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Jw <br />STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1373 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />~/ vember 21, 2006 <br />Jamie Gaboriau <br />Aggregate Industries <br />1707 Cole Blvd., Suite 100 <br />Golden, CO 80401 <br />;/ <br />RE: Tucson South Resource; DMG File M-2004-044; Technical Revision No. <br />f.~dequacy Letter Response <br />Dear Ms. Gaboriau: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />6t- <br />SAFETY <br />dill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Camany <br />Division Director <br />Natural Resource Trustee <br />1; Response to <br />The Division received your response to our adequacy comments on October 6, 2006. To <br />summarize, the technical revision is requesting a reduction of the bond amount approved in your <br />permit application from $1,054,203.00 to $5,000.00. This request is being made since the actual <br />start up date for mining will be 2009 or later and very little on the ground disturbance will occur <br />prior to this date. This action would allow the permit to be issued while also allowing certain <br />activities to occur on site prior to actually initiating full scale mining, <br />Our adequacy letter requested that you provide reclamation costs associated with actual items that <br />may be occurring during the next few years while the site is in the more preliminary stages of <br />development. Your response listed two items that could be associated with preliminary <br />development at the Tucson South Resource site including haul road construction and cottonwood <br />tree removal, as per the approved permit application. The cost of reclamation associated with <br />these items equaled $8,877.27. Adding on 23.5% for overhead and administrative costs brings <br />this amount up to $10,963.43 (rounded up equals $11,000.00). Please provide a ftnancial <br />warranty in the amount of $11,000.00 along with the completed performance warranty. Once we <br />receive these documents our office will process them along with this revision and issue your <br />mining permit with one additional stipulation as follows: <br />Stipulation No. 1 <br />Within 60 days of conducting mining or any other preliminary activities outside ojcottonwood <br />tree removal or haul road construction, the operator will notify the Division and provide <br />additional financial warranty in the amount of $!,043,103.00 <br />Please contact me with any questions at (303) 866926. <br />Sin erely, <br />Anthony .Waldron <br />Senior Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />