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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 />May 4, 2009 <br />Mr. Tim Kunau <br />23945 Lucky Ln <br />Calhan, CO 80808 <br />Re: File No. M-2008-025, Kunau Site, 110c Decision Letter <br />Warranty Request - Construction Material Operation <br />Dear Mr. Kunau: <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Conditions, Financial and Performance <br />On May 4, 2009, the Division of Reclamation, Mining and Safety approved your 110c mining permit application. The <br />conditions to the approval are noted below: <br />Stipulation No. Description <br />COLORADO <br />D I V I S 10 N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mr. Kunau shall request in writing to the Division of Reclamation, Mining and Safety (DRMS) <br />that the financial warranty be increased prior to opening the southern pit. An increase of the <br />financial warranty shall be requested, and provided with the letter to the DRMS, by Mr. Kunau <br />to his bonding/surety provider prior to opening and mining the southern pit. The increased <br />financial warranty and updated bond forms shall also be provided to the DRMS from Mr. <br />Kunau's bonding/surety provider. <br />The amount of financial warranty set by the Division for this operation is $11,218.00. You must submit a financial <br />warranty in this amount and a performance warranty in order for us to issue a permit. In the event you have requested a <br />financial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty from <br />Rule 4.3. Then contact us so that we can provide you with the appropriate warranty form. We have enclosed a <br />performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me at (303) 866-3567, x8116. <br />Sincerely, <br />a <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />Enclosure <br />cc: Tony Waldron, DRMS <br />Office of <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines