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_.~ ~<_ <br />permit holder; and c) The DOE financial warranty is valid and covers all reclamation <br />activities required to be completed by the approved DMG reclamation permit. The <br />amount of financial warranty posted with the DMG shall be the difference between the <br />amount required to be posted by the DOE, and the amount required by the DMG. In no <br />event shall the amount of financial warranty posted with the DMG be less than $100.00. <br />In addition, the state reclamation permit application shall contain a provision that in the <br />event the DOE reduces the financial warranty; the pennittee must post an acceptable <br />replacement warranty with the DMG prior to any release by the DOE. The replacement <br />warranty shall be sufficient to cover the cost of reclamation liability unless the state <br />conducts an inspection and concurs with the DOE finding. <br />2) Execute a Succession of Operator and Transfer of Permit ("SO"). The successor <br />applicant will need to complete an SO application ($100.00 application fee) and submit to <br />the DMG a properly executed financial warranty in the amount of $21,865.00. The SO <br />application must be approved and the financial warranty reviewed and accepted by the <br />DMG prior to the scheduled hearing date. In the event the successor applicant wishes to <br />pursue having the DMG accept a DOE bond in lieu of a DMG bond, the successor <br />applicant will need to provide to the DMG, prior to the hearing, the written verifications <br />from the DOE as described above, plus a minimum $100.00 financial warranty to the <br />DMG. <br />If you have any questions or need additional information, please contact me at the DMG's <br />Durango Field Office at 970-247-5523. If you have questions regarding the specific requirements <br />for the various types of bond instruments acceptable to the DMG, please contact Barb Chiappone <br />at the DMG's Denver Office at 303-866-3567. <br />Sincerely, <br />.~ / J~/ice <br />Tom Gillis <br />Senior Environmental Protection Specialist <br />cc: Perry Flanigan, Ryan Ltd., 1409 Birch, Montrose, CO 81401 <br />Joe Baldwin, Ryan Ltd., 1641 - 6500 Road, Montrose, CO 81401 <br />Angela Ekker, Branney, Hillyard & Barnhart, LLP, 7887 E. Belleview Ave., Suite 1200, <br />Englewood, CO 80I I 1 <br />Don Gormari, Gold Eagle Mining, Inc., P.O. Box 3007, Montrose, CO 81402 <br />Dan Burns, U.S. Dept. Of Energy, 2597 B 3/4 Road, Grand Junction, CO 81503 <br />Dave Diss, Cotter Corporation, P.O. Box 700, I~TUCIa, CO 81424 <br />/tdg <br />m342fwl.tdg <br />2 <br />