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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 27, 2008 ?1111 <br />Mr. Gary Webber <br />Precision Excavating, Inc. <br />P.O. Box 790 <br />Hayden, CO 81639 <br />CbM <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: Notice of Cancellation of Bond No. 929181214, Camilletti Milner Pit #2, Routt County, Permit No. M- <br />2001-023 <br />Dear Mr. Webber: <br />The Western Surety Company has notified the Division of Reclamation, Mining and Safety of the cancellation of Surety <br />No. 929181214, in the amount of $100,000.00, effective July 24, 2008. <br />Prior to this expiration date, you must submit a substitute Financial Warranty for 929181214, in the amount of <br />$100,000.00. <br />Enclosed is a Financial Warranty - Corporate Surety form. Please execute this form and return it to this office by June <br />24, 2008. If the executed form has not been received by June 24, 2008, the Division will schedule this matter before the <br />Mined Land Reclamation Board at their August 13, 2008 meeting fora Formal Public Hearing to consider a Notice of <br />Violation/Cease and Desist Order and possible Civil Penalties of not less than one hundred dollars ($100.00) per day nor <br />more than one thousand dollars ($1,000.00) per day for each day after July 24, 2008, that the violation occurs, for your <br />failure to submit substitute surety. <br />If you wish to use a different method for posting the required Financial Warranty, as described under Rule 4.3 of the <br />Rules and Regulations, please contact this office for the applicable forms, or if you have any questions. <br />Sincerely, <br />Elizabeth Taliaferro <br />Program Assistant <br />Enclosure <br />cc: Steve Shuey, Division of Reclamation, Mining and Safety <br />Carl Mount, Division of Reclamation, Mining and Safety <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines