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\ - I - <br />.~ • <br /> <br />I II II III III IIII III I STATE OF CO ORADO <br /> <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />1313 Sherman St., Room 2I5 ` <br /> <br />Denver, Colorado 80'_03 ~I~ <br />~ <br />` <br />Phone: D031 866-3567 I <br />FAX 1304)83?-8106 <br /> DEPARTMENT OF <br /> NATU~L. <br />December 6, 1996 RESOURCES <br />Mr. Chris Varra Roy Romer <br /> <br />Varra Companies, Inc• Governor <br /> <br />2 1 3 0 S, 9 6th St . lames S. LOChhead <br />Executive Dhecmr <br />Broomfield, ~'~ 80020 Michael B. Lonk <br /> Division Duecmr <br />RE: Decrease in Required Financial Warranty for Dakolios it, <br />Permit r~M-84-036 <br />Dear Mr. Varra, <br />This letter is being written to inform you that the Divisi n of Minerals <br />and Geology (DMG) has recalculated the financial war anty for the <br />Dakolios Pit, Permit #M-84-036, following the inspectio s of the site <br />done on September 12 and November 25, 1996, and the rece t approval of <br />your water supply augmentation plan by the office of the S ate Engineer. <br />The new bond required is $89,550.00, a reduction of $62,70 .00 from your <br />currently posted financial warranty of $152,252.00. If yo wish to apply <br />for a surety reduction at this time, DMG will consider a request for a <br />financial warranty reduction of this amount to your bond provided that <br />the following commitments are made. The attached task esti ate describes <br />the estimated cost to the Division for full reclamation f the site at <br />this time. <br />This financial warranty reduction is dependent on a writ en commitment <br />from the Operator to mine the new pit at the site at 3H:1V slopes. If <br />concurrent grading is to be done, as was indicated in a recent phone <br />conversation on December 5 with Bradford Janes, Varra's environmental <br />consultant, then the maximum amount of highwall on site a any one time <br />must be specified. The Division will then calculate the c st of grading <br />the highwall and add it to the currently calculated cost a timate. If no <br />new written commitments are specified within 30 days, DMG will add the <br />cost of dewatering the pit and grading the walls of the a cavation down <br />to 3H:1V to the total required financial warranty. <br />If you have any questions, please contact me at (303) 8663567. <br />S~ncerely, <br />Christina L. Kamnikar <br />Environmental Protection Specialist <br />cc: Carl B. Mount, DMG <br />Bradford Janes, Professional Forester <br />Lti ~Cn <br />