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.~ . . I~~ I~II~~I~IIIIII~I STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmern of ~.\'amral Resources 7373 Sherman SI. Room?15 Denver, Colorado 80?03 Phone: 13031 866-367 F4ti: 1303)tl3_-8106 RECEIVEQ March 30, 1998 Mr. Don Coram, President Gold Eagle Mining, Inc. P.O. Box 3007 Montrose, CO 81402 APR 0 6 1998 Division of Minerals & Geobgy DENVER OFFICE PUBLIC FILE COPY FILE: M - ~g _ 3 s~ 1 SITE: ~llrso., M;h~ Te,~. ~FAfrrc sM~M~ f F,[%r, RE: Ellison Mine- DMG Reclamation Permit No M-78-342 Dear Mr. Coram: ~~~~~ DEPARTMENT OF NATURAL RESOURCES Rov Romer Go. ernm fames 5. Lochhead E recmive Duenor nn~chael B. Long Divivon Director As you know, the DMG Enforcetnent Action for the Ellison Mine, No. M-78-342, .vas withdrawn from consideration by the Mined Land Reclamation Board after the permit vas transferred from Ryan, Ltd. to Gold Eagle Mining, Inc. As part of the permit transfer, the DMG accepted a DOE bond in lieu of a DMG bond (except for the statutory $100.00 minimum DMG bond). However, one of the requirements set forth under Rule 4.2.1 (8) of the Hard Rock Rules for acceptance by the DMG of bonds posted with federal land management agencies such as the DOE, is that the approved permit application must contain a provision that in the event the federal land management agency reduces the financial warranty, the operator must post an acceptable replacement warranty with the DMG prior to any release by the federal land management agency. Since the approved permit application for the Ellison Mine does t>Qt contain such a provision, Gold Eagle Mining, Inc. will need to submit a Technical Revision request ("TR") to the DMG to add this necessary provision to the approved permit. The TR needs to be submitted as soon as possible in order to avoid anon-compliance enforcement action from the DMG. The TR submittal need only consist of a letter to the DMG referencing the permit number. the reason for the TR request. and a statement containing the provision referenced in the Rule co v attache This requirement was previously identified by the DMG in a February 5, 1998 letter sent to all parties having an interest in the Ellison Mine Permit (copy attached).