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COLORADO <br />Division of Reclamation, <br />A&V Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />May 13, 2015 <br />Tom Schlosser <br />Schlosser Incorporated <br />755 U.S. Highway 385 <br />Burlington, CO 80807 <br />Re: File No. M-2014061, Schlosser Pit 1, 112c Decision Letter - Financial and Performance Warranty <br />Request - Construction Material Operation <br />Tom Schlosser: <br />On May 12, 2015, the Division of Reclamation, Mining and Safety (Division) approved your 112c mining permit <br />application. The conditions to the approval are noted below: <br />Stipulation No. Description <br />1) The Operator shall request, in writing to the Division, that the financial warranty be <br />increased prior to commencing mining operations in additional phase(s). This request <br />shall include an updated reclamation cost of the additional acreage. Prior to approval, the <br />Operator will need to post the additional associated Financial Warranty, which will be <br />calculated by the Division and issued through a Surety Increase, for the additional <br />phase(s). <br />Commitment No. Description <br />1) The Operator has committed to obtaining a soil test after final grading and topsoil <br />replacement has been achieved. The Operator shall submit the test results and proposed <br />application of mulch and fertilizer to the Division for approval. <br />The amount of financial warranty set by the Division for this operation is $111,300.00, which covers the <br />maximum allowed disturbance of 20 acres (Phase 1). You must submit a financial warranty in this amount and a <br />performance warranty in order for us to issue a permit. In the event you have requested a financial warranty form, we <br />have enclosed it in this letter. If you have not, please select a type of financial warranty from Rule 4.3. Then contact <br />us so that we can provide you with the appropriate warranty form. We have enclosed a performance warranty form <br />with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND <br />PERFORMANCE WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE <br />ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <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. Hickentooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />,OV -Co <br />o <br />VJR76 , <br />