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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 />10 October 2008 <br />Mr. Ross Gubka, P.E. <br />Western Fuels - Colorado <br />P.O. Box 628 <br />Nucla, CO 81424 <br />Re: New Horizon Mine - Permit No. C-1981-008 <br />SL-11 - Partial Phase I and Phase II Bond Release <br />Adequacy Review <br />Dear Mr. Gubka: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division received your application for SL-11 on 13-May-2008, and called it <br />Complete for purposes of filing on August 5th. A bond release inspection occurred on <br />the 251h of August, and the Division's Inspection Report was issued on September 8th <br />The SL-11 package has been reviewed for adequacy. Comments generated by the review <br />are detailed below. <br />Application - Page 1 <br />1) Permit No. C-1981-008 was approved on 26-May-1983. Please correct the date <br />shown in the application. <br />2) Phase of Bond Release Requested - This description does not include 2700 Road, <br />BB Road, and 5th Road, but these features are highlighted on Map R-2 and are <br />also included in the table describing Phase 2 release (page 10). Please clarify <br />whether it is the intent of SL-11 to include any portions of the County Roads in <br />either Phase 1 or Phase 2 release requests. <br />3) Bonding - The current bond liability for the New Horizon Mine is $3,150,563, <br />but the current amount of bond held is $4,000,000. Please correct the application <br />to reflect these figures. <br />4) Page 1 - Legal Description - Section 1 is in R 16 W, as opposed to R 15 W. <br />Please correct this typographical error. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines