2006-10-23_REVISION - M1988081

• Permit No: M1988081
• IBM Index Class Name: Revision
• Doc Date: 10/23/2006
• Doc Name: Comstock Mining and Refining Financial Warranty Increase
• From: DRMS
• To: Comstock Mining & Refining
• Type & Sequence: SI1
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
t313 Sherman SC, Room 275
C O L O R A D O
Denver, Colorado 80203 DIVISION OF
Phone: [phone] RECLAMATION
FAX: [phone] MINING
- ~-
SAFETY
September 25, 2006
Bill Owens
Mr. Raymond "Rocky" Conner Governor
Comstock Mining & Refining Russell George
P.~. BOX 841 Executive Director
Silver Springs, NV 89429 Ronald W. Cottony
Division Director
RE: Phil Sheridan Lode; Permit No. M-1988-081 Natural Resource Trustee
Comstock Mining & Refining.; Financial Warranty Increase
Dear Mr, Conner, - '
On July 19, 2006, the Division of Reclamation, Mining and Safety conducted an inspection of the Phi( Sheridan
Lode, Petmit No. M-1988-081. The Division currently holds a bond in the form of a Certificate of Deposit
(#394310579815 issued by US Bank) in the amount of $1,718.41.
According to C.R.S. 34-32-117(4)(b) and 34-32-117(4)(c)(II) of the Colorado Mined Land Reclamation Act (Act)
and Rules 4.2.1(1) and (2) of the Hard Rock/Metal Mining Rules and Regulations (Rules), the Division may review
a financial warranty at any time to determine if the amount is sufficient to perform reclamation. The Division
recalculated the bond to factor in the current disturbance and what is required to achieve the approved postmining
land use. The result of the recalculation indicates that the site is currently underbonded. This letter is to inform
you that your financial warranty will need to be revised from its current amount of $1,718.41 to 8 365.00 within
60 days of receipt of this letter. A copy of calculations used to determine this cost is attached for your review. The
operator has three options regazding the amount of required bond;
1. submit additional financial warranty in the amount of $6,646.59,
2, perform some reclamation on the site to reduce the reclamation liability, or
3. revise [he reclamation plan.
One of the three options must be completed by December 1, 2006. Failure [o do so maybe considered a violation
of the Act and the Rules. If you have any questions about this process or how the bond was calculated, please
contact me at [phone].
Si~nc~re ely,
L°r cl/'a
Environmental Protec ' ist
ca Carl Mount; DRMS
Elizabeth Shelton; DRMS
Harry Covey- w/enclosure
Enclosure(s)- Reclamation Cost Estimate
CertiFed Mail # 7004 1350 0001 1636 7558
Office of Office of
Mined Land Reclamation Active and Inactive Mines