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Applegate <br />Group, inc. <br />July 10, 2008 <br />Colorado Division of Reclamation, Mining and Safety <br />Attn: Mr. Peter flays <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: " Bond Reduction Request; Connell Resources, Inc., LLC; <br />Raindance Sand and Gravel Mine; M-2004-022 / <br />Dear Mr. I lays: <br />5R- 0? <br />JUL 14 2008 ? <br />Division of Reclamation 4/ <br />Miming and Safety J <br />The following information is being submitted on behalf of our client, Connell Resources, Inc. for the <br />Raindance Sand and Gravel Mine (M-2004-022) in Weld County, Colorado. The site is located south of <br />the Town of Windsor in Weld County, northwest of the intersection of Weld County Road 17 and Weld <br />County Road 64. The site is located in Sections 29 and 30, Township 6 North, Range 67 West of tile 6 1h <br />Principal Meridian. <br />On January 24, 2005, the Division of Reclamation Mining and Safety approved technical revision TR-1. <br />This technical revision changed the reclamation plan from two (2) to one (1) clay lined water storage <br />reservoir. The west pit was reclaimed to rangeland rather than a clay lined reservoir. Reclamation of the <br />east pit remained a clay lined water storage reservoir. <br />Construction of the liner began in October of 2006. Construction was completed March of 2007. <br />Approximately 40 acres of the 85-acre site were disturbed by mining activities. Reclamation activities <br />have been concurrent with mining and, consistent with the approved reclamation plan, the site now <br />includes a 32-acre lined water storage reservoir. The rernaining site acica-e consists of reservoir <br />shoreline, access roads, rangeland, and previously undisturbed areas. <br />The water storage reservoir has been lined to the design standard referenced in the August 1999 State <br />Engineer Guidelines for Lining Criteria for Gravel Pits and approved by the Office of the State Engineer, <br />March 10, 2008 (see attached letter). In addition, the reservoir shorelines and other disturbed areas have <br />been graded and seeded. Reseeding has also been performed over much of the previously disturbed and <br />seeded areas. Additional reseeding and weed control will continue, as needed, until the final reclamation <br />standard is met. <br />It is our understanding that a financial warranty of $466,700.00 has been posted for the Raindance Sand <br />and Gravel Mine permit. The table below summarizes the existing mining disturbances and proposed <br />new financial warrantv for final reclamation of the Raindance Sand and Gravel Mine. <br />1499 West 120th Avenue. Suite 200 (303) 452-6611 0 Fax (303) 452-2759 <br />Denver, Colorado 80234-2759 www.applegategroup.com