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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 />February 13, 2009 <br />Mr. Mike Ausburn <br />Vice President,:Pioneer Sand <br />P.O.Box 7650 <br />Colorado Springs, CO 80903 <br />Re: Financial Warrantee Increase, after a site visit on 12/29/08; M-1993-050 <br />COLORADO <br />D I V I S ION 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 />Dear Mr. Ausburn; <br />The division. inspected the site on 12/29/08. At that time the Division had requested the operator (Pioneer <br />Sand) to provide a detailed survey of the total affected acres. The Division received the requested <br />information, on January 31, 2009: 'Based on the information you provided the attached warranty calculation <br />was completed. <br />The current warranty for the site is $25,200.00. The Division was unable to find the warranty calculation <br />that determined the amount at that time and the number of acres that was utilized to come up with the . <br />figure. This calculation was based on the information that was provided on 1/31/09. The maps provided <br />had a total of 24.84 acres affected with 16.17 acres reclaimed. Since the reclaimed sites:have not been <br />released, DRMS, recalculated the re-vegetation cost for the entire 24.84 acres. The earth moving was <br />calculated for a total of 9.0 acres. The calculated warranty for the current disturbed area is $37,949.00. Please <br />provide a rider to the current warranty in the amount of $12,749, no later than April 13, 2009. <br />The total affected acres for the active mining portion should not exceed. 9.0 acres at any given time. DRMS <br />recommends, Pioneer Sand, look at their phased mining plan to see if it can be adjusted to a manageable <br />number rather than the current 12 phases as approved when the site was amended to expand the area to be <br />mined from 11.2 acres to 64.8 acres.. <br />If you have questions, please contact me at (303) 866-3567 xt 8129 <br />Sincerely, <br />Berhan Keffelew <br />Environmental protection Specailist <br />Enclosures: Financial warranty calculation <br />Cc: Elizabeth Talaferro <br />- <br />..Office of' officeof <br />.