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-2- with this lengthy period in which to supply a replacement, the operator still had failed to submit a financial warranty, and thus the civil penalty sanctions referred to by Mr. Mosch wer ;eased by the Board. Given the potentially serious consequences of a ed cyanide operation and the very high cost of reclamation of an a doped site, it certainly was not unreasonable for the Beard to use the civil penalties, as authorized under the statute, as a tool to encourage Compliance with the law. Unfortunately, after almost eight months, we have yet to receive a new financial warranty for this site. Financial warranties required under the law for reclamation are a critical part of our program and tfie protection of the state as a whole. The Board and Mined Land Reclamation Division are very sensitive to the plight of the entire mining community, especially the small miner ("mom and pop" operations) in the area of reclamation bonding. The current law allows for a variety of financial warranty types (bond, certificate of deposit, irrevocable letter of credit, first deed of trust, etc.) and also assists the small operator by limiting the warranty to E5, 000.00 for operations on less than ten acres (E5,000.00 is often insufficient to reclaim these operations). As a 1 egi sl ator, I am sure you are aware of the general i nsurance i ndustry crisis regarding coverage of liabilities. Costs have risen, and in some cases insurance bonding is simply unavailable. The Division and Board have adopted a position of maintaining as much flexibility as possible, consistent with the statute, while at the same time fulfilling our responsibility to protect the interests of the citizens of Colorado. A solution to this problem is not easy because of the larger insurance problem. I would be pleased to work on any ideas you might have to resolve the difficulties in this area. The case of Mr. Mosch illustrates that the Mined Land Reclamation statute provides the Board with the necessary latitude to solve these problems. A E200.00 bond for closure of a mine is certainly not excessive and demonstrates that the Board responded to Mr. Mosch's concerns fairly and within their statutory authority. If you have any further questions about these issues or any other related to Mined Land Reclamation, please do not hesitate to contact me. Sincerely, DAVID C. SHELTON Director DCSltmb cc: 14r. Al Mosch Ms. Diane Rees Dave Cole Mined Land Reclamation Board Greg Romberg Clyde Plartz 6860E