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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 />Apri121, 2008 <br />Mr. Scott Davis <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />-&- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Schmidt Construction Company Executive Director <br />2635 Delta Drive Ronald W. Cattany <br />Colorado Springs, CO 80910 Division Director <br />Natural Resource Trustee <br />Re: Follow-up on Unresolved Problem(s) at Coal Creek Resources -Permit Number M-1988-044, AM-03 <br />Dear Mr. Davis: <br />The above-mentioned site has had one or more problems noted that, according to Division of Reclamation, Mining and <br />Safety (Division) records have not yet been resolved. <br />Amendment 03 was approved on April 7, 2006 for the addition of 1650 acres for a total of 2760 acres. <br />Subsequent to the approval of this amendment a bond calculation was performed. According to our records, the bond <br />amount to be posted prior to disturbance of this additional acreage is $881,944.00. Currently, the surety amount <br />posted on record with the Division is $310,000.00. This is a shortfall of $571,994.00. It appears that some <br />correspondence (enclosed) took place regarding this matter, but no resolution was reached. <br />Please note that if this issue is not properly addressed, and evidence is not provided to the Division by May 16, 2008, <br />this issue will be referred to the Mined Land Reclamation Board for further action. <br />If the problem has already been remedied, please provide evidence of compliance. <br />If you have any questions or concerns, please contact me at (303) 866-4179. <br />Thank you for your prompt attention in this matter. <br />Sincerely, <br />eb Za <br />Environmental Protection Specialist <br />cc: Mr. Mark Heffner, Southwestern Ecological Services, 37 East Colorado Avenue, Denver, Colorado 80210 <br />Enclosure: Financial Warranty documentation <br />CERTIFIED MAIL: 7005 3110 0000 2199 3672 <br />Office of <br />Office of <br />Mined Land Reclamation Denver Grand )unction Durango Active and Inactive Mines <br />