PERMFILE132945

• Permit No: C1981039
• IBM Index Class Name: Permit File
• Doc Name: Modification to Agreement
• Section_Exhibit Name: Reclamation Project Binder
• Media Type: D
• Archive: No

PARCEL, MAUBO, HITLTIN & SPAANSTBA, P. C.
• ATTORNEYS AT LAW
SUITE 3600
IBOI CALIFORNIA STREET
DENVER, COLORA00 60202-2636
TELEPHONE [phone]
DEAN R. MASSEY TELECOPIER [phone] DIRECT DIAL
[phone]
August 26, 1992
Mr. Steve Renner
Mr. Kent Gorham
Division of Minerals and Geology
1313 Sherman Street
Suite 215
Denver, Colorado 80203
Re: The Rockcastle Company
Modification of the June 26, 1990 Agreement
Gentlemen:
• The Agreement between the Colorado Mined Land Reclamation Division and the
Rockcastle Company dated June 26, 1990 (the "Agreement") contemplates the sequential
release of reclamation bond funds as the reclamation work at the site is completed.
Pursuant to Paragraph V.S., the Division is to retain $50,000 as a performance bond upon
completion of the reclamation work required by the Agreement. The purpose of the
retained amount is to provide an adequate amount of funds to complete all remaining
reclamation activities contemplated in the original permit for the liability period. Under
Paragraph VII of the Agreement, upon completion of the reclamation activities, Rockcastle
would voluntarily forfeit the remaining $50,000 and its obligations under the Agreement they
terminated. Under Paragraph VIII.S. the Division reserves its right to seek additional funds
in the event that the actual reclamation costs following the voluntary forfeiture exceed the
$50,000.
As you know, Rockcastle has completed a substantial portion of the reclamation
activities under the Agreement and has obtained a series of bond releases since execution
of the Agreement. As of this date, the Division retains $94,271 of the original bond. In
accordance with my letter of June 21, 1992, Rockcastle has proceeded to obtain bids for the
remaining reclamation work at the site. The work contemplated in the bid package includes
reclamation work which was specifically required in the Agreement as well as a significant
amount of work which has evolved as a result of inspections and a more thorough
understanding of the site and the likely reclamation issues. In the course of our meeting,
I noted that the low bid for the remaining work was $69,465 and provided you with a copy
• of the bid documents. A second copy is enclosed for your records. I also requested that the