2009-01-08_GENERAL DOCUMENTS - M1977297

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USDA Dolores Public Lands Office U SDA 29211 Highway 184 (,8 Q? P Box 210 USDA Forest Service Dolore , CO 81323 USDI Bureau of Land Management San Juan National Forest Ph (970) 882-7296 Fax (970) 882-6841 San Juan Center Dolores Ranger District Dolores Field Office http://www.fs.fed.us/r2/sanjuan http://www.co.blm.gov _ In Reply Refer To: COC 52755 3809 (C0800) ?Xo Date: 6 January 2009 Jason Smith Umetco Minerals Corporation 43 CFR 3809 2754 Compass Drive, Suite 280 Surface Management / Grand Junction, CO 81506-1506 V,.1 ;Plan of Operations ? V R ?0 S ,d v Mr. Smith; I appreciate today's phone call and subsequent e-mail, regarding a letter (December 22, 2008) concerning an open shaft associated with the Burro Plan of Operations. Thank you for the documentation, showing that DMG accepted the transfer of liability for the Burro ChED Umetco to Golden Eagle. There are two items that need to be addressed. JAN 13 2009 Division of Reclamation, 1) Umetco's responsibility for the Burro Plan of Operations: Mining) and Safety It is understood that DRMS has previously accepted a transfer of responsibility under their authority. However, Umetco has not informed the BLM of any request to close their Plan of Operations. Any transfer of responsibilities must be submitted to the BLM, with documentation of concurrence from the transferee, what if any responsibilities the transferee will assume (existing disturbance and any conditions that may develop from activities that occurred while Umetco was the operator), and an adequate financial guarantee must be approved by the BLM. 2) Umetco's responsibility for reclamation of the open shaft: Per BLM regulations (43 CFR §3809.116), BLM must receive documentation that a transferee accepts responsibility for any previously accrued obligations and must accept an adequate replacement financial guarantee before the transfer of any responsibilities may be recognized. At this time, Umetco is considered to be responsible for obligations that accrued or conditions that were created while responsible for operations conducted on the mining claims or in the project area of the Burro Plan of Operations. Our file shows that three shafts were used for ventilation. It is understood, that the Burro #3 shaft was subsequently backfilled. Regardless as to whether Umetco is the operator/claimant at this time, Umetco is responsible for reclamation that did not permanently backfill the shaft. As requested in the December letter, please "respond in writing regarding Umetco's intentions for the open shaft, within the specified time period.