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~~- i <br />RECEIVED <br />Applegate <br />Group, ~~~. <br />February 7, 2006 <br />FEB 1't 2006 v <br />Division of Mmetas ~~+u oeuiegY <br />~~~~~ ~.c~~ll/le~l l (~2.5 burl, l nc <br />Colorado Department of Natural Resources <br />b Division of Minerals and`Geology <br />Attn: Ms. Erica Crosby <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Surety Reduction (Partial Warranty Release) Request; Connell Resources, Inc.; <br />WellingtoaDowns Pit; M-1995-035 ~' <br />Dear Ms. Crosby: <br />The following information is being submitted on behalf of our client, Connell Resources, Inc., for the <br />Wellington Downs Pit (M-1995-035) in Larimer County, Colorado. The site is located mainly in the <br />Southwest.Y+ of Section 3, Township 6 North, Range.68 West of the 6a' P.M. <br />Mining at the site is complete and approximately 90 acres of the 109.5-acre site were disturbed by <br />mining activities. Reclamation activities have been concurrent with mining and, consistent with the' <br />approved reclamation'.plan, the site now includes a 65-acre lined water storage reservoir. The <br />remaining site acreage consists of reservoir shoreline, access roads, and previously undisturbed <br />areas. <br />Connell Resources, Inc. is requesting a surety reduction for the reclamation activities completed. <br />The water storage reservoir has been lined to the design standard referenced in the August 1999 State <br />Engineer Guidelines for Lining Criteria for Gravel Pits and approved by the Office of the State <br />Engineer (see attached letter). In addition, the reservoir shorelines and other disturbed areas have <br />been graded and seeded. Reseeding has also been performed over much of the previously disturbed. <br />and seeded areas, most recently in 2005. Additional reseeding and weed control will continue, as <br />needed, until the final reclamation standard is met. The approved reclamation plan also requires the <br />planting of 100 trees and 100 shrubs on the site. At this point in time, approximately 20 trees and <br />shrubs have been planted azound the perimeter of the water storage reservoir. <br />It is our understanding that a financial warranty of $139,000.00 has been posted for the Wellington <br />Downs Pit permit. The table below summarizes the existing mining disturbances and proposed new <br />financial warranty for final reclamation of the Wellington Downs Pit. <br />n/o / ~ //~NLS <br />~'~` I~-4e ' ol~aa~~oo7 <br />7499 West 120th Avenue, Suite 200 (303) 452-6611 • Fax (303) 452-2759 _ <br />Denver, Colorado 80234-2759 ~ ~ www.applegategroup.com <br />