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March 23, 2016 <br />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 />Mr. Joseph E. Westhoff <br />Westhoff Farms <br />2823 CR 3 <br />Wiggins, CO 80654 <br />Re: Westhoff Farms, Permit M-1987-166, Financial Warranty Increase, Revision SI01 <br />Mr. Westhoff: <br />The inspection of the Westoff Farms permit conducted on March 15, 2016 noted that the current financial warranty of <br />$3000.00 is no longer sufficient for the State to complete reclamation if required. There are several reasons that the <br />existing bond is insufficient at this time. The bond amount has not been adjusted since the permit was issued in 1987 — <br />almost 30 years - and all associated costs have increased significantly over that time. <br />Also significant is that the mining plan as approved called for mining to 3:1 slopes, however, the existing mine face at <br />the site is a crescent-shaped vertical high -wall approximately 525 feet long and averaging approximately 25 feet in <br />height. The creation of this high -wall necessitates a significant bond adjustment due to the cost to rebuild the existing <br />vertical high -wall to obtain the 3:1 slope needed for final reclamation. <br />Therefore, on March 23, 2016 the Division of Reclamation, Mining and Safety increased the current Financial Warranty <br />for this permit to $54,120.00, in accordance with Rule 4.2.1 of the Rules and Regulations. This is an increase of <br />$51,120.00. <br />For this bond adjustment DRMS made the assumption that the approximately 54,000 cubic yards of material needed to <br />reclaim the high -wall to 3:1 slope would be available on site, either from the currently permitted area, or through the <br />amendment of the existing permit. Obviously, if the material required to rebuild the slopes needed to be imported from <br />off-site, the cost would increase again significantly. <br />The Division ordered amendment of the current Financial Warranty, or submittal of a new Financial Warranty reflecting <br />the increase, is due within 60 days from the date of this letter. If you wish to submit a different type of Financial <br />Warranty, please contact Bonding Specialist Barbra Coria so that she may send you the applicable form. <br />If you have any questions, please contact me. <br />Sincerely, <br />Cwt ihlif.-- <br />Eric C. Scott <br />Environmental Protection Specialist <br />cc: Barbara J. Coria, DRMS <br />Enclosures: CIRCES worksheets for dozer, reveg, mob/demob, cost summary <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 1 Mike King, Executive Director 1 Virginia Brannon, Director <br />