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' MINREC, INC.
<br />2788 COMPASS DRIVE, SUITE 101
<br />GRAND JUNCTION, COLORADO 81508
<br />PHONE: (970) 245-4101, FAX 242-7908
<br />RED CANYON MINES
<br />October 2. 1998
<br />FINAL BOND RELEASE LETTER
<br />Carl D. Trobridge Trujillo
<br />425 SW 102nd St.
<br />Seattle, WA 98146-3841
<br />Dear Mr. Trujillo:
<br />MINREC, INC., is the successor in interest to Grand Mesa Coal Company's Division of
<br />Minerals and Geology, Permit No. C-81-034. The Red Canyon Mine site was reclaimed
<br />during 1988. The vegetation on the reclaimed areas has been very successful.
<br />Vegetation studies, performed during 1997 and 1998 have demonstrated the vegetation
<br />on the reclaimed mine site has been successfully established in accordance with the
<br />approved reclamation plan.
<br />One provision of the Division of Minerals and Geology's Rules is that the mine must be
<br />bonded for the estimated reclamation cost. Now that the vegetation is established,
<br />MINREC has formerly requested a final bond release from the Division of Minerals and
<br />Geology. MINREC is presently bonded for $74,000 and has requested the entire bond be
<br />released. In accordance with the Division's Rule 3.03.2(1), MINREC is required to send
<br />written notice of its request to adjacent land owners and various local governing bodies.
<br />The area for which final bond release is being requested is at the Red Canyon Mine Site
<br />located five miles northwest of Cedaredge, CO, in portions of Sections 2, 11, 12, 13, & 14,
<br />T 13 S, R 95 W. The location of the permit area is contained in the U.S. Geological
<br />Survey 7.5 minute Cedaredge, Colorado, quadrangle map. The Legal description of the
<br />permit boundary follows:
<br />Towriship 13 South, Ranoe 95 West, 6th P.M.
<br />Section 2: NW'/,SE%, SW'/.SE'/,
<br />Section 11: NW'/,NEY+, SWY.NEY,, SE'/+NE'/., NEY,NW'h SE'/,NW'/,, NE'/.SW'/,
<br />SE'/,SW'/,, SW'/,SW'/.SE'/+, NW'/+SE'/.
<br />Section 12: W'/zSE'/,NW'/+, SW'/.NW'/., NW'/+SW'h, SW'hSW'/.
<br />Section 13: NW'/<NW'/,
<br />Section 14: NE'/.NE'/. excepting therefrom the following tracts of land
<br />
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