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<br />III IIIIIIIIIIIII III <br />SCHMALZ C _ _ _ _ 999 'ION LTD. <br />P.O. Box 1105 <br />March 28, 1995 <br />GUNNISON, COLORAD081230 <br />(303)641-2014 <br />Division of Minerals and Geology <br />1313 Sherman St. Room 215 <br />Denver, CO 80203 <br />ATTN: Michael B. Long, Director <br />!~ECE~~~r-~'~ <br />MAR 3 ~ 1995 <br />Division of nnutera~ s ~e;,,~y,• <br />RE: NOTICE OF REASON TO BELIEVE, POSSIBLE VIOLATION FOR FAILURE TO <br />SUBMIT ADDITIONAL BONP.ING FOR HOLLENBECK PIT, PERMIT!NO.M-85-023 <br />DATED MARCH 22, 1995 <br />Dear Mr. Long: <br />A copy of the cover letter dated October 26, 1994 which a companied <br />the Financial Warranty Letter of Credit and the Irrevocab e Letter <br />of Credit which were submitted to you is enclosed. At th t time <br />we requested notification of any required additional pape ork. <br />Until we received your notice referenced above, we had re~son to <br />believe we were in compliance with the requirement for an',additional <br />$10,000 bond, and certainly our bank had led us to believ~ so, as <br />evidenced by the assignment they required us to execute ( opy <br />enclosed). <br />In hopes that we can clear up this issue, please find enc osed an <br />Irrevocable Letter of Credit executed upon bank stationer which we <br />trust will meet your requirements. Please let us know i ediately <br />if there is still some deficiency in the Financial Warran y docu- <br />ments so that we can clear it up. Apparently there was s me prior <br />communication with our bank last month, however we know o no <br />additional paperwork needs at this time. <br />Again, please inform us if you believe we are now in comp~Liance. <br />Sir erp1_y <br />Fred Schmalz <br />President <br />cc: Lavern Lemay <br />Certified#P054 578 727 <br />Utility Construct/on Specialists <br />AN EQUAL OPPORTUNITY EMPLOYER <br /> <br />