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Mr. Steve Renner <br />May 6, 1991 <br />Page 5 <br />Phase I and Phase II bond release for the entire site, except for <br />Phase II bond release on those portions of Pit 4 revegetated in <br />1990. Rockcastle has submitted extensive information supporting <br />both Phase I and II bond release for the site. Thus, Rockcastle is <br />entitled to a return of 85 percent of its $446,680 bond ($379,678). <br />This amount substantially exceeds the amount which has been <br />released to date by CMLRD ($312,376). <br />Similarly, issues regarding hydrologic monitoring and sediment <br />pond inspections are also substantively moot. Rockcastle continues <br />to monitor surface water discharges at the site. Further, <br />Rockcastle has prepared and submitted extensive information <br />regarding the condition and stability of the sediment ponds in <br />preparation for removing these ponds. <br />OSM raises several issues regarding backfilling Pit 5/6. OSM <br />misinterprets the Agreement to require additional backfilling and <br />grading at Pits 5(6. Pursuant to the Agreement, Rockcastle could <br />demonstrate that these Pits are geotechnically and geomorphically <br />stable. Agreement S IV.1. Rockcastle has demonstrated to CMLRD's <br />satisfaction that the pits are geotechnically stable, and has <br />proposed measures, after consultation with CMLRD, to enhance the <br />geomorphic stability of the pits. Moreover, the Agreement <br />recognizes that these pits were reclaimed many years ago, that <br />substantial revegetation is present at the site, and that <br />redisturbance of the pits would result in undesirable, unnecessary <br />and unreasonable environmental harm. Moreover, all required <br />backfilling and grading at the Grassy Gap mine has been completed, <br />and therefore Phase I bond release is appropriate. <br />We hope the foregoing comments are helpful in responding to <br />OSM. Please do not hesitate to contact me or Brent Anderson if you <br />have any questions regarding the content of this letter or if we <br />can be of further assistance in this matter. Thank you. <br />Sincerely, <br />,PAR E , MAURO, ~iLjL~IN AND SPAANSTRA, P. C. <br />Bien Anderson `( <br />ATTO YS FOR THE ROCKCASTLE COMPANY <br />BCA:pjh <br />Enclosure <br />cc: David J. MacDougall, Esq. <br />Mark Korb, Esq. <br />