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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832$106 <br />December 16, 2005 <br />Jerry M. Nettleton <br />Environmental Coordinator <br />Twentymile Coal Company <br />29515 Routt County Road #27 <br />Oak Creek, CO 80467 <br />Re: Foidel Creek Mine, Permit C-1982-056 <br />Proposed Bond Adjustment and Notice for an Informal Conference (SI-Ol ) <br />Dear Mr. Nettleton: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />E~FETY•EGIENCE <br />Bill Owens <br />Goverlwr <br />Russell George <br />Executive Director <br />Ronald W. Gnany <br />Division Director <br />Natural Resource Trustee <br />[n accordance with Rule 3.02.2(4), the Colorado Division of Minerals and Geology (Division) has <br />reviewed the amount of reclamation bond required for the Foidel Creek Mine Permit C-1982-056 <br />(see Item 33 of the November 17, 2005 Midterm Review). As a result of our review, we have <br />estimated the cost to reclaim the mine site, in the event of forfeiture, to be $6,914,090.00. This <br />amount exceeds the current bond held of $6,339,675.00. By this letter, the Division is providing <br />notice of a proposed bond adjustment and an opportunity for an informal conference concerning <br />the proposed adjustment pursuant to Rule 3.02.2(4)(a). Attached is a copy of the Division's cost <br />estimate for your review (Interoffice Memorandum, Binns to Walker, 12/15/2005). An informal <br />conference may be used to set specific actions and schedules necessary to resolve the discrepancy <br />between the bond amount currently held, and the amount required to ensure reclamation. <br />Please let us know within 30 days of this letter if you would like to have an informal conference <br />concerning the bond adjustment. If a request for an informal conference is not received by <br />January 25, 2006, the Division will proceed with the proposed decision and publication <br />procedures specified in Rule 3.02.2(4). <br />Please contact me if you have any questions or need additional information. <br />Yours truly, <br />Byrod G. Walker <br />Environmental Protection Specialist <br />1 Attachment, as stated <br />files: electronic: C-1982-056, SI-1 <br />C:\bgw\My Documents\Foidel Creek\Sls\SI-Ol transmittal letter.doc <br />C-1982-056, SI-Ol <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />