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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />November 24, 2014 <br />Rick Ensminger <br />3500 Highway 6 <br />Haxtun, CO 80731 <br />Re: Ensminger Pit #2, Permit No. M- 2010 -036, Financial Warranty Increase (Associated with SO -02), SI- <br />01 <br />Dear Mr. Ensminger: <br />On September 19, 2014 the Division of Reclamation, Mining and Safety (Division) received your completed <br />Application for Transfer of Mineral Permit M- 2001 -052 and Succession of Operators (SO). During the review <br />period of the SO, the Division is required to recalculate the current reclamation cost estimate of the Ensminger Pit #2 <br />(f.k.a. the Hansel Pit # 1) as per Rule 1.12.1(1). <br />The Letter of Credit, in the amount of $41,829.00, held for reclamation tasks of the site has been found to be an <br />inadequate amount. The Division has prepared a new reclamation cost estimate based on the submitted and approved <br />mining and reclamation plans. The Division calculated the cost to reclaim the proposed affected disturbance of 19.4 <br />acres (maximum allowed; associated with the first two mining phases) to be $47,500.00. This is an increase of <br />$5,671.00 from the current financial warranty held. A copy of the calculations used to determine the financial <br />warranty is attached for your review. <br />In accordance with Rule 4.2.1(2), the Operator is required to submit this additional amount within 60 days <br />of this letter (January 23, 2014). If you wish to submit a different type of financial warranty, there are various <br />application forms on our website at mining.state.co.us. For questions regarding financial warranties, please <br />contact Barbara Coria, the Division's Financial Assurance Specialist, at (303) 866 -3567 x 8148. <br />For all other questions, please contact me at Division of Reclamation, Mining and Safety, 1313 Sherman Street, <br />Room 215, Denver, CO 80203, by telephone at 303 - 866 -3567 x8132, or by email at elliott.russellgstate.co.us. <br />Sincerely, <br />%q� <br />Elliott R. Russell <br />Environmental Protection Specialist <br />Certified Mail No.: 7012 3460 0000 6385 0911 <br />Return Receipt Requested <br />Cc: Tom Kaldenbach; DRMS <br />Barbara Coria; DRMS <br />�� og co�0 <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 <br />.1876 <br />