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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-1984-001 <br />INSPECTION DATE: 6/15/04 <br />INSPECTOR'S INITIALS GRM <br />The fmal issue discussed was the way reclamation bonding works for a permit. The current bond was recalculated in <br />January of 2003 to be $20,639.00. The bond is based on several tasks to meet the current Reclamation Plan. As <br />explained during the inspection, should the new operator complete these tasks, the bond can be reduced accordingly. <br />The site cannot be released until vegetation is established and at least matches the surrounding area in density and <br />diversity. But all earthwork and initial seeding costs can be reduced significantly. Also, it is important to <br />understand that the CIRCES program used by the Division is based on the costs averages for what the state must pay <br />to accomplish certain tasks, not what it costs the operator. Obviously, it is cheaper for the operator to accomplish <br />these tasks. Staff has the ability to adjust volumes, equipment used, seed mixes and tasks involved but cannot <br />change equipment rates, seed costs or other fixed parameters of the program. Per the operator's request, please find <br />enclosed a copy of the most recent bond calculations. As a side note, the original operator was to start stabilization <br />work on Area B so this task was left off of the newer calculations. Any request for a bond re-calculation may have <br />to include the slope task if not addressed within a TR for this issue. <br />No issues or problems were noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3r° Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Errc Koehler ^ BL. <br />OPERATOR: Unaweeo Ventures. LLC ^ FS <br />STREET: 305 Society Drive, Unit D-1 ^ HW <br />CITY/STATE2IP: Telluride. CO 81435 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ OTHER <br />