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KAISER VENTURES, INC. <br />3633 East Inland Empire Blvd. Suite 850 <br />Ontario, California 91764 <br />909-483-8500 <br />CERTIFIED MAIL <br />August _, 2004 <br />U.S. Forest Service <br />San Juan National Forest -Pagosa Ranger District <br />' C/O Glenn Raby <br />180 Second St. <br />P.O Box 310 <br />' Pagosa Springs, CO 81147 <br />Dear Sir: <br />' Kaiser Ventures, Inc. would like to inform you that an application for Phase III bond release of <br />the Dryland Reclaimed Areas of mining permit number C-8]-023 for the Chimney Rock mine <br />located in Archuleta County, Colorado, will soon be filed with the Colorado Division of Minerals <br />' and Geology. Kaiser Ventures Inc. is the applicant and its business address is 3633 East Inland <br />Empire Blvd. Suite 850, Ontario, California 91764. The mine is located 20 miles southwest of <br />Pagosa Springs, Colorado on the Mel Martinez Ranch and U.S, Forest Service lands. These lands <br />' include the N1/2, SE '/ of Section 30, and the NE % of Section 30, T34N, R4W and may be <br />located on the USGS 7.5 nvnute Chimney Rock quadrangle. <br />This Phase III bond release application pertains to the successful completion of the reclamation <br />plan for the Dryland Reclaimed Areas of the Chimney Rock Mine. The Dryland Reclaimed <br />release areas cover 94 acres and include the east pit and barren ridge/revision 1 reclaimed areas. <br />' The Dryland Reclaimed Areas were reclaimed over a period of eleven years, from 1981 through <br />1991. The approved post-mmmg land use designations are dryland pasture and <br />rangeland/wildlife. Success criteria for approval of Phase III bond release include; at least ten <br />years since initial revegetation; a mininmm of five years since the last seeding, fertilizing, rill attd <br />gully repair, or other work has been conducted on the area; and achievement of revegetation <br />success criteria during the last two years of the bond liability period. If approved, the current <br />letter of credit bond of $103,200 would be released. <br />Written comments, objections, or request for a public hearing or informal conference on the <br />application must be submitted to the Colorado Division of Minerals and Geology, 215 Centemtial <br />' Building, 1313 Shernran Street, Denver, Colorado 80203 within 30 days of the completed <br />inspection of the mine site. A date for final inspection of the Dryland Reclaimed Areas has not <br />been set as of the issuance of this notification, but is anticipated to occur in September of 2004. <br />Sincerely, <br />' Mike Keegan <br />Manager of Operations <br />