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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 />March 30, 2009 <br />Mr. John Nichols <br />Nichols Gravel Pit L.L.P. <br />P.O. Box 285 <br />Mesa, CO 81643 <br />APR 0 7 2009 <br />Divisio,q of Reclamation, <br />Mi-; ng and Safety <br />COLORADO <br />D I V I S 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 />llel? <br />Re: Nichols Gravel Pit, Permit No. M - 1981 - 013, Reclamation Costs Update and Notice of Surety Increase, <br />SI-01. V-0, <br />Dear Mr. Nichols <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 />-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to the <br />DRMS within 60 days of the mailing date of this report. The increase needs to be accepted prior to May 29, 2009. <br />Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. <br />Staff calculations estimate the cost to reclaim the site to be $72,609.00, rounded off to $72,600.00. This is an increase of <br />$28,450 over the $44,150.00 currently held by the Division. The estimate is based on conditions observed during the <br />latest inspection. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand Junction <br />Field Office, 101 S. 3`d Street, Suite 301, Grand Junction, Colorado 81501, telephone no. (970) 241-2042. If you have <br />questions regarding the placement of the financial warranty with the Division please contact Elizabeth Taliaferro at (303) <br />866-3567 ext. 8148. <br />Sincerely, <br />Travis Marshall <br />EPS I, Grand Junction Field Office <br />Cc: Steve Shuey, DRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines