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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 />August 6, 2008 ?/ <br />Mr. Gerry Mayne <br />Mayne Industries, Inc. <br />P.O. Box 1689 <br />Gypsum, CO 81637 <br />Mr. Joseph C. Welte . <br />Mayne Block and Stone Company <br />P.O. Box 533 <br />Pueblo, CO 81002 <br /> <br /> <br /> <br /> <br /> <br />KEEECOVED <br /> Bill Ritter, Jr. <br /> <br />L U <br />AUG iL fj 2008 Governor <br /> Harris D. Sherman <br />Division of Reclamation, Executive Director <br />Mining and Safety <br /> Ronald W. Cattany <br /> Division Director <br /> Natural Resource Trustee <br />Re: Mayne Industries, Inc., Dotsero Quarry, Permit No. M - 1987 - 074, Reclamation Cost Update and <br />Succession of Operator, SO-03. woo' <br />Dear Mr. Mayne: <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved <br />reclamation plan, DRMS has updated the reclamation cost estimate (copy enclosed). Therefore, pursuant to Section 34 <br />-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to the <br />DRMS within 60 days of the mailing date of this report. The increase needs to be accepted prior to October 6, 2008. <br />Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. <br />Staff calculations estimate the cost to reclaim the site to be $35,272.00, rounded off to $35,500. 00. This is an increase of <br />$1,115.00 over the $34,385.00 currently held by the Division and the Bureau of Land Management. The estimate is <br />based on conditions observed during the latest inspection conducted June 25, 2008. This inspection and bond calculation <br />now also apply to the Succession of Operator No. 3 submitted to the Division on July 22, 2008. <br />Per Rule 4.2.1(6), when mining on federal land and the federal land management agency requires that a Financial <br />Warranty be posted with their agency, the amount of Financial Warranty posted with the state shall be the difference <br />between the amount required to be posted by the federal land management agency, and the amount required by the Mined <br />Land Reclamation Board. Therefore, the successor operator must submit $35,400.00 to the Glenwood Springs Bureau of <br />Land Management and the remaining $100.00 must be submitted to the Division of Reclamation Mining and Safety <br />before the Succession of Operator can be finalized. The DRMS will require documentation that the B.L.M. has accepted <br />the bond for the permit file. Any questions regarding bonding should be directed to Elizabeth Taliaferro, telephone no. <br />303.866.4084. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand Junction <br />Field Office, 101 S. 3`d Street, Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.2042. <br />Office of <br />Office of Active and Inactive Mines <br />Mined Land Reclamation Denver • Grand Junction • Durango <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />SAFETY