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<br /> <br />highwall, proceeding into Phase 1 of the BLM South Lot, is reduced to the approved 2H:1 V <br />grade by August 29, 2001. <br />No additional extensions will be granted for these dates. If the BLM has not accepted their <br />required bond for the South Lot by July 30, 2001, Then a financial warranty for the total <br />amount of both enclosed reclamation cost estimates, minus the amount currently held by the <br />BLM for the AM-03 area (588,876 + 5100,331 - 511,400 = $177,807) must be submitted <br />to DMG by July 30, 2001. If, by August 29, 2001, the BLM South Lot bond is still not in <br />place and the west highwall has not been reduced to the approved 2H:1 V grade, then an <br />additional financial warranty of 553, 870 will be required for backfilling the west highwall as <br />specified in tasks no. 1 and no. 2 of DMG's reclamation cost estimate dated December 14, <br />2000. In this case, that additional warranty will need to be submitted to DMG by August 29, <br />2001. Subsequently, upon completion of the BLM bonding process or completion of additional <br />reclamation at the site, the financial warranty amount may be reduced. <br />4. The enclosed bond calculations do not include provisions for reclamation of Phase 2 of the <br />BLM South Lot. C and J Gravel products, Inc. must commit to notifying DMG prior to <br />affecting Phase 2, so the reclamation cost estimate can be recalculated to account for any <br />additional cast that may be associated with mining of that phase. <br />5. All requirements of Rule 4.2.1(8) must be met before DMG can allow the BLM bond (511,400 <br />for the AM-03 initial 10 acre area and 5240,000 required for the BLM South Loi areal to <br />guarantee reclamation of the site in lieu of a financial warranty held by the State of Colorado. <br />If you need additional information, please contact me at the Division of Minerals and Geology, <br />Durango Field Office, 701 Camino del Rio, Room 125, Durango, Colorado 81301, telephone no. <br />970-247-5062. <br />Sincerely, <br />•~~/~~ <br />Steve S. Shuey <br />Environmental Prot Specialist <br />cc: Loren Wickstrom -BLM Durango Office <br />