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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 />1/ February 8, 2008 <br />Brent Kerr <br />United Co. / Oldcastle S.W. <br />P.O. Box 3609 <br />RECEIVED <br />FEB 13 2000 <br />Division of Reclamation, <br />Mining and Safety <br />COLORADO <br />D I V I S 10 N 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 />Grand Junction, CO 81502 <br />Re: BLM Pit #1, Permit No. M - 2001-100, Reclamation Costs Update and Notice of Surety Increase SI-01. <br />Dear Mr. Kerr: <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 4/08/2008. Please <br />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 $33,269.00. This is an increase of $2,692.00 over the <br />$30,577.00 currently held by the B.L.M.. The estimate is based on conditions observed during the latest inspection. <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. The reclamation cost increase can either be placed with the DRMS or with the B.L.M. Grand <br />Junction Field Office. If the bond increase is placed with the B.L.M. the DRMS will require a copy of the receipt for the <br />permit file. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand Junction <br />Field Office, 101 S. 3rd Street, Suite 301, Grand Junction, Colorado 81501, telephone no. 970.623.5596. <br />Sincerely, <br />Travis Marshall <br />EPS I, Grand Junction Field Office <br />Cc: Carl Mount, Senior Environmental Protection Specialist, North Team Supervisor. <br />Scott Gerwe, B.L.M. Grand Junction Field Office. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines