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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />October 30, 2006 r/ <br />Fred Schmalz / <br />Schmalz Construction, Ltd. v <br />P.O. BOX 1105 <br />Gunnison, Colorado 81230 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Direcor <br />Natural Resource Trustee <br />~ ~ <br />Re: Schmalz Construction Pit, Permit No. M-1984-069, Reclamation Liability Update-2006, Notice of <br />Financial Warranty Increase SI-01.'~ <br />Dear Mr. Schmalz: <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of <br />the approved reclamation plan, DRMS has updated the reclamation cost estimate (copy enclosed). <br />Please review the enclosed figures as soon as possible and contact our office if any calculation errors are <br />noted. <br />Since the site has changed little since the last recalculation in 2000, staff used the accepted tasks and <br />volumes from the last recalculation. A review of update shows increases in seed costs, mobilization and <br />some overhead. Therefore, the new reclamation liability is now estimated at $21,654.00. This is an <br />increase of $6348.00. Clearly, the site is currently under-bonded. Therefore, pursuant to Section 34- <br />32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be <br />submitted to DMG within 60 days of the mailing date of this report. Schmalz Construction may <br />submit a rider to the current $15,306.00 held by the Division or submit a new bond in the entire amount. <br />Questions regarding bond forms and submittal of the bonding documents should be directed to Elizabeth <br />Shelton in our Denver Office at the address noted above. You may contact Ms. Shelton by phone at <br />303-866-4084 as well. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South Third Street, Room 301, Grand Junction, Colorado <br />81501, telephone no. 970-241-1117 <br />Sincerely <br />~ r_.....,.. <br />G. Russell Means Nll~ U 17 ~ tl' i <br />Environmental Protection Specialist Division of Reclama*ien, <br />Mining and Safety <br />STATE OF COLORADO <br />Office of Office of <br />Mined Land Reclamation Ac[ive and Inactive Mines <br />