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ti~ <br />i <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmem of Natural Resources <br />1373 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (3031 866-3567 <br />FAX: (.303) 832-87 Ob <br />Septernber 9, 1997 / <br />Ms. Sue Carter (/ <br />Telluride Mining Co., Inc. <br />P.O. Box 554 <br />Norwood, CO 81423 <br />RE: C-JD-5 Mine, Permit No. M-77-248 <br />Dear Ms. Carter: <br />s ~~ <br />STATE OF COLORADO <br />DENVER OFFICE <br />AfC1BLIC FILE COPY <br />FILE: M - 7 ~- ~ 5~8 <br />SITE: C-1D-5 <br />x~souRCEs <br />Roy Romer <br />Governor <br />lames 5. Lochhead <br />Executive Director <br />Michael 8. Lang <br />Division Director <br />This letter is in response to your August 29, 1997 correspondence regarding a request for an extension <br />to the corrective action due date for submittal of additional financial warranty for the C-JD-5 Mine. <br />The Division will grant one (1) 60 day extension, to November 12, 1997, to allow Telluride Mining Co. <br />or the current permittee, Blake Mining Co., sufficient additional time to comply with the increased <br />financial warranty requirement. Please be aware that the permit transfer will not be final until Telluride <br />Mining Co. has completed the Succession of Operator process by providing the increased financial <br />warranty amount. If the increased financial warranty amount is not provided to and accepted by the <br />Division by the November 12, 1997 deadline, the succession of operator will be denied and Blake <br />Mining company will remain the permittee. In this event, Blake Mining Co. will be responsible for <br />providing the increased financial warranty amount by the November 12, 1997 deadline. If Blake <br />Mining Co. does not provide an acceptable increased financial warranty to the Division by November <br />12, 1997, the Division may proceed with an enforcement action against Blake Mining Co. for failure <br />to provide sufficient financial warranty within the statutory 60 day period. <br />As you know, the required financial warranty increase from the currently held amount of 52,650.00 <br />to a new required bond amount of 521,865,00 was identified by the Division in an inspection report <br />for the site dated June 12, 1997. A copy of that report was forwarded to you this last June, and an <br />additional copy is attached to this letter for your reference. <br />Please be aware that the November i 2, 1997 due date represents the final deadline for receipt of and <br />acceptance by the Division of the increased financial warranty amount for the C-JD-5 Mine. The <br />Division will grant no additional time extensions beyond the November 12, 1997 deadline. <br />The permit transfer process has not been completed because the applicant for the succession of <br />operator, Telluride Mining Co., Inc., elected to have the Division recalculate the required financial <br />warranty amount prior to final approval of the transfer. As such, the current permittee remains Blake <br />Mining Co. and any enforcement actions taken by the Division to secure adequate financial warranty <br />will, until the permit transfer is approved, be taken against Blake Mining Co. and not Telluride Mining <br />Co. Also, please be aware that the financial warranty increase will be required regardless of whether <br />the Succession of Operator and Permit Transfer is approved or denied. <br />