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34 <br /> United States Department of the Interior <br /> BUREAU OF LAND MANAGEMENT <br /> Tres Rios Field Office <br /> 29211 Highway 184 <br /> Dolores,Colorado 81323 <br /> www.blm.gowcolorado <br /> In Reply Refer To: <br /> 3576(LLCOS01000) <br /> COC 64651(IS)and COC 64651(21) <br /> November 22,2021 <br /> Mr.John Gilleland <br /> C&J Gravel Products,Inc. <br /> 27661 US Highway 160 <br /> Durango,CO 81301 <br /> Subject:Mineral Materials Contract Termination COC 64651(18) <br /> New Contract Transferal COC 64651 (21) <br /> Dear Mr.Gilleland: <br /> This is to inform you that the BLM will terminate your existing contract and issue a new contract <br /> for mineral materials in the Montoya Pit.In 2018,the Bureau of Land Management(BLM) <br /> issued a contract for the sale of mineral materials(2018 Contract)to CW Gravel Products <br /> (C&J).This contract was assigned B LM case#COC 64651 (18).Under the terms of the 2018 <br /> Contract,the United States agreed to sell to you 3,000,000 tons ofminerai from the Montoya Pit. <br /> As part of the terms of the 2018 Contract,C&J must reclaim all disturbance as authorized under <br /> the 2018 Contract and pay for all mineral materials that they have sold or personally purchased. <br /> The new contract,BLM case#COC 64651(21),the United States is agreeing to sell you <br /> 3,008,247 tons of material from the Montoya Pit and is good for 5 years with the possibility of <br /> extension.COC 64651(21)has conditions of approval,which are attached to the contract. <br /> Advance payments as described under section 3 of both contracts is discussed below. <br /> The gravel deposit undulates in quality and thickness and is difficult to accurately access reserve <br /> volumes.To date,you have mined sections of the approved 2018 Contract area to the shale layer <br /> as well as dug a few test holes within the approved 2018 Contract area to assess the thickness of <br /> the deposit and overburden.As a result,you have discovered that sections ofthe deposit are <br /> altered in a way which makes the material difficult to use and there is significant overburden in <br /> the majority of the 2018 Contract area.The evidence clearly demonstrates that the 2018 Contract <br /> area does not contain 3,000,000 tons of mineral material. <br /> Reclamation <br /> Per BLM policy(BLM H-3600-1,2016,p.38),an operator is required to complete all <br /> reclamation before a contract can be terminated early.Upon termination of the 2018 Contract, <br />