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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, CO 80203 <br />September 1, 2015 <br />Jim Kiger <br />Oxbow Mining, LLC. <br />P.O. Box 535 <br />Somerset, CO 81434 <br />RE: NOI X-2012-223-11 <br />Bond Release Request (SL -1) <br />Adequacy Comments <br />Dear Mr. Kiger, <br />The Division received a request for release for Notice of Intent to Explore NOI X-2012-223-11. <br />Based on a review of the above referenced NOI, the Division has the following comments: <br />The Division currently holds a Corporate Surety in the amount of $386,931.17 of which <br />$386,931.17 is required for remaining reclamation of the activities associated with the NOI. A <br />total of 43 drill holes were permitted to be drilled under this NOI. Based on the approval of X- <br />2012-223-11 no holes were to be converted to monitoring wells. <br />The Division received an 180 -day report and a Drill hole abandonment report. Based on the <br />reports submitted a total of 24 holes have been drilled, abondoned and reclaimed. <br />Based on the review conducted of the current status of the NOI for bond release, the Division <br />has the following comments: <br />Please submit a Final Reclamation Report found on the Division's website that includes <br />all sites and holes reclaimed and requested for release. <br />An on -the -ground inspection showed that all holes have been adequately abandoned and <br />associated disturbances have been reclaimed with the exception of revegetation associated <br />with Sites OM -12-35, OM -13-30, OM -13-18, OM -13-31, OM -13-32, OM -13-13, and OM -12-27. The <br />revegetation reclamation liability at each site for a total of seven sites will remain. The <br />Division currently holds a Corporate Surety in the amount of $386,931.17 of which the Division <br />approves the release of $382,990.17 under SL -1. $3,941.00 is being held after the approval of <br />SL -1 for revegetation and weed management costs. This release represents a partial bond <br />release of $382,990.17. <br />pF COlO <br />nO <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 * fg76 <br />