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aj w Z <br />STATE OF COLOMDO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 C O L O R A D O <br /> <br />Phone: (303) 866-3567 D IV IS I ON OF <br />RECLAMATION <br />FAX: (303) 832-8106 <br />Z-- <br />MINING <br />November 16, 2007 <br /> SAFETY <br /> <br />Joe Dodge rr <br />Mr Bill Ritter, Jr. <br />. Governor <br />1122 W. Keener R. Harris D. Sherman <br />Ajo, AZ 85321 Executive Director <br /> Ronald W. Cattany <br /> Division Director <br /> Natural Resource Trustee <br />Re: Penn Mountain Mining, Inc. - Bullger Basin P1 r, Permit No: M-1985-022 <br />Park County; Approval of Extension Request <br />Dear Mr. Dodge: <br />The Division of Reclamation, Mining, & Safety (DRMS) received the letter from Penn Mountain Mining, Inc. <br />(Operator) dated October 24, 2007 requesting an extension of time for recalculation of the Financial Warranty at <br />the Bullger Basin Placer. <br />DRMS grants your requested extension until June 30, 2008, at which time DRMS will recalculate the Financial <br />Warranty based on information available at that time. <br />Regarding the reclamation cost estimate and revised Financial Warranty, DRMS and Operator are in agreement <br />that the existing Financial Warranty of $13,225 is inadequate considering the current level of disturbance on the <br />site. DRMS further recognizes that the newly calculated Financial Warranty contains disproportionately greater <br />costs with respect to revegetation and the approved seed mix, and may warrant revision. Operator can address <br />this issue by means of a Technical Revision JR) to the existing Reclamation Plan. DRMS has individuals on <br />staff with substantial experience in this area, and are available to lend assistance in selection of a revised <br />revegetation seed mix more appropriate for that location. The TR should be submitted by March 30, 2008 to <br />give DRMS sufficient time for review. <br />Meanwhile, there is an outstanding issue that Operator must rectify as soon as possible. The Operator is not a <br />registered entity with the Colorado Secretary of State. After registration with the Secretary of State has been <br />completed, please notify DRMS so that we may make the appropriate entry in our records. <br />If you have any questions, you may call me at (303) 866-3567. <br />Sincerely, <br />David A. Bird <br />Environmental Protection Specialist, Senior Geochemist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines