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DIVISION Of MINERALS AND GEOLOGY Dep,ulmem of N. Wral Resource I ] I3 Sherman St.. Room 215 Denver, Colorado 80203 Phone: 13031 865J55% FAX: (3031 832-8108 February 29, 2000 Ms. RhondaNeumeister RBK Construction, Inc. P.O. Box 37ti Rye, CO 810ti9 RE: RBK Pit 30 (Permit M-1990-106) Notice of Insufficient Financial Warranty Dear Ms. Neumeister: The Division conducted an inspection of RBK Pit 30 on 2/10/2000 for the purpose of collecting data that would allow an evaluation of the sufficiency of the currently posted financial warranty to provide for reclamation of the site. According to the Division's subsequent analysis, the results of which are attached to this letter, the currently posted financial warranty of $5,000.00 is insufficient to complete reclamation of the site and that a financial warranty totaling $14,530.00 is required. Pursuant to C.R.S 34-32.5-I 17 (4) (c), this letter is, therefore, notice that RBK Construction, Inc. as operator of the RBK Pit 30 (Permit M-1990-106) has 60 days from the date of this notice to provide additional or replacement financial warranty totaling $14,530.00 for the pit. The Division's analysis is based on the following: DIVISION OF MINERALS GEOLOGY RECLAMATION MINING•SA FETY Bill gwens f nvernnr pCg E \Vanc~~ E.ecwwe Dueaoi Michael B Long D~~~,~nn Duoan, TASK 1-PUMP DOWN AND MAINTAIN POND LEVEL: The approved reclamation plan for the site includes a permanent pond. Rule 3.1.5 (7), however, requves that the margins of [he pond be no steeper than 3:1 from 5 feet above to 10 feet below the expected water line and no steeper than 2:1 below that level. The visible pond margins on the north and east sides of the pond are estimated to slope at a l:l or steeper gradient. These margins, therefore, exceed the required 3:1 slopes and consequently will require the addition of material as well as grading of that material in order to meet the requirements of Rule 3.1.5 (7). In such case, the level of the pond will have to be lowered and maintained at a lower level to facilitate the use of equipment necessary to the backfilling and grading. The Division's estimate is that this can be accomplished by a 4" 500 gpm capacity pump operating over a 30 day period. TASK 2-RIP AND PUSH ASPHALT FROM ACCESS ROAD INTO PIT: In the event the Division is required to reclaim the site, the approved reclamation plan requires that the asphalt surface on the access road must be removed and disposed of The Division proposes to do this by ripping the surface and pushing the material into the pit. The Division's cost estimate for doing this is based on use of a Cat 120G Grader (or its equivalent) equipped with a ripper. TASK 3-SPREAD OVERBURDEN/TOPSOIL ALONG THE STEEP POND MARGINS: The southern margin of the pond appears to meet the requirements of Rule 3.1.5 (7) but the nonhem and eastem margins do not. The nonhem and eastem margins of the pond, located as close as they are to the permit area boundaries, cannot be reduced to 3:1 slopes without the introduction of additional material and the grading of that material to the required slopes. The Division estimates that the minimum amount of material necessary to accomplish this, assuming that [he margins currently slope at a minimum of I:I and extend to a depth of 1 i feet, will be 4825 cu. yd. The only practical source of [his material is the large stockpile of material identified as "topsoil" located in the western part of the permit area and estimated by the Division to contain, a[ a minimum, a total slightly in excess of 21,000 cu. yd. The Division's cost estimate for doing this is based on use of a Cat 988B Loader. _ _ III IIIIIIIIIIIIIIIIOF COLORADO 999 i ~ ~