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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLCIGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 86b3567 / <br />FAx: (303) 8328106 <br />April 13, 2006 <br />Acs ./ <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br /> <br />Mr. Bob Shajary grn ovens <br />cOVer"°r <br />G-P Gypsum Corporation Rasseu George <br />1401 Pier D Street Executive Director <br /> <br />Long Beach, CA 90802 Ronald W. Cattany <br />Division Director <br /> Natural Resourrn Trustee <br />RE: Adjustment to the Amount of Required Reclamation Bond, <br />Coaldale Quarry, Revision SR-04, Permit No. M-1977-247/ <br />Deaz Mr. Shajazy: <br />The Division of Minerals and Geology (DMG) currently holds bond in the amount of $457,000.00 for <br />reclamation of the Coaldale Quarry. This bond is in the form of Travelers Casualty and Surety Co. of <br />America corporate surety no. Based on observations, mapping, and measurements taken <br />during the inspection conducted on January 18, 2006, and the subsequent estimation of remaining <br />reclamation costs, the amount of required bond has been reduced to $80,500.00. G-P Gypsum may <br />provide a replacement bond in this amount, or a rider to the existing bond reflecting the decreased <br />amount. Also, if you wish to finalize the pending succession of operators to GACH Resources, GACH <br />can provide a bond for $80,500.00 or G-P Gypsum can provide a bond in GACH's name. <br />If you have any questions, please contact me at 303-866-4063. <br />Sincerely, <br />Allen C. Sorenson <br />Reclamation Specialist <br />cc: Suzi Ericksen, DMG (via email) <br />Bruce Humphries, DMG (via email) <br />C1DocumenLS and SettingsWCS~acs's documents~COaldale sr-04 bond adjustment.doc <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />