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Mr. Michael Miclette <br />STATE CF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Governor <br />Department of Natural Resources <br />Mike King <br />1313 Sherman St., Room 215 <br />Executive Director <br />Denver, Colorado 80203 <br />C O L O R A D O <br />Phone: (303) 866 -3567 <br />D I V I S I O N O F <br />FAX: (303) 832 -8106 <br />RECLAMATION <br />MINING <br />tebruary 11,-2013 <br />SAFETY <br />Mr. Michael Miclette <br />John W. Hickenlooper <br />Premier Silica Sand <br />Governor <br />3250 Drennan Industrial Loop <br />Mike King <br />Colorado Springs, CO 80935 <br />Executive Director <br />Loretta E Rneda <br />Director <br />RE: Reduction in Financial Warranty for Succession of Operation Revision Approval, Jemadojin Sand Mine, <br />Permit # M- 2006 -017 <br />Dear Mr. Miclette: <br />On February 7, 2013, the Division conducted an inspection of your site to verify current disturbance of the site so the <br />approval of succession of operation revision could be finalized. The site has been completely reclaimed and appeared <br />to be in compliance with the approved reclamation plan. The only reclamation liability left is the cost of re- <br />vegetation. <br />In order to execute a reduction in financial warranty for 10 maximum affected acres at any given time, the operator <br />will need to first submit a replacement warranty in the amount $243,500.00. Once the replacement warranty is <br />posted, the succession of operation application will be completed. Then, Premier Silica will submit a technical <br />revision reducing the affected acres from the current 34 acres to 10 acres, by providing a new mining and <br />reclamation plan with the revision. The total maximum affected acres for the life of mine will remain at 34 acres. <br />After the technical revision is approved reducing the affected acres, the operator will submit a surety reduction <br />request in accordance with Rule 4.17 of the Construction Materials Rules and Regulations. Once the request is <br />submitted, the Division will approve the reduction and the operator can post a rider to the existing warrnty to lower <br />it from $243,500.00 to $64,439.00. <br />If you have questions, please contact me at 303 - 866 -3567 ext 8129. <br />Sincerely, <br />Berhan Keffelew <br />Environmental Protection Specialist. <br />Enclosures: Financial warranty Calculation <br />Inspection Report dated 2/7/2013 <br />CC: Barbara Coria <br />Tony Waldron <br />Tom Kaldenbach <br />Office of <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />