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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 COLORADO <br /> Denver,Colorado 80203 D I V I S I O N o f <br /> RECLAMATION <br /> Phone:(303)866-3567 <br /> FAX:(303)832-8106 MINING <br /> —&- <br /> SAFETY <br /> April 1,2014 John Hickenlooper <br /> Governor <br /> ff Executive Don Loloff 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(SE0)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 />