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P 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 COLORADO <br />Phone: (303) 866-3567 D I V I s t o N o f <br />RECLAMATION <br />FAX: (303) 832-8106 MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />.? May 13, 2009 Harris D. Sherman <br />Executive Director <br />Daniel Hahn Ronald W. cattany <br />Division <br />Reclamation Ridge, LLC Director <br />Natural Resource Trustee <br />469 CR 6i <br />P.O. Box 1147 <br />Granby, Colorado 80446 <br />RE: Reclamation Ridge, LLC; File No. M-1983-102 <br />Thompson Resource aka Horn Gravel Pit; Financial Warranty Increase (SI-02) <br />Dear Mr. Hahn, <br />On April 16, 2009, the Division of Reclamation, Mining and Safety (Division) conducted an <br />inspection of the Thompson Resource aka Horn Gravel Pit, File No. M-1983-102. <br />According to Rule 4.2.1(1) and (2), the Division may review a financial warranty at any time to <br />determine if the amount is sufficient to perform reclamation. The Division currently holds a <br />financial warranty of $112,000. Based on the inspection, the financial warranty is not sufficient <br />to perform the approved reclamation at the site. The financial warranty increase is due in part <br />by the lack of topsoil salvaging during the most recent mining activity. Please reference the <br />April 16, 2009 inspection report for additional information. The Division prepared a <br />reclamation cost estimate for the Thompson Resource aka Horn Gravel Pit based on the <br />inspection. The Division estimates the cost to reclaim the current disturbance is $147,900. This <br />is an increase of $35,900 from the current financial warranty. <br />This letter is to inform you that your financial warranty will need to be revised within 60 days <br />from the date of this letter. A copy of calculations used to determine this cost is attached for <br />your review. <br />The operator has two options regarding the amount of required bond; <br />1. Document there is sufficient topsoil on-site to replace topsoil per the approved reclamation <br />plan. <br />2. Submit additional financial warranty in the amount of $35,900. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines