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,r iii iiniiiiiiiu iii ~ <br /> STATE OF COLORADO <br />DIV1510N OF MINERALS AND GEOLOGY <br />DePanmenl o(Nalural Resour(•es <br />1317 Sherman 51 . Room '_15 <br /> <br />Denver. Colorado 80'07 II~ <br />Phone 17071 86h-3567 <br />FA%: 13071 837 8106 <br /> DEPARTMENT OF <br /> NATURAL <br />November 17, 1998 RESOURCES <br /> <br />Frank Butala Roy Romer <br />eovern°r <br />But31a Cons[rucnDn CO lames 5. Lochhead <br />PO Box 907 Erecmme DireUOr <br />Salida CO 81201 '""h'el s. L°"g <br /> Drvivon Dueaor <br />Re: Financial Warranty Increase, Butala Pit, M-8 - ~ <br />Dear Mr. Butala: <br />The Division recalculated the financial warranty requirement for the referenced mine site pursuant to <br />Rule 4.2.1(1) which states "all financial warranties shall be set and maintained at a level which reflects <br />the actual current cost of fulfilling the requirements of the reclamation plan." When your permit was <br />issued, the financial warranty was restricted, by statute, to a maximum of $5,000.00. Today, as noted, <br />the financial warranties must be set at the estimated actual current cost of reclamation. <br />Based on the approved reclamation plan, the estimated cost of reclamation is $56,130,00. The two major <br />costs are importation of topsoil and re-grading the terraced area. Enclosed is a copy of the reclamation <br />cost summary form which outlines all the expected tasks and the estimated cost of each task. You will be <br />allowed 30-days to review [he new estimate. If you can demonstrate to the satisfaction of the Division <br />[hat the cost estimates are too high, the Division will reduce the required bond amount. You will be <br />required to submit an additional bond to the Division wi[hin 60-days after an agreement is reached as to <br />the appropriate amount required. A separate notice will be sent establishing the 60-day period. <br />If you have any questions, please give me a call. <br />Sincerely, <br />James Dillie <br />Environmental Protection Specialist <br />Enclosure <br />