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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Departrnent of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832.8106 <br />April 27, 2006 <br />Mr. John Lohr <br />CEMEX <br />P.O. Box 529 <br />Lyons, CO 80540 <br />RE:CEMEX, Inc., Lyons Quarry; Permit No. M-1977-208 <br />TR-07; Adequacy Letter <br />Dear Mr. Lohr: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />Bill Owens <br />Gavemor <br />Russell GeoBe <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division received Technical Revision (TR-07) for the Lyons Quarry, Permit No. M-1977-208 operated by <br />CEMEX, Inc. The revision provides a design and cost estimate to support the calculation for a bond to cover <br />the cost of implementing a treatment remedy for water remaining in the C-pit. <br />The operator estimates a cost to implement the biological plan in the amount of $625,000.00. It does not <br />appear that the estimate took into account the indirect cost that is a required component of the bond. When the <br />bond was recalculated in 2003, an indirect cost of 17.6% was applied to the estimate. The 17.6% consist of the <br />following; <br />• Liability Insurance- 1.55% <br />^ Performance Bond- 1.05% <br />Profit- 10% <br />Engineer Work- 5% <br />The indirect cost of 17.6% in the amount of $ 110,000.00 when added to the $625,000.00 would increase the <br />required bond amount to $735,000.00, Please include the indirect cost in the estimate, or demonstrate that this <br />cost was included in the original bond calculation. <br />Please be advised that Division's decision due date is set for May 22, 2006. If you feel more time is needed to <br />complete your reply, the Division can grant an extension to the decision date. This will be done upon receipt <br />of a written waiver of your right to a decision by May 22, 2006 and request for additional time. This must be <br />received no later than the deadline date. If you have any questions, please contact me at (303) 866-4943. <br />Cosby ~~~~/~ <br />;ntal Protection Specialist <br />cc: Carl Mount; DMG <br />Paul Banks; Banks & Gesso <br />Office of Office of Colorado <br />land Reclamation Active and Inactive Mines Geological Survey <br />