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LJ DEVELOPMENT, INC <br />159 TIFFANY CT <br />PUEBLO, CO 81005 <br />PHONE: 719-2fW-9424 <br />FAX: 719-583-0768 <br />Larry Oehler <br />Division of Minerals & Geology <br />1313 Sherman Street, Rm 215 <br />Denver, CO 80203 <br />June 20,2005 <br />RE: Progress Report to DMG for M-1977-321 Native Pit Summit Brick & Tile <br />Dear Mr. Oehler. <br />This letter is afollow-up to our last letter asking for a 60 day extension to comply with problems 1 and <br />2 as noted in the last inspection report, you wrote on Feb 17, 2005. Under problems/possible <br />violations and corrective actions you have two items as follows: <br />1. Concerning the east highwall which is nearly vertical with a height of 25-35 feet, located <br />next to a City of Pueblo street, and the concerns of possible off site damage. <br />2. The $6,500 Reclamation bond held by the Division of Mineral and Geology is not adequate <br />to cover all reclamation costs. <br />Corrective actions taken: <br />Item #1 <br />The Company (Summit Brick) has begun to back fill the highwall area that you noted in you <br />report-and they will continue to do so until the area is compliant to a 3H:1 V-or flatter gradient along <br />the area that you pointed out may have been unstable. Please continue to attached photos to show the <br />before and after of highwall. We believe that at the vertical height we are now at is sufficient to <br />stabilize the highwall and to prevent stot7nwater from eroding the highwall thus preventing slide of the <br />highwall. The east wall of the pit will be mined and the back sloped in a similar matter for the life of <br />the mine. <br />