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nE~l~~~ OFFICE STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman SL, Room 216 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 July 19, 2002 Charlie Higby BLM San Juan Region 15 Burnett Court Durango, CO 81301 R~~RI'.r~ r~-~ JUL 2 4 2002 OivisionarMic-„-;,,,,,,~ , Io BY RE: Clarification to Discussion Items from 6/13/02~and Inspection Report, ~~ Sunnyside Gold Corporation, Sunnyside Mine, Permit No. M-1977-378r~ DIVISION O F MINERALS GEOLOGY RECLAMATION MINING•SAFETY Bill Owens Governor Greg E. Walther Executive Director Ronald W. Cottony Acting Division Director Dear Mr. Higby: ~.. Please find enclosed, copy of the inspection report generated from the 6!13102 inspection of the Sunnyside Mine, located approximately 6 miles NW of Silverton, Colorado. During the on-site meeting, topics of discussion included responsibilities of a permit holder for a DMG reclamation permit, responsibilities of a landowner for lands enclosed within a DMG permit area, post-mining land use, and requirements of the reclamation plan. Responsibilities of the Permit Holder The permit holder is responsible to ensure that mining and reclamation activities occur in accordance with the conditions of the approved reclamation plan and the Colorado Mined Land Reclamation Act, 34-32-101 et sea., C.R.S. 1973 as amended (the "Act"), and the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal and Designated Mining Operations, promulgated May 1977, amended August 2001 {the "Rules"!. The Act and Rules anticipate that private and public lands will be affected where mineable resources exist. However, the Act and Rules provide reclamation requirements to ensure that affected lands are reclaimed to a beneficial land use. Any permit holder is obligated to satisfy the performance standards of Rule 3.1. Financial warranty cannot be released and the permit terminated until reclamation has been completed in accordance with the performance standards of Rule 3.1, and in accordance with the approved reclamation plan, and all applicable sections of the Act and Rules. Responsibilities of the Landowner Any applicant who applies for a reclamation permit must demonstrate legal right of entry for the proposed lands, to enter those lands and conduct mining and reclamation activities. However, the Act and Rules do not hold-the landowner responsible for compliance with the conditions of the reclamation plan or the performance standards of the Act and Rules, unless the landowner is also the permit holder. Subsequent to termination of the DMG reclamation permit and release of the performance and financial warranties, the landowner is responsible for stewardship of his or her lands.