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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 />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br /> Bill Ritter, Jr. <br /> <br />August 29, 2008 Governor <br /> Harris D. Shennan <br /> Executive Director <br /> Ronald W. Cattany <br />Gary Isaac Division Director <br />CAM-Colorado, LLC Natural Resource Trustee <br />P.O. Box 98 <br />Loma, CO 81524 <br />Re: Red Cliff Mine (Permit No. C-2008-086) <br />New Permit Application Preliminary Adequacy Review <br />Dear Mr. Isaac: <br />The Division of Reclamation, Mining and Safety (Division) has completed the initial adequacy <br />review for the Red Cliff Mine permit application submitted by CAM-Colorado, LLC (CAM). <br />The majority of the application has been reviewed and this letter presents our preliminary <br />findings as to the substantive adequacy of the application. Due to the complexity of the <br />application, we are still in the process of reviewing some portions of the application including <br />certain engineering and design related sections of the permit application package (PAP). The <br />Division has the following questions and comments for those portions of the PAP that have been <br />reviewed. <br />Rule 2.03 LegaL Financial, Compliance and Related Information <br />An Applicant Violator System (AVS) evaluation check was done on July 18, 2008 following the <br />Division's completeness review of the PAP and there are no violations listed. The Division has <br />the following comments regarding the ownership and control information contained in Sections <br />2.03.4(1) to (4) and 2.03.5. <br />1. Wexford Capital, LLC, Page 2.03-22 (04/08) <br />a) In AVS, Gary Jacobi, Vice President, was still Active, where on the permit page he has <br />an End Date of 8/11/06. Please have either AVS updated to correctly reflect the End <br />date or either update the permit page to show Gary Jacobi as an Active officer. <br />b) In AVS, Henry Scholder, Vice President, with a Begin Date of 1/3/05 is listed, but on <br />the permit page he is not. Please update the permit page to reflect this or update AVS <br />appropriately. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines