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AVCOLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />April 18, 2014 <br />Bradford Janes <br />Varra Companies, Inc. <br />8120 Gage Street <br />Fredrick, Colorado 80516 <br />Re: Varra Companies, Inc., Varra - Coulson Resource Project, File No. M- 2013 -064, <br />112c Permit Application Third Adequacy Review <br />Mr. Janes: <br />The Division of Reclamation, Mining and Safety (Division /DRMS) has reviewed the content <br />of the Varra Companies, Inc. 112c adequacy letter response dated March 25, 2014 for the <br />Varra - Coulson Resource Project, File No. M- 2013 -064 and submits the following comments. <br />The Division is required to make an approval or denial decision no later than May 5, 2014 <br />therefore; a response to the following adequacy review concerns should be submitted to <br />the Division as soon as possible. <br />6.4.7 Exhibit G - Water Information <br />20. Please provide mitigation measures for the potential groundwater mounding and <br />shadowing effects due to the proposed clay liner to be implemented and trigger points <br />which would put mitigation measures into effect. The mitigation measures must <br />include a scenario for the installation of a French drain to direct groundwater around <br />the clay liner and restore groundwater levels to the historic elevation in area of <br />groundwater mounding. <br />6.4.12 Exhibit L - Reclamation Costs <br />22. The Division recalculated the required financial warranty for the Varra- Coulson site at <br />$205,801.00 based on the information submitted by the Applicant. A copy of the bond <br />estimate is attached for review. <br />The Division accepts the dewatering cost estimate provided by Rick Elder with <br />Fisher Pumps located at 2024 East 8th St. Greeley, CO for the Varra - Coulson <br />project. <br />The Division recalculated the grading costs for the Varra- Coulson project based <br />on an average highwall height of forty feet (40), which was a reduction of five (5) <br />�@ coo <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director '. f0s_ 4,* <br />a�lgj6 , <br />