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:{ MINE ID # OR PROSPECTING ID # M-77-304 INSPECTION DATE_NOVember 7, 1997 INSPECTOR'S INITIALS TAS 1. The site inspection was conducted as part of the Division's current evaluation of the reclamation cost necessary to reclaim the Rex Quarry to rangeland. 2. Based on field observations, field measurements, and measurements taken from a 1995 topographic map provided by the operator, the Division has calculated a total reclamation cost of $1,288,800 for the Rex Quarry. (See attached report for itemized costs). This cost is significantly higher than the existing Financial warranty of $100,860 provided by the operator and demonstrates that the existing financial warranty is insufficient for the Division to perform reclamation. Therefore, in conformance with Rule 4.2.1(2) of the Construction Material Rules & Regulations, the Division requests that the operator submit either a replacement financial warranty of $1,288,800 or a supplemental financial warranty of $1,187,940 within 60 days of receipt of this report. Please see page 3 for corrective actions. 3. In the event that the operator disagrees with the reclamation cost of $1,288,816 calculated by the Division, the operator may provide a detailed reclamtion cost estimate with itemized costs for backfilling & grading, topsoil replacement, revegetation, demolition, equipment mobilization/demobilization, indirect costs, and any other costs necessary to achieve a post-mining land use of rangeland. Although not required, the Division recommends that the operator include with the reclamation cost estimate supporting information such as a current topographic map of the permit area, cross sectional volumes of overburden and pit disturbances, and an itemized list of all steel or concrete structures to be demolished. The operator's detailed reclamation cost estimate should be received in the Office of the Division as soon as possible so that negotiations on the cost details can be completed early in the 60 day time period and a final figure can be agreed upon before the corrective action deadline specified on page 3 of this report. If final agreement on the reclamation cost and bond amount cannot be reached by the corrective action deadline, then the operator may request a hearing on this matter before the Colorado Mined Land Reclamation Board. I & E Contact Address NAME Nathan Barton OPERATOR Pete Lien 6 Sons. Inc. STREET P.O. Box 767 CITY/STATE/ZIP Raoid City. SD 57709-0767 Certified Mail No. Return Receipt Requested cc: Carl Mount, DMG Barb Chiappone, DMG Rob Kisner Colorado Lien Company P.O. Box 1961 Fort Collins, CO 80522 (Page 2) • ^ CE ^ BL FS ^ HW ^ HMWMD (CH)