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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1373 Sherman St, Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />~~~ <br /> COLO <br /> DIVISION O F <br /> MINERALS <br /> Sc <br /> GEOLOGY <br /> 0.ECLANATION•MINING <br />SAFETY•SCIENCE <br />RECEIi/ED Bill Owens <br />February 17, 2006 t/ (~ cn~ernnr <br />FGD ~ ~ 2~ Russell George <br />Executive Director <br />BenMillei pivisionafMineralsandCeoloBY Ronald W.Cattany <br />Division Director <br />Greg Lewicki and Associates Natural Resource Lustee <br />11541 Wamngton Court <br />Parker, Colora j80138 <br />Re: Glen Pi/y Application No. M-2005-075, Initia[Financial Warranty Calculations. <br />Dear Mr. Miller: <br />DMG staff has calculated the Initial Financial Liability for the proposed Glen Pit. The <br />calculations are based on the worst-case scenario towards the end of mining in Phase 5. <br />This would create a lake of approximately 21.85 acres that would have to be pumped <br />down to establish 3:1 slopes. Staff estimates an area of approximately a half-acre of flat <br />area and 2.6 acres of wetlands would need to be re-vegetated along with .7 acres near or <br />around the discharge pond. <br />Please review the enclosed Cost Summary Form. If there are any errors or clarifications <br />that need to be noted, please contact staff as soon as possible. If United /Old Castle <br />agrees with the calculations the Financial Warranty will be set at $56,060.00 upon final <br />approval of the application. <br />At this time, it appears that all issues have been addressed in the review process. <br />Agreement on a bond amount should be the final step prior to a decision. <br />If you need additional information, please contact me at the Division of Minerals and <br />Geology, Grand Junction Field Office, 101 South Third Street, Room 301, Grand <br />Junction, Colorado 81501, telephone no. 970-241-1117. <br />Sincerely, <br />~~~~ ~~ <br />--~ <br />G. Russell Means <br />~~~ <br />Environ ental Protection Specialist <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />