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<br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 60203 <br />Phone; (303) 866-3567 <br />FAX: (303) 832-8106 <br />July 2, 2003 <br />STATE OF COLORADO <br />Ann Tatum <br />Jim Tatum and Associates <br />P.O. Box 28 and 8703 Bonhomme <br />Weston, CO 81091 Houston, TX 77074 <br />Re: Basin Resources - Golden Eagle Mine- C-81-013 <br />Dear Mr. And Ms. Tatum: <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING-SAFETY <br />Bill Owens <br />Governor <br />Greg E. Watcher <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />This letter is written in response to a letter received from Ann Tatum (dated and received June 25, 2003), a <br />letter received from Jim Tatum and Associates (dated January 16, 2003 and received January 23, 2003), and <br />pursuant to a telephone conversation of July 1, 2003 between Ann Tatum and David Berry. <br />Obiection to Bond Release <br />is The June 25, 2003 letter indicates an objection to an unspecified bond release action. During our <br />conversation of July 1, 2003, Ms. Tatum indicated that the June 25, 2003 letter was written in response to a <br />newspaper publication that referenced a bond release application for the New Elk Mine permit, rather than <br />any Basin Resources application. To date, we have not received any application for bond release for the New <br />Elk permit. Based upon this information and understanding, the Division of Minerals and Geology will not <br />consider the June 25, 2003 letter to be a an objection to any action at this time. If this is not correct, please <br />notify us. <br />Any person with a valid legal interest which might be adversely affected by any bond release (or permitting) <br />action may provide comments and/or objections to a specific action. We understand that you may choose to <br />objeci to any action (bond release or permitting), and it is recommended that you continue to monitor the <br />local newspaper publications to ensure that you are aware of any bond release and/or permitting actions in <br />your area. Objections and/or comments must be sent during the pertinent comment/objection timeframe, and <br />must specify the action for which a comment or objection is being filed. <br /> <br />The June 25, 2003 letter also requests copies the bond release documents. As always, we will provide copies <br />of any requested materials, but given the possible misunderstanding referenced above, we will await further <br />direction from you regarding any document requests. <br />Water Well(s) <br />The January 16, 2003 letter references a previous claim regarding water well damage. This issue was <br />previously investigated by DMG (report dated June 6, 1995). The findings of the DMG investigation were <br />later corroborated by the December 1, 1997 ruling of the District Court, County of Las Animas (92 CV 127), <br />and by the January 5, 2000 ruling of the Interior Board of Land Appeals (IBLA 96-90, 96-91). The previous <br />•