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~ NOV 13 '97 09:40RM DMG I~fIRRNGO FIELD OFFICE P.2/3 <br /> • <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Departmem o(Natural Resources <br />) 373 Sherman St., Room 275 ~ J` <br />~ <br /> <br />Denier, Cobrado 80203 ~~~~ <br />~ <br /> <br />Phone: (303) 866-3567 II <br />FA%: (303) 832-8106 <br /> DEPARTMENT OF <br /> NATURAL <br /> RESOURCES <br />November 13, 1997 <br /> Ray Romer <br /> <br />Mr. Ray Fitzgerald Governor <br />ianres s. ~nchhead <br />Telluride Mining Co., Inc, rie<°".e D,re<,°r <br />1 l55 Avenue of the Americas M,~naei e, to°g <br /> <br />New York, NY 10036 DivISiO~ OireC~or <br />RE: C=JD-5 Mine, Permit No. M-77-248, Denial of Transfer of Permit and Succession of <br />Operator No. SO-02. <br />Dear Mr. Fitzgerald: <br />This letter constitutes notice of denial of Telluride Mining Company's request for a Transfer of <br />Permit and Succession of Operator for the C-JD-S Mute, Permit No. M-77-248, from Blake <br />Mining Co. to Telluride Mtning Co., Inc, The reasons for the denial aze as follows: <br />1. Telluride Mining Co., Inc. elected per. Option "A" of the Permit Transfer application to <br />waive their right to a thirty (30) day application processing time to allow the Division of <br />Minerals and Cyeology time to recalculate the requved financial warranty amount. The <br />bond'recalculation was completed on June 30, 1997 and forwarded to Ms. Sue Carter <br />along with an inspection report resulting from a June 12, 1997 inspection of the site. The <br />;,. inspection report indicated that, the required amount of Financial Warranty had increased <br />from the existing $2,650.00 amount to the recalculated amount of $21,865.00, and the <br />report further indicated that a Financial. Warranty in that amount was due within 60 days, <br />specifically August 31, 1997. <br />2. The Division sent Telluride Haring Co., Inc. notice of conditional approval of the Permit <br />Transfer in correspondence dated August 3, 1997 with a reminder to submit the <br />$21,865.00 Financial Warranty. To date; only a Performance Warranty has been received <br />by the Division from Telluride Muting Co., Inc. <br />3. On September 4, 1997, the Division received a request from Ms. Sue Carter of Telluride <br />Mining Co. for a ninety (90) day extension to the Financial Warranty submittal due date to <br />allow Telluride Mining Co., Inc. additional time to research the Division's cost 5gures and <br />took into she possibility of utilizing a U.S. Department of Energy (DOE) bond to satisfy <br />the Division's Financial Warranty requirements. In response to this request, the Division <br /> <br />