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1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 18, 2001 <br />Mr. CArln Harada <br />Lode5lar Energy, IRC. <br />HC 35, P.O. Box 370 <br />Helper, Utah 84526 <br />RE: McGlone Canyon Mine (Permit No. C-1981-004) <br />Permit Renewal No. S Reclamation Cost Estimate <br />Dear Mr. Harada: <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MI NING•SAFE7Y <br />Bill Owens <br />Governor <br />Greg E. Watcher <br />Executive Director <br />Michael B. Long <br />Division Director <br />Enclosed is the Division's recently completed cost estimate for McGlone Canyon Mine, performed in <br />association with the permit renewal review, along with an explanatory memo from Jim Slack No[e that the <br />estimated liability has increased due to increases in equipment costs since the previous estimate, and certain <br />other factors as explained in Jim's memo. Note also, that due to the increase in the estimated txtst of <br />reclamation, additional bond of at least $79,026.00 will need to be submitted to cover the amended liability <br />amount of 5271,563.00. <br />Please review the estimate and let me Irnow if you have any questions. We request that the additional bond <br />amount be submitted within 30 days of receipt of this letter. <br />Sincere~~~~ <br />Dan T. Mathews <br />Environmental Protection Specialist <br />c: Denver File <br />~ .~ ~S ~r~~~~ <br />`3'`' - (~ ~J j ,,ire t <br />T: <br />DIVISION OF MINERALS AND GEOLOGY ~ ~~ <br />Department of Natural Resources <br />