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// • III IIIIIIIII IIII III • STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Denanment of Natural Resour[es 1717 Sherman 51., Room 215 Denver, Colorado R0203 Phune: 13031 Rh6-356: FAX: (3031 03?-tSIOh D I v 15 1 0 N O F MINERALS GEOLOGY RECLAMATION MINING•SA FETY Bill Owens Co~ernor April 6, 2000 Greg E. Walther Executive Duector Ms. Angela Bellantoni Mkhael B Long Fremont Paving and Redi-Miz, Inc. o~~~>ion Director 839 MacKenzie Ave P.O. Box 841 Canon City, Colorado 81215 RE:.Fremont Paving and Redi-Mix Pit (Permit M-1988-093 Adequacy review of proposed Technical Revision I Dear Ms. Bellantoni: The Division has reviewed Fremont Paving's proposed Technical Revision to the permit for the above referenced pit and has identified the following adequacy concerns: BONDING: As in all cases of phased mine plans and phased bonding, the Division requires [hat the sufficiency of the Financial Warranty be assured as succeeding phases are mined. The current mine plan contains no commitment beyond commencing reclamation of Phase I at [he time mining is initiated in Phase 2. Since reclamation of Phase I may take place over a number of years while mining is being advanced in Phase 2, the site may become increasingly under bonded and within a relatively short time. The following alternatives should be considered. Fremont Paving could commit to post the full amount of the Phase 2 Financial Warranty prior to beginning mining activities in Phase 2. Alternatively, Fremont Paving could provide, as pan of this technical revision, a plan in which the company commits to maintain a specified relationship between the bonding provided, the amount of mining disturbance allowed in Phase 2 and the extent and stage of reclamation reached in Phase I. BONDING: The current Financial Warranty totals $24,600.00. The level of bonding you indicate should apply to re-designated Phase 1 is $20,330.00. The mining related disturbance indicated on the map supplied with the most recent annual report appears to extend across the old and new Phase I boundary. As a result, the Division would be reluctant to approve any request for partial bond release in the event the Division approves the re- designation of the Phases. Please indicate if it is your intention to request a panial bond release upon approval of the proposed re- designation of the mining phases or if you intend to leave the current Financial Wartanty in place. PHASE MARKERS: The Division understands that you are proposing the mark the boundary of Phases I and 2 using the overhead power line. While this appears to be a convenient dividing line, the Division feels that the boundary should also, as a practical matter, be marked at ground level so that the limits of Phase I can be clearly seen by the equipment operators. According to the map supplied with the most recent annual report, some mining related disturbance already extends from Phase I across both the old and the proposed new phase boundaries. Please commit to clearly mark the boundary of Phase I and 2 at ground level.