:ruaures consisting of mineralized quartzite breccia that cut the footwall rocks of the Trixie fault zone. These structures consist of the 756 vein and at least two major splays, the 75-85 vein and the Survey vein. The largest of these mineralized bodies is the north plunging "756" ore shoot, which lies about 150 feet west of the shaft on the 750 level. At the 900 level, it is about 850 feet in length, decreasing in length upward to the top at about the 500 level and downward to 330 feet or less in slope length at the 1350 leveL Below this level the shoot appears to merge downward into the Trixie fault zone. It (the 756 ore shoot) has been mined over widths of 1 to 40 feet. The "75-85" ore shoot, located about 1600 feet south ofthe shaft at the 900 level. is somewhat smaller averaging about 330 feet in length and 16 feet in width. h extends from about the 600 level to an unknown depth below the water table. The "Swvey" or "1050" ore shoot lies south and west of the 75-85 ore body and has been mined through a horizontal distance of about 1000 feet and a width of about 16 feet between the 900 and 1200 levels. Its full dimensions are unknown. Within the multi-stranded Trixie fault zone, a small siliceous lead-silver ore body lies between the 750 and 900 levels. h is about 130 feet in length and 80 feet in width. In the triangular block of ground formed by the intersection of the Trixie and Eureka Standard faults, the limestone beds between the 750 and 1050 levels also are largely replaced by weakly mineralized jasperoid The primary ore minenls of the tabular ore shoots in the Tintic Quartzite include argentian and bismuthian tetrahedrite-tennantite. acanthite, hessite, enargite, chalcopyrite. bornite, proustite, polybasite, sylvanite, and native gold along with locally abundant 16 APPROVED ,...... ; DIV. OIL GAS & MINING galena and sphalerite. The predominant gangue minerals are pyrit~ crystalliue quartz, barite, cbalcedony, sericite; chlorite group minerals, and illite. Inasmuch as the ores occur in highly porous breccia above the water table. they are considerably oxidized, and locaUy contain chal~ covellit~ azurite, malachite, cerussite, hemimorpbite, hematite, scorodit~ and other secondary minerals. 17 APPROVED DIV. OIL GAS & MINING Closure and reclamation activities gmer:alIy include: strucbD'e and equipment removal; site clean up; grading to approved fiual coutours; grading and rippiDg ac:cess roads; topsoil or biosoIids placement; seedbed prepatation by ripping on contour; fertitization of rep1aced soils; seeding; and revegetatioo success measurement. Discussed with the individual area closure and reclamation plans are structure and equipmeot removal, - clean up, grading, access roads closm:e and topsoil placemem. Seedbed p:repandiOD, fertilization if any, geMing, and revegetation success measurement are common to aD areas and are discussed in this introductory section. Seedbed preparation will be oompleted following grading operations. With the receipt of JaboratoIy data any area potattiaIly requiring a liming trea,jient, those areas will be limed as per laboratory recommendations such that the smface 8 inches of the seedbed is properly neutmIized. I,iming may require several appIica1ionImix cycles to ~ this seedbed beatmeul goal. Biosolids or soil wiD next be placed.. Fertiliza", in the amounts recommended if any, will then be eve.nIy broadcast over all areas m:eMng soils. The seedbed will then be disked to a depth of from 4 to 6 inches, or manually roughened as necessary on steepec slopes, to inoorpomte the fertiliz.eI' into the seedbed. Following fertilization, the D R.evegecaion activities will be timed to coincide with a reoogoim1 planting season. Grading may ordinarily oocur during any month ofthe year. IioweYa" topsoil or biosolid placement and revegdation activities are more limited with respect to the time of year. Tables 2 and 3 depict the prefen ed and alternate revegetation schedules to achieve reclamation objectives. These scbedules may be modified somewhat depending upon materials and labor availability. Evaluation ofrevegetation success will be completed at the end ofthe thinl growing season fullowing the last seMing or fertilization treatment applied The method to be used to measure success will be one of those identified by UDOGM in uAtlachmeut 1" of the document "Notice of Inteotion to Commence Lm:ge Mining Opetationsfl (Rev. 1192). For the dry stack ~ revegdation will be oonsidered successfu1 when it has achieved the 70 pa-a:m oftbe total premining vegetative ground cover ofthe sagelgrass strata ofthe selected refa:eooe area and has survived three growing seasons fullowing the last seeding or fertilization opaation. Pfc>.mining vegetative ground cover will be based on measuremems ofground oovu of an adjacent undisImbed area. WIth approval of the 1984 Reclamation Plan, DOGM grauted several variances from the reclamation rules tOr the Burgin No. I, BuIgin No. 2, Apex No. 2, Zuma and Trixie areas. These are brietly discussed below. Aml specific gnmted variances are discussed with tho8e areas. 18 APPROVED DIV. OIL GAS & MINING The previous opa:ator (Sunshine) conducted a revegetation test plot program which demonstrated that revegetation ofthe waste rock dumps was not likely to be able to achieve the Division's 70% success standard Baed 0Jl the results of the test plot program, DOGM granted a 50% revegetation success standanl While the opentor is willing to invest the funds to implemeol a bioJoIids seedbed program, the opaBtm is not wiIliog to ina'ease the revegetation success standard from the aurentIy approved SOOA to 70%. Waste rock: slopes were not required to be ~ in the approved 1993 plan. Again, the operator is willing to invest the funds to implement a biosolids seedbed program for waste rock: slopes, but is not willing to implement a revegetation success standard for the waste rock: slopes. Table 1 - DOGM RecollUlleaded RevegetatioD Specic:s LDt The Recommended Revegetation Species List following has been developed by DOGM in response to a proposed permanent revegetation mix developed by the LLC in 1998 following site investigations. Chief will adopt the DOGM mix based on IXXJM's experience in successfully revegetating sites similar to disturbance under this submittal. Common Name Species Name ·Rate lbsIac (PLS) - - Streambank wbeatgrass A~ riporlflm 2.0 Western wbeatgJass ~smithii 2.0 Imermediate wheatgrass Agrwwon inIennedirtm 1.0 'Piu1e' orcbard gmss Daqy!is glomeraIa 0.5 Basin wildrye ~cinueus 2.0 Lewisftax LimIm lewisii 1.0 Ladac alfalfa Medicago sativa 1.0 Yel.low sweetclover Melilotus cdJicinalis 0.5 Palmer pe'JSletooI:l Pefl1lteI!on,paImeri 0.5 Smanbumet Sottpi8t:lrba minor 1.5 WyomiDg big sagebmsb Artemisia trldenflltQ wvomin,ge1Isis 0.2 Rubber rabbi1brush Chrysomt!tmmts 71/ZUS11!OSUS 0,5 Forage kochia KQChia (!!!1.strata O.S Totallbslac 13.2 Note: FOIb and shrub species to be excluded from mix applied to pond embankments. *This the recommended drill seeding late. Ifthe species are to be broadcast seeded, ina:ease the rate by SOO/o. 19 APPROVED OIV. OIL GAS & MINING TABI...E 2 - PREFERRED (FALL) REVEGETATION SCHEDULE Month Reclamation Tecbnicme JFMAMJJASOND Grading As close to the time of planting as possible Ripping and Resoiling XXXX Seedbed Material Sampling XXX Fertilization XXX Seedbed Preparation XXX Seeding XXX Mulching (if specified) XXX TABLE 3 - ALTERNATE (SPRING) REVEGETATION SCHEDULE Month Reclamation Technigye JFMAMJJASOND Grading As close to the time of planting as possible Ripping and Resoiling XXX Seedbed Material Sampling XXX Fertilization XX Seedbed Prepamtion XX Seeding XXX Mulching (if specified) XXX 3.1 Permitted a.sare aacI Rrda-ation Plan; BurgiB No.1 Area. The Burgin No.1 project area is currently permitted fur approximately 29.4 aaes. Within the permit area. approximately 17.8 aaes have been disturbed The cmrent land use consists of su.rtace support operations fur precious and base metals hard rock mining. The proposed future land use of the Burgin No. 1 project area following reclamation is covered and uncovered storage and open spaoe. Except fur the substation and warehouse with associated fenced storage area. all buildings tanks, structures and other equipment remaining at the conclusion of mining operations will be dismaotled and removed from the permit area. The pre-law substation, warehouse and fenced stoIage yard will remain following reclamation of the balance of the Burgin No. 1 area. This building and stomge yam will be utilized by the pIoperty own« post-reciamatioQ to support on-going company operations. Machinery and equipment outside the stonJge yard will be transported to another company project site fur use or storage; sold as used equipment or fur scrap; or disposed of at an approved off-site facility. All COIla'de slab floors will be broken up and buried in the Burgin No. 1 waste rock dump and covered with a minimum of 1.0 fuot ofwaste rock material. All trash, scrap metal, and woody debris will be removed from the project area and disposed of in accord with applicable regulations. Airy EPA-classified hazardous wastes remaining on site will be packed and shipped as per state and federal requirements to a licensed bazanIous 20 APPROVED DIV. OIL GAS & MINING waste treatmentlstorageJdisposal t8cility. The small Burgin No. 1 shaft will be closed by placement of a commercial cattle guard over the opeoin& bolting it to the shaft collar and then welding the bohs to prevent accidental entry to the shaft. This closure method will provide for public safety while al10wing future access to the shaft by the owner for exploration and development activities. As the Bmgjn No. 1 project site is decommissioned, the gnlding sequence will begin at the ponds. These ponds were used by Kennecott as receiving ponds for Burgin dewatering water and previous sampling has shown that the ponds variably contain sediments that would be deleterious to revegetation efforts. The mill make-up water pond will be drained and the liner folded and covered in pla<:e with embankment material. Next the settling poods will be graded and covered with at least 2 feet of fiMnble material. The ponds will be graded to allow run offto drain to pond 3 and then to the Silver Creek drainage. While the 1984 approved plan granted a variance regarding slope reduction, the operator is willing increase the cost ofreclamation to conduct grading operations to reduce dump slopes from the current (and approved via variance) angle of repose to 3H:IV (see figure 3.1) in a spirit of cooperation and to better enhance the chances of successful revegetation. The necessary gnlding will involve moving about 19,000 cubic yards ofdump material as shown 00 the reclamation plan drawing. Following grading, the area will be sampled to determine if acid generating or other- deleterious conditions are exposed. Because the dump material is predominately 1imesto~ advene results are not expected. The Burgin No.1 area. was developed prior to the effective date of the Utah Mined Land Reclamation Act and no topsoil was salvaged so none is available for reclamation. Therefore biosolids will be utilized as growth medium. Biosolids will be sourced locally, either from a dairy or the city of Provo or Orem and truck hauled to the Burgin site where they will be end dumped and spread with a marmre spreader. Biosolids will be applied at the DOOM suggested rate of 10 tons per acre. Following biosolid application, treated areas will be ripped on contour. Following seedbed preparation, the DOGM recommended seed mixture shown in Table 1 will be evenly broadcast over areas to be seeded. Broadcasting will be completed using an equipment-mounted broadcaster. The seeded area will then be lightly rougheDed mechanically or mamJaJly to cow:c the seed. 3..2 Permitted Closure aDd Redamatioo Plan; Burgio No.2 Area The Burgin No. 2 permit area. is approximately 42.5 acres. Of this total., approximately 22.7 acres have been disturbed (figure 2.2). The current land use consists of a mine waste disposal area, mineral processing facilities and support along with administrative support filcilities for precious and base metals hard rock mining. The proposed future land use of the project area. following reclamation is administrative support filciliti.es and open space. The pre-law engineering and administrative offices contains geologic and mine maps, geologic assay data and other company data collected over the past 100 years. These buildings are in good repair and the company intends to continue their use 21 APPROVED' beyODd cessation of mining activities at the Burgin No.2 site. The pre-law s£\Y·Dmt_ & MINING is in good repair and it will be utilized to support on- going company operations. Except fur the office and shop buildings, all buildings, tanks, structures and other equipment remaining at the conclusion of mining operations will be dismantled and removed iom the pamit area. The IDIICbineJy and equipment will be transported to compauy project site for use or storage; sold as used equipment or for scrap; or disposed of at an approved 011'-. facility. All concrete slab floors of sb:uctures and the asphalt mill yard surface will be broken up and buried in the Burgin No. 2 waste rock dump and covued with a minimum of 2.0 foot ofwaste rode material. Any EPA-classified hazardous wastes remaining on site will be packed and shipped as per state and federal requirements to a licensed hazardous waste treatmeorI8looIgeIdisposal facility. All trash, scrap metal, and woody debris from the project area will be disposed of in approved manner. The Burgin No. 2 shaft itself will not be permanently sealed because this shaft provides ventilation for the Bwgin mine complex. The shaft will be closed by insfal1ation of a cattle guard over the opening and pamanently attaching it to the shaft collar. A fence with locked gate will be erected around the shaft area. Public heahh and safety measures include the posting of warning signs and the closing of access to the closed shaft of a locked gate. This closure method will provide for public safety while allowing the shaft to be used for ventilation purposes by the owner and for future exploration and development activities. Following the removal of buildings, structures, equipment and foundation breaking, grading operations w1ll begin. The Bmgin No.2 dump slopes will be reduced from their current angle of R:pOSe to approximately 3H: 1V. The south dump area adjacent to Silver Pass Road can only be reduced to 2.5H:IV because of the location of Silver Pass Road, a Utah County road. The 1984 permit granted a slope reduction variance to allow the angle of repose dump slopes to remain in place. However Tintic Utah Metals is willing to spend the funds necessary to reduce the dump slopes in a spirit of ooopaation and to better enhance the chances of successful revegetation. The necessmy grading will involve moving about 43,000 rubic yards ofdwnp 1llIIteria1 as shown on the reclamation plan drawing (figure 3.2). Following grading, the area will be sampled to determine if acid generating or other deleterious conditions are exposed. Because the dump material is predominately limestone, adverse results are not expected. The Burgin No.2 area was developed prior to the effective date of the Utah Mined Land Reclamation Act and no topsoil was salvaged so none is available for reclamation. 'I'I1a'efore bio50lids will be utilized as growth medium. Biosolids will be sourced locally, either from a dairy or the city of Provo or Orem and truck hauled to the Burgin site where they will be end dumped and spread with a manure spreader. Biosolids will be applied at the DOOM suggested rate of 10 tons per acre. Following biosolid application, treated areas will be ripped on contour. Following seedbed preparation, the D 22 APPROVED DIV. OIL GAS & MINING equipme.ot-1IlOUDted broadcaster. The seeded area will then be lightly roughened mechanically or manually to cover the seed. 3.3 Permitted Closure and Redanlatiou Plan; Apex No.2 Area The existing Apex No.2 disturbed area measures approximately 3.2 acres within the permit area of 5.3 aaes (see figure 2.3 Apex Disturbance Map). The 1984 pennit was approved for 2.8 disturbed acres. The slight differences in acres between the 1984 and 2007 filings is likely due to better measurement associated with the current CAD drawings compared with the surveys used in preparing the 1984 pennit. Placement of development rock will expand the disturbed area to approximately 4.3 acres. The current land use is underground mining which was begun in the 1930's. The proposed future post-mining land use of the project area following reclamation will be wildlife habitat and open space. All buildings, tanks, structures and other equipment remaining at the conclusion of mining opemions will be dismantled and removed from the pennit area. The machinery and equipment will be: transported to a company project site for use or storage; sold as used equipment or for saap; or disposed of at an approved off-site facility. All conaete slab floors will be broken up and buried in the Apex waste rock dump and covered with a minimum of 1.0 foot of waste rock material. Any EPA-dassified hazardous wastes remaining on site will be packed and shipped as per state and federal requirements to a licensed hazardous waste treatment/storageldisposal facility. All trash, scrap metal, and woody debris will be removed from the project area and disposed of in accord with applicable regulations. The small 8 foot by 10 foot two compartment shaft will be closed by placement of a cormnercial cattle guard over the openings, bolting it to the shaft collar and then welding the bolts to prevent accidental entry to the shaft. A fence with locked gate win be erected around the shaft area. Public health and safety measures include the posting of warning signs and the closing of access to the closed shaft of a locked gate. This closure method will provide for public safety while allowing the shaft to be used for ventilation purposes by the owner and for future exploration and development activities. Following the removal of buildings, structures, and equipment, grading operations will begin. As shown on the reclamation map, figure 3.3, following placement of development rock only minor grading (approximately 2,000 yards of cut) will be required to produce the final dump slopes of 3H: 1V. This will result in a stable slope oonfigmation blended into the 9UITOU1lding tanUn to the degree pom"le. The upper, nearly level surface of the dump will be graded to eliminate surficial irregularities and the graded surface win be bade-sloped to prevent run off drainage from passing over the dump outslopes. Following grading, the dump material will be tested fur acid generating potential or for other potentially deleterious material. The majority of additional dump material is planned to be limestone. The limestone will serve to neutralize any acid generating potential from the existing dump material. In the event that additional neutralization is necessary, ground agricu1turallimestone (-f-9001O total neutnilization potential or equivalent) win be spread over 23 DN. OIL GAS & MINING necessary areas at a me of approximately 8S tons of material per aae. The applied limestone will be thoroughly worked into the surface 6 inches of graded waste material. Multiple appIicatiooireatment activities may be required to complete this phase of the revegetation sequen<;e. The road spur leading from the railroad crossing to the Apex project Bml will be decommissioned and graded as a part of reclamation activities. Existing road cut-slope embankments will be reduced to a slope angle of from 2H: I V to 3H: 1V and the resulting surface left in a roughened condition to enhance reseeding potential. The roadbed proper will then be ripped to a depth oftwo feet to devd.op a seedbed. Because the Apex mine was developed prior to the effective date of the Utah Mined Land Reclamation Act, DO topsoil was salvaged and an insufficient quantity is available for reclamation. AvailabJe soil materia) will be spread over the flat dump sur:filce to a depth of 1.0 foot. The msteriaI to be respread will originate from the stockpile currently existing on site (approximately 263 cubic yards) and the stockpile to result from soil salvage on the proposed expansion area. The mataial will be tnmsported and spread using either a buUdozer or a loaderltruck opcntion Soil reapplication will incorporate the fewest passes over the area to be treated as is possible to enhance the opportunities for even soil distribution Biosolid material will be used to supplement available topsoil. Biosolids will be sourced locally. either from a local dairy or the city of Provo or Orem. and truck hauled to the Apex site where they will be end dumped and spread with a manure spreader. Biosolids will be applied at the DOGM suggested rate of 10 tons per acre. Fertilizer, in the amounts recommended by soil analysis will then be evenly broadcast over any areas receiving topsoil replacement. Following soil, biosolid and fertilizer application, treated areas will be ripped on contour. Following seedbed preparation, the DOGM ~ended seed mixture shown in Table I will be evenly broadcast over areas to be seeded. Broadcasting will be completed using an equipmem-mounted broadca.sta: or a hand-heid "cyc1one"-type implement The seeded area will then be lightly roughened mechanically or manually to cover the seed. 3.4 Permitted Closure ud R«I_matiou PIau; Dry Stack Tailinp Disposal Area The dry stack taiJiogs facility permit area consists of approximately 59.5 acres with an actual disturbed area of about 26.5 acres. By utilizing concurrent reclamation methods, actual disturbance at anyone time will not exceed 10 acres of which 00 more than 7 acres will be pile. The current land use oftbis area is bistoricaIly minenl exploration, wildlife habitat and open space. The proposed future post-mining land use of the dry stack tailings facility projea area fullowing reclamation is mineral exploration, wildlife habitat and open space. The pile will be constructed uphill from the toe buttress by placing d.ewata'ed tailiD8S material eitha' by end dumping or by means of a radial stacker. Overall, the filce slopes are to be constructed at a 4: 1 slope, which has been shown to be stable (Engineering Design Memorandum). The upper, nearly level surface of tailings will be graded to etiminate 24 APPROVED uficiaI irregularities. The graded surface will be sloped to approximately 3 p8ife&1ltOAS & MINING alJow positive drainage and to prepare the area for soil placement. Prior to soil placement, representative samples of seedbed materials will be taken from all areas to be seeded and the samples sent to a laboratory for analyses. Soil material will be spread over the entire taiJings pile area to a depth of 1.0 foot. The material to be spread will originate from areas being prepared fur expansion of the pile or the topsoil stockpile. In the event that revegetation of the first lift is unsuccessful due to lack of soil material, successive lifts will have at least 18 inches of soil applied. The soil will be transported and spread using a truck, loader and bulldozer openttion. Soil reapplication will incorporate the fewest passes over the area to be treated as is possible to enhance the opporttmities for even soil distribution. Seedbed preparation will be completed following soil application. Fertilizer, in the amounts recommended by the laboratory analysis, if any, will be evenly broadcast over the seedbed. The seedbed ofthe tailings pile will be ripped parallel to the contour to a depth ofl feet with ripper shanks spaced no more than 3 feet apart mixing the soil, tailings and fertilizer prior to fW'rling Soil applied to outsIopes will be left in a roughened condition following grading. Following ripping and fertilization, the seed mixture shown in Table 1will be broadcast 0VfS the prepared seedbed of the soiled area. Broadcasting will be completed using an equipment-mounted broadcasta' or a hand-heJd "cyc)one"-type implement. Any previously seeded embankment areas requiring supplemental seeding will be seeded and fertilized at this time. The access road to the dry stack facility area will also be decommissioned and graded following revegetation activities at the pile. The access road was constructed over relatively flat terrain so road cut-slope reduction is not necessary. The resulting surface will be left in a roughened condition to enhance revegetation potential. The roadbed proper will then be ripped to a depth of 2.0 feet to create a seedbed. The soil stored in berms along the road outslope will be pulled over the road distwbance following grading and ripping. The road area to be reclaimed will then be fertilized and seeded. Awroved Variance - Chief was granted a variance to leave the small. revegetated sedimentation pond in place following reclamation. The pond will assist in control of runoff from the pile area and it will serve as a wildlife enhancement feature during periods when it contains water. 3.5 Permitted Closure and ReclamatioD Plan; Zuma Area The Zuma permit area is approximately 69 acres, 6.5 ofwhich have been disturbed by prior mining operations (Zuma Disturbance Maps. figures 2.5 and 2.5.1). The current land use is inactive clay surface mining and open space. The proposed future post-mining land use of the project area following reclamation is wildlife habitat and open space. All of the existing disturbance is ~law disturbance dating to the early 1970·s. Based on current knowledge, future mining activities at the Zuma will involve mining from the pit floor and expanding the pit to the east in areas disturbed in the 1970's 2' APPROVED DIV. OIL GAS &MINING Chief plans to conduct a clay exploration program to determine if mineable clay resources are presem in the Zuma area. The reclamation plan presented herein is based upon the DOGM 1992 approved plan subsequently transferred to Chief Following site deoommissioDing all trash, saap metal, and woody debris will be removed ftom the project area and disposed of in acoord with applicable regulations. The sur:face of the haul road will be ripped to a depth of from one to two teet The west ~ road is the pre-Iaw access road to the Roundy shaft and it will remain in place. The ripped road uii1ce will then be graded to re-establish approximate original contours, to the extent possible, and to CODIrol erosion of the regraded road surtace. Regrading and preparation of the pit floor, as well as the lower dump ~ will be completed in the mannt'I' desaibed above fOr roads. In addition, the surlilces ofthe north bigbwall benches will be roughened or ripped to prepare the benches fur seeding. In all cases, ripping will precede the application of revegetation treatments such as disking, seeding, and mulching. There are no surfilce filciIities installed at the Zuma site at this time. The ephemeral drainage previously blocked by the lower dump will be reestablished during reclamation. The channel will be graded to its approximate original configuration and rip rapped with competent rock materials to protect the channel bottom and banks from erosion. Revegetation activities will begin upslope ofthe rip-rap following the revegetation sequence as described for road surfaces. No topsoil was salvaged at this pre-lawdisturban<:e during any initial or subsequent operations. Since the advent of the Rules of the Minexa1s Reclamation Program. no additional smface area has been distuIbed which ~ ova'lain with undisturbed soil materials. In June of 1992, the Division granted a variance to topsoil redistribution requimnents. Tberefure no soil will be redistributed over areas to be reclaimed unless the planned exploration program extends mining into areas not previously disturbed. Topsoil, where available will be salvaged, placed into stockpile and made available for reclamation. Seedbed material samples will be collected at the conclusion of grading and ripping operations from all areas to be seeded. The samples will be sent to a qualified laboratory for analysis. Fertilizec, in amounts recommended (if any) as a result of soil sample analyses, will be broadcast over the seedbed. The seedbed will be disked or otherwise roughened to incorporated fertilizer into the disturbed sur.tace. Seedbed preparation, fertilizatio~ seeding, and revegetation success measurement are common to alI areas and are discussed in the introduction to this section. Approved Variances: Zuma Area (Rule R647-4-112): In November 1991, Mr. Mellor of Sunshine Mining Company requested a number of variances with respect to grading and revegetation operations at the Zuma Pit. The variances were granted in a letter dated June 19, 1994 from DOOM's Mr. Hedberg. For the purposes of this pennit summary these approved variances are discussed below. Conditions at the pit site remain the same with respect to the assessments upon which these requests were based. No disturbance has taken place at the Zuma site other than surface stockpile material removal and site clean-up. 26 APPROVED i"',- " DIV. OIL GAS & MINING Rule &647-4-111. 7 - HighwaIIs Less than 45 Degrees - Pre-law opentions left the higbwall sJopes erreMing the prefeued ratio as stated in Minerals Reclamation Program Rules. It is not practical or cost-effective to reduce the existing bighwall slopes to a slope equal to or less than 45 degrees. The south pit wall will remain in its a.uTeIlt state. No disturbance has oocurred to the south wall since prior to 1992. To break the slope along the north wall, the approved plan includes cutting a series of benches along the existing higbwall face and revegetating the benches with the approved seed mixture. Rule 647-4-111.12 - Topsoil Redistnlrution - Prior pre-law operators did not stockpile or save any soils from the distwbed areas associated with this operation. No previously undistmbed surface areas have been disturbed since 1992. Therefore, no soil materials exist on site which could be used for distribution over any graded site. Any future disturbance to a previously undisturbed surface would be preceded by soil salvage and stockpiling openltions. The salvaged soil would then be reapplied to a graded surfilce prior to revegetation. Rule 647-4-111.13 - Revegetation Standaxd for Pit Highwalls and Pit Floor - WIth the granting of the variance for bighwall reduction, a variance from the rule requiring revegttating pit bighwalls was granted. In granting the variation, the Division required that any benches constructed be seeded. Tintic will conduct revegetation opecations on these benches, including broadcast ~jn& during the reclamation phase of this project The pit floor will be seeded following seedbed preparation. However, because there is no topsoil available for reclamation of the pit floor, a variance from the revegetation standard for the pit floor was granted. 3.6 Permitted Closure and Reclamation Plan; TriDe Mine The existing Trixie disturbed area measures approximately 10.1 acres within the permit area of 25.3 acres (see Disturbance Map). The 1993 permit was approved for 8.55 disturbed acres within a permit boundary of27 acres. The slight differences in acres between the 1993 and 2007 filings is likely due to better measurement associated with the current CAD drawings compared with the surveys used in preparing the 1993 permit transfer. The current land use is underground mining which was begun in the late 1960's. The proposed future post-mining land use of the project area following reclamation will be wildlife habitat and open space. All buildings, tanks, structures and other equipment remaining at the conclusion of mining operations will be dismantled and removed from the permit area. The machinery and equipment will be: transported to a company project site for use or storage; sold as used equipment or for saap; or disposed of at an approved off-site facility. All concrete slab floors v.ill be broken up and buried in the Trixie waste rock dump and covered with a minimum of 1.0 foot of waste rock material. Any EPA-d.assified hazardous wastes remaining on site will be packed and shipped as per state and federal requirements to a licensed hazardous waste treat:ment/storageldisposal facility. All trash, saap metal, and 27 APPROVED DIV. OIL GAS & MINING woody debris will be removed from the project area and disposed of in accord with applicable regulations. The small 8 foot by 8 fuot two compartment shaft and the borehole secondary escape shaft will be closed by placement of commercial cattle guards over the openings, bolting them to the shaft collar and then welding the bolts to prevent accidental entry to the shafts. This closure method will provide fur public safety while allowing future access to the shaft by the ownec for future exploration and development activities. Following the removal of buildings, structures, and equipment. grading operations will begin. As shown on the distmbance map, following placement of development rock only minor grading (approximately 2,000 yards of cut) will be required to produce the final dump slopes of 3H:IV. This will result in a stable slope configuration blended into the swrounding terrain to the degree possible. The uppec, nearly level swface of the dump will be graded to eJiminate surficial irregularities and the graded surfilce will be back-sloped to prevent run off drainage from passing over the dump outsJopes. Following grading, the dump material will be tested for acid generating potential or for other potentially deleterious material. The majority of additional dump material is planned to originate £rom the replacement ore body which is hosted in Ophir limestone. The limestone will serve to neutralize any acid generating potential from the Tintic quartzite. In the event that additional neutralization is necessary, ground agricultural limestone (-f-900.4 total neutralization potential or equivalent) will be spread over necessary areas at a rate of approximately 85 tons of material per acre. The applied limestone will be thoroughly worked into the swface 0.5 feet of graded waste material. Multiple application/treatment activities may be required to complete this phase ofthe revegetation sequence. The road spurs leading from Silver Pass Road, a Utah County road, to the Trixie and borehole project areas will be decommissioned and graded as a part of reclamation activities. Existing road cut-slope embankments will be reduced to a slope angle of wm 2H: I V to 3H: IV and the resulting sur.tace left in a roughened condition to enhance reseeding potential. The roadbed proper wiD then be ripped to a depth oftwo feet to develop a seedbed. Because the Trixie mine was developed prior to the effective date of the Utah Mined Land Reclamation Act, no topsoil was salvaged and none is available for reclamation. Therefore biosolids will be utilized as growth medium Biosolids will be sourced locally, either from a local dairy or the city of Provo or Orem and truck hauled to the Trixie site where they will be end dumped and spread with a manure spreader. Biosolids will be applied at the DOGM suggested rate of 10 tons per acre. Following biosolid application, treated areas will be ripped on contour. Following seedbed preparation, the DOGM recommended seed mixture shown in Table 1 will be evenly broadcast over areas to be seeded. Broadcasting will be completed using an equipment-mounted broadcaster or a hand-held "cyclone"-type implement. The seeded area will then be lightly roughened mechanically or manually to cover the seed. 28 APPROVED DN. OIL GAS & MINING 3.7 Approved Variances DOGM approved a number of variances with the original 1984 pennit and its subsequent transfer to Chief These are discussed below. Because oftheir possible value for future exploration and development activities, the Burgin No.1, Burgin No. 2, Apex No.2 Trixie and Trixie borehole shafts were allowed a variance from permanently sealing the shafts. The alternative shaft closure method described herein fully meets the fP~~nlatory requirement to provide for public health and safety. Due to their future value to the landowner, it is requested that the warehouse and outside storage yard at the Burgin No.1 and the offices and shop at the Burgin No.2 area be excluded from reclamation along with the substations that provide power to these buildings. These structures are pre-Iaw and in good repair. Requiring their demolition would invoke takings issues. The existing permit carries approved slope reduction, topsoil and revegetation success variances for the Burgin No.1, Burgin No.2, Apex No.2 and Trixie sites. Chief is willing to reduce dump slopes from their current angle of repose to 3H: 1V as well as apply biosolids as growth media in the spirit of cooperation with the regulations and to enhance the chance of vegetative success. However, Chief is not willing to adopt more stringent success standards and believes that the existing variance is reasonable and appropriate given the history of the site and permit. 29 r APPROVED " DJv. OIL GAS &MINING Introduction and Discussion of Methodology: The reclamation cost estimate for Tmtic Opeud:ions contained herein is the result of extensive discussions and agreem.em between the Division and Chief: It is based on Means Heavy Construction Cost Data 2006 and Blue Book ~ Half2006. 30 APPROVED OIV. OIL GAS &MINING RECt..AMATION SURElY ESTIMATE 12117121D07 P!p!3 MIne ()penII!or: 'T1nIIc UWI MI&IiII. UC MIne Name (IAa): Eb1Ifn .-t IXXilM FIe Number: W04QIOOIiI r:.-.. -llwdftalM, HoiIt BuIcIIng, Ma::t*Ie Shop. Wood StIop, EJec:CricIII Shop. s.nd ~ DIy BuIdtIg, &111...... FreIh WtIIIr .... Pond. 1 Ihaft doeecI No Topeol AWIIIIbIe - wnend eoIIl1'IIIIertIIIt with bIoIaIIda 1otf8c. Dump ~ tIo 3tI:1v IIope ~ tIo remIIIn tIor poet "**1G toM 17.8 acres Naee: aduII unit COII:s !NY wry tIo tlleCOidlb. ... unit COllI updaIIt 1C11.Z5108 AI:lUdr. ~ IMIft ~ Nata • .v..eIc(mIIa&.le.illllulI 1 -..n 500 500 (1) 0an0III0n r:A buIIdInga & ___ 54776 d 0.2e 1G42 (2) 0an0III0n r:A ~.11e 4e51f 8.1" 28!S5 (3) RespdIng ...cbnp __ - oaR doIz:w 19000 CY 0.88 12540 (8) RIppIng ModcDIIe & _ - 08R doIz:w 10.8 acN 288.00 3110 (9) Sol 1lumDStm 1000.00 1000 1b ! PnIp - 08R doIz:w COST PER HOUR 18 IhcM' 27U5O .-oe :at ~(10~) 16.8 acN 3eO.00 ~ 1. EIr GaW'III'" cIebIp & tr8Ih remcMII 17.8 ecre 75.00 13315 ~ SuIlIIcMI r:A RecIIIIIIIIIoII eo. (for .eheet) ".on 11._""'''' 41«!Ut1 2000 8000 (1h) Reclalllllloi I ~ -1~ r:A recIIIllIIIIoi I estImIIte 1~ ConIIngeI"" 11476 eec.te tIor 5)WrS lit 3~ per~ 12192 dIIIIurt!ed _ .. $4 700 4.1 BargiD No.1 Area Closure aad R«damtatioll Celt Estimate 31 APPROVED tv. OIL GAS & MINING MlneOpenllor: l'HIc UWI ...... LLC MIne ~ (AlaI): Ebgin 12 DOGM RIll fUnber. MI04SiOO9 ~ - ...... HoiIt BuIldIng, EJ..,....1g & AcIrIWt. omc.. MecNlIIcIII Shop. CIUIt*1g PIn, 2 Ore ~ BiIw, CaI_ ..... (mil). lbIcIa .... ~ BuIldIng. SmIII Storage BuIldIng, &1bItIIon 1 .r.ft cIoeecI DIm'Ip nIgI'IIded to 3h:1v -'ope No TopeoII AwIIIbIe - amend eoII ~ wIh bIoItoIIdt 10tf11c. 0I'b. UIb .net Shop to IWmIIIn for poet mIr*1I'I VIe. 22.7~ NoIII: __ unt ~ rMY¥WY to _001"". ... unt colt upd8I 1G'2508 ~ ---YDfIIl MDt s ... s.t.tyaa-. ... * {rna. & iliilltllllllllli 1 eum s:JO s:JO (1.l o.mo.on of buIdInaa & ___ 33158) cf 0.26 87220 (2) ~oft..tl'l .... 7C01f 8.14 4298 (3) DemoIIlIon of en bIne n thtcIwI ... 32304 Id' 027 8722 (4) __ 1bnD..,.. -oaR ca. 43000 C'f 0.88 28380 (8) RIpcIIng .eocIde & ...-oaRdI28' 11 IaCft 288.00 31es tv) Sol l...ng 1 fLt.rnp SUm 1000.00 1000 1b) I Prw - oaR dIar COST PER HOUR 22 hoUr 272.50 SI85 [9h) ~ (10 tI:n'aIR) 22 I8CA\! 3150.00 7700 1t !I'oedclIIIt ....cIr'tg 22 ... 280.00 6180 19) GlnenllIIe ~ & tr8Ih nIn'ICMII 22.7 acre n5.00 1703 (1h) SutlldaI of R...... iIIIb. Coets ~.Wieet) .1M.84C1 --mcbllZlllkHI 41equ1p 2000 8000 (11) 162&45 R...... iIIIb I tupef'IiIion -10% of ~. eItIn'iaIIt 18285 179130 1~ COillliigehcy 17913 197043 33610 $10183 4..2 BurgiD No.2 Area Oonre ad JtecheratioB Cost EsdIIIate 32 APPROVED r=~~::r:'I"I!~~~~ ______~~~_D~IV,~, 501"iIIII&ooII611N1NG REClAMATlON ESTIMATE ...... P!pe2 MIne ()penIkIr. THic UWI MItaIa, LlC MIne ....,. FIIcImaa - HeacIIIa"e, HoiIt BuIldIng, Emerga"'Y HoiIt BuIldIng, Dry BuIldIng and ornce. &1bItaIIon. ShIIft ao.ur.. No fIDpeoI- anencI wIh 1or/ac bIoeoIIde 85rfac Ime to nuIraII!e dumpe, 5.3 acres Naee: aduII d 00IIII /NY YII'f to ... COI ..... r.t unit coet UDd* 10QM)6 ~ ~ I NcM s.r.ty aMea. .... -= (mila & ~ tIAittkII. 1 8UITI 500 500 (ill) DemoItIon~ ~& ___ 50800 cf -0.26 13208 (2) 0Im0IIl0n ~ /,.ma... 4El61f 6.14 28S5 m RIpping_ ...... D8R ~ 0.25 .,.. 288.00 72 (7) -=-roeda - D8R claar 0.25 697.18 174 (9l WMIe dI.mp ~ - D8R darJIr 2000 -c:Y OM 1320 (8) RIpping walle dumD topII 2_ 288.00 578 ~ I (85T'fac eg Rme) 3_ 85).00 Z5!5O (1e) ~ lime Into top e Inchea 3_ 30.00 90 (1c1) 1 llumP 8UITI 1000.00 1000 lib) TopeoII -D8Rdaiar 263 ICY" 0.88 174 (8J I PI1Ip - D8R ~ COST PER HOUR 5.3 .... 272.50 1444 (9h) I1WIUI'e (10 tIonI'8cra) 5.3 I1tcfe 3eO.00 1855 1t BroedcaIt eeedIng 5.3 .,.. 280.00 1484 (ill) GeraIII ... dea1up & ftIh rerno¥aI 5.3 75.00 398 (1hl SUbIoIIII or R«*rnetJon eo. - m;700 ".ate'''·)l1 2 .eQUip 2000 «JOO (10 31700 3170 34870 1~ COllti.. ". iCY 3487 Total 4.3 Apex No.2 Area Clesare aad ...... a6OD Cost Estimate 33 APPROVED ON. OIL GAS &MINING ..CIpenIIior. ~ UIIII MIIIIIa, UC MIne .... (PAIl): Dry sa.ck T.avt FIICIIy IX)GM FIe NmIbr. MIOaOO9 F.-..: None T~ ''''*''''''''''It~ -1 foot Durnp~W4h:1Y" V...... pondWnmIIIn poIIt mir*Ig Nomcnttw'l10IlClWdIIIutIed • .."onetlme(lncl.1 and tDpd ~& O.s.c~rOIId) Nak IIduIII unit COIla W*eoI""'. IaIt unit COlt UIIdIIe 1tl2!5IOe ~ ~ MInIt I Note - D8RcIIar 7an 8&)7.18 4880 (7) T-.-FInI! -DeRcIIar 7 acre 288.00 2016 (7h) ~ _IWCII- DeR dear 0.5 an 288.00 144 (7h) R~ _1'OIIdt- DeR dear 0.5 an 8&)7.18 348 (7) 1 ,Iuim MA'il ~.OO ~ {1bl TcpeoIJ -1ICf1IPIr' (8.5 lie) 13i'OO CY 1.oiIO 1~80 8 ..RIPPII'Ig ~ ... prtor to-.lns:! 10 acre 288.00 2880 ~ 1(100 IbWft n iObIIuitioi I 2ieauID 2000 4000 {1f} 46199 4620 1~ OOliali"auC) Tobli 4.4 Dry Stack Tailiap OoSDre aDd Reda-ating COlt Estimate 34 e APPROVED ,,- ~ ,~ i.;" , t D\V. OIL GAS & MiNlNG 121171200T line 0penIkr. 11nIIc Utah ...... uc line MIme F.-..-None 1.2 8CN ace.-... NdIInIed ElCIII--. INID ...... ~ wIIh no toptIoIlI'4IIIbIe [)gnp ~ flo 3tr.1v IIope North hIghwIII benched SouItI hIgtwIaII gnr1led variIInCe fur r...... iiiiliurl 8 acres Nc*t: __ mit coee. nllOl] to _ CCIIiCIIcI. lilt mit COIl tIDdIIte 1W2!W6 ~ UDHIl IfYDIl I. ... ~-D8RdazIw 1 IICiN 557.00 557 R!ppIng __ Uno tope - D8R dear 2 acre 288.00 578 .~. tIIIDCI!I* & .... -D8RcIaar 5 acre 288.00 1640 ttOCeIa roaca - D8R dear 1.2 IICiN 288.00 34e ( II &.faca cIn*'tIIIIa ' .....aIIoI. CIt ~ 230 LF 5.00 1150 (1} Sol 'I-.g 1 LumpSUm 500.00 500 (1b) nwve (101oMlcre) 8 IICiN 350.00 2800 (1n BroIM1caIt 8 acre 280.00 2240 (1g) GenentI_ d8Irq) & tr.h rwno¥III 8 acre 75.00 eoo (1h) SubID1III of RecIw. 1iiIIIoi. 00IeI (fur • '91- $10.201' mabllmllor. 21~_ 1000 2QOO (11) 12208 RecIam1iIIoI. eupervieIon -10'l10 of reclamatioll eeIImII.e 1221 13429 10'J(, ConIIi Iga'ICY 1343 14772 &cMIIe for 5 ~al3.2O'1' per ~ 2520 Total 1TJJD. ~...ty -.n In,.. 2012 dollars $17,300 A-. cod per dWurtIed 8CN :: $2,162 4.5 Zama Oay Pit Oosure and Red8.... CostEstiDIate 35 APPROVED IL GAS & MINING RECl.AMAllON SURETY ESTIMATE ... 1'ftIIIon 1211712007 MIne 0peIat0r 'J'IrjIc UIIIh MItaIs, LLC Mne Name Tride MIne OOGMtie Nunber ~4 PrepInd by UIIIh state DMIIan d 01, Gas & MInk1g 2 hladfJa.-. 2 hoIIit buIIcIqs, 0ftIce, ComprweoI ~ Dry BuIldIng, Wtbl't.1k, Fan No tapIoI-1I'IIInd wIlh 1otic bklIIoIIda 85T1c lime to IUnIIzIa clIrqJa, c:III8d !no top 81ncea. AI,.... ~ spur RI8ds nDIirned. [)gnp ~ to 3h:1v slope 10.1 acrw to ale COItdlb. 10'1& Col 0IgeI1CY Escalate for 5 y8'8 at 3.20'11) per ~ 4.6 Trixie Area CIosare 8IICI Rech·.... Cost Estimate 36 f ~~ ..... ~~ f',-""" , hi .-n", w ,;:. J DN. OIL GAS & MINING RECLAMATION SURETY ESTIMATE 121171200T Mine Operator Trntic Utah Metals, LLC Mine Name ApexIBurgen Mine DOGM file Number MI0491OO9 Pi .....s by UtIh s.t8 Oiviaion d Oil, Gee & Mining Reclamation Details: Summary Page Apex#2 Area Page 2 Burgen #1 Area Page 3 Burgen #2 Area P8Q!4 Dry stack FaCility Page 5 Zuma Clay Pit Page 6 Trixie Area Page 7 ..estimated total disturbed a.... for this mine - 90.4 Acres Apex #2 Area 5.3 Burgen #1 Area 17.8 Borgen #2 Area 22.7 Dry Stack Facility 26.5 Zuma Clay Pit 8 Trixie Area 10.1 Total Acra- 90.4 -Estimated ntCIamation cost for each area • x Apex #2 Mine Area $27,700.00 x Burgen #1 Complex Area $51,071.00 x Burgen #2 Complex Area $154,845.00 )C Dry Stack FaCility $42,199.00 Zuma Clay Pit $10,209.00 x Trixie Area $36,670.00 Subtotal $322,694.00 Equipment mobilization 5 equip 2000 $10,000.00 Subtotal $332,694.00 Supervision -10% of estimate $33,269.40 Subtotal $365,963.40 10% Contingency $36,596.34 Subtotal $402,559.74 Escalate for 5 years at 3.20% per ~:::r=--____---=~~ ___--=$68~~,665==",=80-:- Total $471,225.54 Rounded surety amount in year 2012 dollars $471,200.001 Average oost per dlsturbed acre = $5,212 37 APPROVED ...... fII ....c.-..., "'.....,CIIIICIUIIIIIIN ~ IX*I ...... _ .... (2) ...HlMo.n. .... CIIll*2DIIf.~ ...~ ..... (31 ...HlMQia ...... Clltl*... o:z:za_zaoo...... -."'" DM OIL GAS & MINING ..... t---..,tIII\WlIIM'~ .... -_1.F 8DIIIIaII~.tIII~'IIMoIadlla-1IIIIgIIt1ll'l ...... - ...__ ..... t---. 2II01.F 1IuIgIIt.t--..-12II'-.- -...... ~211111.1lNCInII-1W1.F...... (4) ...... -,0Iiis*...... ,OiIItl*2IIDI, - ~ BiI*II"t_.---.n.--. 0.. lIN + ,..12cfto21.GODcl ~·1lI' ...... tJIaIt·~~X21t*'-·'1pfl ~ ...ZlIII ...... tar~ ...... o-....,.IItd.O&P (7) ..... ZlIII. _1IDIIk 2l1li .... 2IIDI, CIt~... 2IIID M:'I'. eo 1t pull\, 21tCllpltl (7It) - ZlIII. llluellDllk 2IId -2IIDI, CIt ~--1IP'ICIIecI (II ..... ZlIII& _ ..2l1li ...... CIt~. mtIZ1110 IWC'I'. tOO ..... fit .... (V) _ZlIII& _1IDIIk2llll_", CIt~. mull ...... '-'.0""",, (l1li) ..... ZlIII .. _1IDIIk2lld _ 2IIDI, CIt~. muII ...... - 1.0 ""'" (12) ..... ZlIII .. llluellDllk2lld _2lI0II: CltC7'G _ .... ZIIIOII!IC'f. 2,DGDIt_ -...y. ~..,...,." (1b) DCXJIII __ ---.. ~ (1q DCXJlllIIII** _-_ S10IDrI ('kI) DCXJIII~_-~ (1e) DOCRIIIII**_-...... (11) OCXJM~_- __"...-. S1e_..-v (1t> DOGM __ ---~ (1b) DOCRI~_- ...-.. .. tnIIIt_ (11) DOGM~ ...... ----.t1nCltlllallloll 38