2014-12-02_REPORT - M1986102 (3)

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3. Reclamation compliance is detailed in attached Storm water Report submitted earlier this year (Summer 2014). See copy attached. 4. Financial Warranty ($12,000) has been deemed inadequate as of summer of 2014. However, an extension on meeting the terms of the new bond ($16,497) was granted from Kate Pickford (see below). In conversations with Kate Pickford at the Division of Reclamation, Mining, and Safety earlier this year, we discussed and received a 60 day extension on the increase for the Financial Warranty. However, due to complications in property negotiations within the family that have proved to be nearly insurmountable, we are hereby requesting an extension on this requirement, retroactively effective from our anniversary of Sept. 4, 2013 to Sept. 4, 2018. This would correspond to the "Temporary Cessation" timeframe as outlined above. We feel this is a fair and reasonable window in which to come to terms with the increased fees. We understand that the granting of the Temporary Cessation status is supposed to be contingent on satisfying other outstanding requirements, in particular, the increase in the amount of the Financial Warranty. However, we hope your office agrees with the logic in granting the TC at the current valuation and will see clear to giving the Collins Family some much needed breathing room for working through some difficult emotional territory and finding a pathway for securing the necessary financial backing from a local institution. We are in discussions with the Citizens State Bank of Ouray ( Naturita, Colorado branch) regarding qualifying for a loan to secure the bond. Since the downturn in the economy, such loans have been much more difficult to secure, as I'm sure your office is aware. However, in our last meeting with the VP of the bank in Naturita, we felt we had turned a corner and we would be granted a loan with the proper collateral, documentation, and the agreement for all parties to sign off on the loan. The map of the operation submitted previously still pertains. The mine is part of a property owned by the Collins Morehead LLC. The LLC was established in January of 2010 and purchased the property from the Collins Living Trust, the former owner. I am co- trustee of the LLC along with my sister, Lois Morehead (Chico, California). Our mother, Kathryn O. Collins, passed away January 10, 2004. Respectfully submitted, Dan Collins Cell: 480 - 206 -2037 Email: dan.collins@asu.edu Attachments: annual fee (check for $323.00), completed report request 1 IOc Annual Report Copy of 2014 Stormwater report 2