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COLORADO <br /> a Division of Reclamation, <br /> Mining and Safety <br /> Department of Natural Resources <br /> Doug Smith <br /> Oxbow Mining, LLC. <br /> PO Box 535 <br /> Somerset, CO 81434 <br /> July 14,2021 <br /> Re: Elk Creek Mine (C-1981-022) <br /> Proposed Surety Increase(SI-1), and Opportunity for Informal Conference <br /> Dear Mr. Smith, <br /> The Colorado Division of Reclamation,Mining and Safety(Division)is proposing a bond <br /> adjustment/surety increase(SI-1)for the Elk Creek Mines(DRMS Permit No. C-1981-022). <br /> During the Division's Mid-Term Review No. 8 (MT-8),dated 7/13/2021,the site-wide <br /> Reclamation Cost Estimate(RCE) for the Elk Creek Mine permit was updated.Based on updated <br /> unit costs for materials,equipment and labor,the new estimated direct cost for all reclamation <br /> tasks is$1,974,914. Indirect costs(consisting of overhead and profit costs and the legal, <br /> engineering,and project management costs),are calculated based on standard factors and added <br /> to the direct costs,for an estimated total reclamation cost of$2,512,396. <br /> Prior to the MT-8 recalculation of the RCE the required surety was $2,039,068.06. <br /> The Division is proposing to increase the required surety by$473,327.94,to $2,512,396,in order <br /> to cover the increase in the estimated total reclamation cost.The proposed increase will not <br /> require any changes to the current bonding arrangement. <br /> In accordance with Rule 3.02.2(4)(a),the Division hereby notifies Oxbow Mining,LLC. <br /> (OMLLC)of this proposed increase in the required surety,and further provides OMLLC with an <br /> opportunity for an informal conference regarding the adjustment. If OMLLC wishes to participate <br /> in an informal conference,the Division asks that a written request be submitted by July 30,2021. <br /> If a request for an informal conference is not submitted by this date,the Division will assume that <br /> OMLLC declines to participate in an informal conference and the decision to adjust the required <br /> surety will be formally proposed. <br /> Feel free to contact me by phone or email for clarification. <br /> Sincerely, <br /> Leigh Simmons <br /> Environmental Protection Specialist <br /> o� COS <br /> 1313 Sherman Street, Room 215, Denver,CO 80203 P 303.866.3567 F 303.832.8106 https://colorado.gov/drms <br /> Jared S. Polis,Governor I Dan Gibbs, Executive Director I Virginia Brannon, Director <br /> l876 <br />