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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 22, 2008 <br />COLORADO <br />DIVISION O f <br />RECLAMATION <br />MINING <br />-&- <br />SAFETY <br />Bill Ritter, )r. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Sean Frisch <br />Ronald W. Cattany <br />Land Planner Division Director <br />Lafarge North America, Inc. Natural Resource Trustee <br />10170 Church ranch Way, Suite 200 <br />Westminster, CO 80021 <br />RE: Sundance Sand and Gravel Pit; DRMS File No. M-2006-073; Financial Warranty <br />Dear Mr. Frisch: <br />On January 31, 2008 DRMS received your letter requesting an amendment to split your <br />required financial warranty into three phases. Your request details a proposal to post an <br />initial financial warranty for phase I followed by posting additional financial warranty <br />prior to entering each successive new phase of mining described as phases IIa and IIb. <br />The Division has no problem with the general concept for this approach, unfortunately, <br />there is no mechanism for amending or revising an approved permit application, which is <br />the present status of the Sundance Sand and Gravel Pit. Once issued, reclamation permits <br />can be revised or amended, however, your permit has not been issued at this time. <br />In accordance with Rule 4.1(2), no permit maybe issued pursuant to the Act until the <br />Board or Office receives and approves the Performance and Financial Warranties <br />required herein. If these warranties are not received within one calendar year of approval <br />of an application for any new permit, amendment or conversion, the Board shall hold a <br />hearing, in accordance with the notification and comment provision of Rule 1.6 to <br />reconsider the previous approval. If the Board affirms the original application approval, <br />the Board shall establish a new deadline for submittal of the Financial and Performance <br />warranties. If the required warranties are not posted by the date set by the Board, the <br />application shall be denied. According to our records, your financial and performance <br />warranties must be received and approved by April 19, 2008. <br />Therefore, you will need to post the amount of the financial warranty as approved in your <br />application approval letter ($3,254,883.00) along with the completed performance <br />warranty so that the permit can be issued by April 19, 2008. Once the permit is issued, <br />you can submit a technical revision requesting a phased approach to posting the financial <br />warranty as outlined in your January 31, 20081etter. Once that revision is reviewed and <br />approved, a new financial warranty amount reflecting the changes approved in that <br />revision can be posted. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />