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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 />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />April 1, 2014 John Hickenlooper <br />Governor <br />Mike King <br />Don Loloff Executive Director <br />Loloff Construction, Inc. Loretta Pineda <br />P.O. Box 518 Director <br />206 Hill St. <br />Kersey, CO 80644 <br />Re: Loloff Mine, Technical Revision Approval, Permit No. M- 1985 -112, Revision No. TR -01 <br />Dear Mr. Loloff: <br />On April 1, 2014 the Division of Reclamation, Mining and Safety (Division / DRMS) approved the <br />Technical Revision application submitted to the Division on July 2, 2013, addressing the following: <br />Mining and Reclamation Plan revision to dry mine (dewater) site. <br />The terms of the Technical Revision No. 1 approved by the Division are hereby incorporated into <br />Permit No. M- 1985 -112. <br />The revised financial warranty amount of $689,552.00 exceeds the $58,200.00 surety <br />performance bond currently held by the Division. Please submit a rider or a new financial <br />warranty per Rule 4.2 in the amount of $631,352.00 within 60 -days (June 2, 2014) from the <br />date of this letter. The revision will not be final until the bond is approved by the Division. <br />The commitment and conditions of the Division approval are noted below. Please note that all <br />other provisions of Permit No. M- 1985 -112 remain in full force and effect. <br />Commitment No. 1 <br />Loloff Construction, Inc. will provide monthly groundwater elevation data for the surrounding <br />groundwater wells and western Derr Pit piezometers in future annual reports. A trigger point of 2 <br />feet change from historic groundwater levels was established as part of TR -01. The trigger point <br />elevation must be included in future annual reports. <br />Stipulation No. 1 <br />Loloff Construction, Inc. will purchase and decree to the Office of State Engineer (SEO) adequate <br />water rights to cover the remaining 15.4 acres of exposed water in Phase 2 within 120 days from <br />the approval date of TR -01. The 15.4 acres of exposed water surface in Phase 2 will require an <br />additional 45 acre -ft (2.92 acre -ft per acre of exposed water surface). <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction - Durango Active and Inactive Mines <br />