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:~ <br />IIIIIIIIIII ~-~~-~~ Q~ COLQRADO <br />DIVISION OF MINERALS AND GEOfpGY <br />Depanmem of Natural Resources <br />1313 Sherman 51., Roam 215 <br />Denver, Colorado 80203 D I v 15 l O N O F <br />Phone: 13031 866-3567 MINERAL S <br />FAX: (3031 8328106 & <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Michael B. Long <br />Division Director <br />April 15, 1999 <br />Jim Stover <br />MINREC, INC. <br />2768 Compass Drive, Suite 101 <br />Grand Junction, CO 81506 <br />RE: Phase II and III Bond Release Evaluation <br />Red Canyon Mine (Permit C-81-034) <br />Dear Mr. Stover: <br />This letter is to advise you that the Division has completed the evaluation of subsidence effects <br />with respect to the final bond release application for the Red Canyon Mine. Our hydrology <br />evaluation is on-going, but we anticipate that it will be completed within a short time following <br />Mike Boulay's site visit later this month. <br />With respect to subsidence, we have concluded based on review of applicable documents and <br />surface inspection, that no material damage related to Red Canyon Mtne subsidence is evident. <br />Dr. Jim Pendleton's memorandum based on his Mazch 17, 1999, inspection of structures and <br />surface cracking on and adjacent to the permit area is enclosed. Unless additional information is <br />brought to our attention which alters this determination, our proposed bond release decision will <br />conclude that subsidence related material damage has not occured. <br />Please contact me if you have any questions. <br />