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~ III IIIIIIIIIIIII III ~ United States Department of the Interior IN REPLY REFER TO. BUREAU OF LAND MANAGEMENT Royal Corge Resource Area 3170 East Main Su'ect Canon City, Colorado 81212 April 12, 1995 Certified Mail No. Z 205 797 786 Return Receipt Requested Mr. Scott Wagner High Plains Stone Company P.O. Box 100 Castle Rock, CO 80104 3611 (CO-057) c~D ~ In , ~4 / / Dear Mr. Wagner: We have received your application For a new permit for mining of Moss rock on Table Mountain, in SEA/ Sec. 15, T 17 S, R 68 W. We have reviewed that application in the light of the November, 1994, MLRB Declazatory Order covering this site, together with the past history contained in our case files. We do not agree with the Mined Land Reclamation Boazd that what you aze doing is not mining, and we do not think that you can do the jobs with only hand labor and a forklift. About one month ago, on Mazch 16, 1995, our geologist inspedted the site and noted at least 27 pallets of packaged rock remaining scattered over the hillside, presumably within your CDMG permit azea. It is difficult for us to see how you can remove those pallets without the use of some heavy equipment, such as a crane, which you apparently have used previously, since the boom lay on site at one time for a period of several months. We are prepared to issue a new permit to you for a larger azea than the 8+(?)acre site which is permitted by CDMG, based on the Declatory Order. The exact area and boundaries will be determined and mazked in the field by our geologist eazly in May when weather conditions permit. We will not issue a permit for the entire south half of Section 15 as you requested, because there is a huge reserve of rock in that area, and we have other applicants for permits there. It is not our policy to tie up a large reserve of rock on the basis of a proposed 800 tons of production per yeaz. The terms of our new permit, following your suggestions, will be for 4000 tons of moss rock (boulders or pallets) over a five yeaz period. The present appraised royalty is $7.00 per ton, so that the contract will cost $28,000.00. This can be divided into five payments of $5600.00, if you so desire, with the first and last payments (totalling $11,200.00), due at the beginning of the contract. The remaining payments will be due as you produce the material, i.e., the 3rd payment will be due at the end of the first year, or at the point when you have produced 800 tons, whichever comes sooner. In addition, for a contract of that size, our regulations require bonding in the amount of $5600.00. Please notify us if the above terms aze acceptable before we send someone out to mazk the new boundaries. I am enclosing a copy of the only plat we have in our files showing the boundaries of your present CDMG permit. According to our geologist, Charles Fair, you told him in the field that this map is not accurate, and that instead of the 2.08 acres shown on the enclosed map, you actually had more than 8 acres. You promised Mr. Fair that you would send us a revised copy the