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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 />July 2, 2007 <br />Sandco, Inc. <br />P.O. Box 4440 <br />Durango, CO 81302 <br />STATE OF COLORADO <br />MINED LAND RECLAMATION BOARD <br />112c ANNUAL FEE INVOICE AND REPORT REQUEST <br />PLEASE READ CAREFULLY <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Under the terms of your Reclamation Permit and Colorado Statutes, you must submit Annual Fees and Annual <br />Reports. You must pay the Annual Fee and submit an Annual Report each year until reclamation responsibility <br />release is granted. The Annual Fee is not a renewal fee. The fee and the report are for LAST YEARS mining and <br />reclamation season, and MUST be received even if your operation was in an inactive state. The fee and report are <br />due ON OR BEFORE your permit anniversary date shown below. The Annual Report and Fee requirement is <br />not met until we have received the following components: fee, report, and associated map. If no new <br />disturbances or reclamation have occurred during the previous year and no new changes to the previous <br />year's map are necessary, then no new map is required, provided that the Operator shall state this in the <br />Annual Report. <br />If you have requested reclamation responsibility release from the Division of Reclamation, Mining and Safety (the <br />"Division ") but your permit is not released by your anniversary date listed below, the annual fee MUST be paid. If <br />the permit is released before the anniversary date, then by Statute, you do not pay an annual fee or submit an <br />annual report for that year. <br />PLEASE NOTE: IF THE ANNUAL FEE, ANNUAL REPORT, AND A MAP ARE NOT RECEIVED ON OR <br />BEFORE YOUR ANNIVERSARY DATE, A FORMAL NOTICE OF VIOLATION AND A BOARD ORDER TO <br />PAY CIVIL PENALTIES IN THE AMOUNT EQUAL TO THE ANNUAL FEE $791.00 WILL BE <br />AUTOMATICALLY ASSESSED. NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED <br />TO ANY OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34- <br />32.5 -120 OR C.R.S. 34 -32 -120) UNTIL THE VIOLATION IS ABATED. <br />Division records indicate $791.00 fee is due <br />Permit No.: <br />M- 1987 -064 <br />Operation Name: <br />Dalton Land & Cattle <br />Anniversary Date: <br />August 27, 2007 <br />Total Fee Due: <br />$791.00 (Due on or before your Anniversary Date) <br />If your records indicate different facts than those stated above please notify the Division. <br />Please return the enclosed annual report FORM, a MAP, and a CHECK or MONEY ORDER made payable to the <br />Division of Reclamation, Mining and Safety, 1313 Sherman St., Room 215, Denver, Colorado 80203. <br />Thank you for your cooperation in this matter. If you have any questions, please feel free to contact Jim Dupler at <br />(303) 866 -6277. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />