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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <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 />September 11, 2006 <br />Ronald G. Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Re: Review of Adequacy Responses, Surety Release No. 2 (SL-02) <br />New Elk Mine (Permit No. C-81-012) <br />Picketwire Processing. LLC. <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive DIRYYOf <br />Ronald W. Cattany <br />Division Dinxtor <br />Natural Resource Trustee <br />The Division of Minerals and Geology (Division) has completed a review of the responses to <br />our adequacy review of Surety Release No. 2 (SL-02) for the New Elk mine. <br />At the bottom of the second page of the cover letter is a listing of the materials <br />enclosed with the submittal. This list and the response to question #11 indicate that <br />pages 2.05-46 and 51 are included in the package. The Division did not receive these <br />revised permit pages. <br />2. The table titled Schedule /ll, Phase l Bond Release for Surtace Area Facilities <br />inaccurately lists the reclaimed area south of highway 12 as a "DNR" area. This area <br />received topsoil and is a "DR" area. Please correct and also correct acreage totals on <br />the summary sheet. <br />3. On the Bond Reduction/Release Summary page, the total requested for release <br />before indirect costs is $274,098.79. However, the Division believes that this dollar <br />value should be $314,631.76, which is the total of the value of the Phase I work done, <br />$201,364.54, plus the bond reduction amount of $113,267.22. Please review and <br />correct as necessary. <br />This concludes our review of your responses. Please submit the revised information within <br />45 days of receipt of this letter. If you have any questions, please contact me. <br />Sincer y, ~~~ /~~- <br />Ke t .Gorham ~/ <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />