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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 /> <br />FEBU? <br />,)W06mg and Safety n <br />February 2, 2009 <br />Ms. Cindi Byrns <br />Natural Soda, Inc. <br />3200 RBC Road 31 <br />Rifle, CO 81650 <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 />Re: Natural Soda, Inc., Permit No. M -1983 -194, Final Reclamation Cost Estimate, SI-0 1. <br />Dear Ms. Byrns: <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 />-32-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to the DRMS <br />within 60 days of the mailing date of this report. The increase needs to be accepted prior to March 31, 2009. Please <br />review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. <br />The Division of Reclamation Mining and Safety has calculated the bond estimate for the above referenced permit. <br />Staff has calculated the initial reclamation liability for the Nacholite Project using information within the permit file <br />and information submitted by Natural Soda, Inc., Inc. The estimate is based on what it would cost the state to hire a <br />contractor to reclaim the site if the bond was forfeited and not necessarily what it would cost Natural Soda, Inc. to <br />complete the work. <br />Staff's estimate for the reclamation of the site is $1,810,465.00. This is higher than the previous estimate due to the <br />addition of reclamation costs associated with two wells that were not accounted for in the original estimate. Please <br />review the estimate carefully. Should there be any questions or corrections contact staff immediately. For questions <br />regarding bond placement please contact Elizabeth Taliaferro at phone no. (303) 866-3567, extension 8148. <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. When the bond increase is placed with the B.L.M. the DRMS will require a copy of the receipt <br />for the permit file. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. (970) 241-2042. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines