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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Rewurces <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />March 20, 2007 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />M[NING <br />- &- <br />SAFETY <br />Bill Ritter, p. <br />Governor <br />Harris D. Sherman <br />Mr. Frank Leone, Jr Executive Director <br />Leone Sand and Gravel, LLC Ronald w. canany <br />502 S. Walnut Street Division Director <br />Tnttldad, C0 81082 Natural Resource Trustee <br />Re: File No. M-2006-085, Leone Gravel Pit #2, 112c Decision Letter -Financial and Performance Warranty <br />Request -Construction Material Operation <br />Dear Mr. Leone, Jr: <br />On March 20, 2007, the Division of Reclamation, Mining and Safety approved your 112c mining permit application. <br />The amount of financial warranty set by the Division for this operation is $57,664.00 for phased maximum disturbance <br />of 20 acres at any given time, You must submit a financial warranty in this amount and a performance warranty in order <br />for us to issue a permit. In the event you have requested a financial warranty Form, we have enclosed it in this letter. If <br />you have not, please select a type of financial warranty from Rule 4.3. Then contact us so that we can provide you with <br />the appropriate warranty form. We have enclosed a performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me at (303) 866-4072. <br />Sincerely, <br />Berhan M. Keffelew <br />Environmental &otection Specialist <br />Enclosure <br />cc: Joe P. Gagliano, L J Development, Inc. <br />Tony Waldron, DRMS <br />Office of <br />Mined Land Rxlamation <br />Denver Grand Junction Durango <br />Office of <br />Active and InaRive Mines <br />