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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832$106 <br />October 29, 2005 r/ <br />Mr. Ben Frei / <br />Albert Frei and Sons, Inc. ~/ <br />P.O. BOX 700 <br />Henderson, CO 80640 <br /> <br />Re: Worthing plt, Permit Amendment Approval, <br />Permit No. M-1977-526, Amendment No. AM-Ol <br />Dear Mr. Frei: <br />~~~ r/ <br />COLORADO <br />DIVISION O F <br />MIN sRALS <br />GEOLOGY <br />REC LANATIO N•MINING <br />SAEETY•S CIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />On September 1, 2005 the Division of Minerals and Geology approved the permit amendment application <br />submitted to the Division on May 6, 2005, addressing the following: <br />Add a 50.3 acre Expansion Area to the existing permit area <br />Include the reclamation alternative to construct a sealed water storage reservoir in the existing Wortling <br />Pit permit area <br />The Division has finalized the reclamation cost estimate that is the basis for the amount of the required financial <br />warranty. The details of the recently completed cost estimating work for amendment AM-01 are enclosed with <br />this letter. Previous estimating work was described in the Division's adequacy letter and enclosures dated August <br />11, 2005, which are included here by reference. The amount of reclamation bond required for Permit No. M-1977- <br />526 is herby established at $230,300.00, and increase of $(64,500.00 over the bond the Division currently holds. <br />The full required bond amount must be posted prior to entering the Expansion Area North for the purpose of <br />mining, but no later than December 30, 2005. <br />The terms of the Permit Amendment No. Ol approved by the Division are hereby incorporated into Permit No. M- <br />1977-526. All other conditions and requirements of Permit No. M-1977-526 remain in full force and effect. If you <br />have any questions, please contact me. <br />Since~aly, <br />~/~ <br />Allen C. Sorenson <br />Reclamation Specialist <br />enclosure(s) <br />cc: Kathryn Cloutier, Greystone Consultants (w/enclosures and via fax) <br />Harry Posey, DMG (w/o enclosures and via email) <br />H. Bruce Humphries, DMG (w/o enclosures and via email) <br />r~Documenrs and Settings~.ACSN4Y Documentslwonhin6 am01 aypvl.doc <br />ice of Office of Colorado <br />Mined Land Reclamation Active and Inactive', Mines Geological Survey <br />