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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />September 22, 2005 ~~ <br />Dick White <br />Cotter Corporation ~ <br />P.O. BOX 700 <br />Nucla, Colorado 81424 <br />~/ /~ <br />Re: CLP-21 Mine, Permit No. M-1977-305, Financial WarrantyReview,~~. <br />Dear Mr. White: <br />COLORADO <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />0.ECLAMATION•MI NING <br />SAf ETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the <br />requirements of the approved reclamation plan, DMG has updated the reclamation cost <br />estimate {copy enclosed). Clearly, the site is currently under-bonded. Therefore, <br />pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, <br />adequate financial warranty must be submitted to DMG within 60 days of the <br />mailing date of this report. The increase needs to be accepted prior to 11/21/05. <br />Please review the enclosed figures as soon as possible and contact our office if any <br />calculation errors are noted. <br />The Division of Minerals and Geology has reviewed Cotter Corporation's plans to restart <br />the CLP-21 Mine. Staff notes that current plans reflect the approved original mining and <br />reclamation plans with the exception of 2 proposed vent hole locations. As part of the <br />restart review, staff has recalculated the Financial Warranty necessary to complete <br />reclamation. The estimate for reclamation is $35,800.00. This is an increase from the <br />$1500.00 reseeding tasks calculated in November of 2003. As noted during the <br />inspection on August 4th, 2005 DOE has estimated the cost around $45,000.00. <br />The Division holds a $100.00 bond per Rule 4.2.1(8), and DOE holds the balance. Cotter <br />may submit a bond for $35, 700.00 to the Division. Alternately, Cotter may send <br />documentation to the Division showing current bonding levels held by DOE for this site <br />are sufficient to cover the $35,700.00 difference. <br />RECE~~~~ <br />S` . zo X05 <br />G/~ar°oollyi,~ah~1 <br />