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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />March 20, 2014 <br />Demetrio Valdez <br />Valle Escondido <br />P.O. Box 84 <br />Conejos, CO 81129 <br />RE: Transfer of Permit and Succession of Operator (SO -01), Financial Warranty, <br />Valle Escondido, Valdez Gravel Mine, Permit No. M- 1991 -133 <br />Dear Mr. Valdez: <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pirieda <br />Director <br />As part of the review process of your request to transfer the permit for the Valdez Gravel Mine <br />to Demetrio A. and Olive K. Valdez, dba Valle Escondido Ranch (SO -01), the Division has <br />reviewed the current cost of reclamation totaling $24,407.62. The Division provided a copy of <br />the reclamation cost estimation with the inspection report generated from the November 19, <br />2014, site inspection, signed March 20, 2014. <br />Therefore, the existing $16,465.41 financial warranty is insufficient to ensure the completion of <br />reclamation and the Division cannot approve SO -01 until the financial warranty is deemed <br />adequate. Please submit $7,942.21 additional surety, to ensure a total financial warranty not <br />less than $24,407.62, or advance the reclamation and thereby render the existing financial <br />warranty adequate. <br />Please submit financial warranty documents to the attention of Barbara Coria. If you have any <br />questions regarding the proper execution of warranty documents, please contact Ms. Coria at <br />phone (303) 866 -3567, extension 8148. Please contact Wally Erickson, phone (970) 247 -5469, <br />with questions regarding the reclamation cost estimation. <br />Sincerely, <br />Wallace H. Erickson <br />Environmental Protection Specialist <br />Ec: Demetrio Valdez, Valle Escondido <br />Barbara Coria, DRMS Denver <br />Russ Means, DRMS GJFO <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines <br />