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J&T Consulting, Inc. <br />March 19, 2009 <br />Mr. Michael Cunningham <br />Environmental Protection Specialist <br />State of Colorado <br />Division of Reclamation, Mining, & Safety <br />1313 Sherman Street - Room 215 <br />Denver, CO 80203 <br />RE. GP Ranches, LLC. -West Farm Pit- 112(c) Application -File No. M-2008-078 <br />Adequacy Review 02 Response <br />Dear Mr. Cunningham, <br />We have received the Division's Adequacy Review 02 request for additional information relating <br />to GP Ranches, LLC's (GP) application for permit number M-2008-078. GP offers the following <br />additional information addressing the Division's comments and questions. <br />6.4.12 Exhibit L - Reclamation Costs <br />1. The Division has reviewed the Applicant's reclamation bond estimate and found that the <br />dewatering component of the estimate needs to be increased The Division has calculated the cost <br />to dewater Phase 1 and determined that the unit cost is $0.0003481gallon. This figure can be <br />applied to dewatering component of Phases 2-18. Please revise the reclamation bond estimate to <br />reflect the Division's unit cost of $0.0003481gallon for dewatering the pit. <br />A revised Exhibit L Reclamation Costs is attached that uses the unit cost of $0.000348/gallon <br />for dewatering the pit. <br />2. The Applicant has proposed posting the reclamation bond in phases. Rule 4.2.1(4) requires that the <br />Financial Warranty shall be sufficient to assure the completion of reclamation of affected lands if <br />the Office has to complete such reclamation due to forfeiture. Please commit to notifying the <br />Division in writing prior to opening a new mining phase(s). At such time the Applicant shall <br />provide the Division with the increased financial warranty and associated bond forms. Please note <br />that the financial warranty that the Applicant has proposed for each phase is subject to Division <br />review upon receipt of notification to open a new phase. <br />GP commits to notifying the Division in writing prior to opening each mining phase, and commits <br />to providing the Division with the increased financial warranty and associated bond forms for <br />each phase prior to opening it. <br />V 0 1400 W 122 "d Avenue - Suite 120 • Westminster CO 80234 • Ph: 303-457-0735 • Fax: 303-920-0343