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~~ <br />STATE <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 />/March 28, 2008 <br />F COLORADO <br />COLORADO <br />D I M S I O N O F <br />RECLAMATION <br />MINING <br />-&- <br />SAFETY <br />Bill Ritter, Jr. <br />Mr. Dan Kehn Governor <br />Don Kehn Construction Inc. Harris D. Sherman <br />6550 So. County Road 5 I Executive Director <br />Fort Collins, CO 80528 I Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />RE: Don Kehn Construction, Inc.; Permit No. M-1989-056' i <br />Timnath Pit; Financial Warranty Increase (SI-O1) ~/ <br />Dear Mr. Kehn, <br />On February 28, 2008, the Division of Reclamation, Mining and Safety co ucted an inspection of the <br />Timnath Pit, Permit No. M-1989-056 to determine if the financial warranty held by the Division is <br />adequate. <br />According to Rule 4.2.1(1) and (2), the Division may review a financial wa ~ anty at any time to determine <br />if the amount is sufficient to perform reclamation. The Division recalculate the bond to factor in current <br />equipment and labor rates and reclaim the site to achieve the approved pos fining land use. The result of <br />the recalculation indicates that the site is currently under bonded. This lette~' ;!s to inform you that your <br />financial warranty will need to be revised from its current amount of $192,2L2.50 to $207,700.00 within <br />60 days of receipt of this letter. A copy of calculations used to determine this cost is attached for your <br />review. i <br />The operator has three options regarding the amount of required bond; <br />1. submit additional financial warranty in the amount of $15,477.50, <br />2. perform some reclamation on the site to reduce the reclamation liability, <br />3. revise the reclamation plan. <br />One of the three options, or a combination thereof, must be completed by Jul a 1, 2008. Failure to do so <br />maybe considered a violation of the Construction Material Rules and Regulations. If you have any <br />questions about this process or how the bond was calculated, please contact i)ne at (303) 866-4943. <br />/~, <br />Sir>I~erel1y, /'' <br />Erica S. Crosby <br />Environmental Protection Specia ' t <br />cc: Carl Mount; DRMS <br />Elizabeth Taliaferro; DRMS <br />Judy Kehn w/enclosures ~ <br />Enclosure(s); DRMS Reclamation Cost Estimate <br />Certified Mail # 7003 1680 0000 6429 6039 <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />-- i <br />- - <br />