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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 />November 20, 2009 <br />COLORADO <br />D I V IS 10 N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mr. Christopher L. Varra Harris D. Sherman <br />Executive Director <br />Sand Land, Inc. <br />8120 Gage St. Ronald W. Catt <br />g Division Director <br />Frederick, CO 80516 Natural Resource Trustee <br />Re: Kurtz Resource Recovery & Land Devlpmnt Proj, Permit No. M- 1999 -006, Financial Warranty Increase, <br />Revision No. SI -1 <br />Dear Mr. Varra: <br />On November 20, 2009 the Division of Reclamation, Mining and Safety (Division) increased the current Financial <br />Warranty for this permit. The previous Financial Warranty calculation of $2,486,383.00 has been revised to reflect the <br />changes to the Mining and Reclamation Plans submitted under Technical Revision — 02. The Division's updated <br />calculations (copy enclosed) estimate the cost to reclaim the site to be $286,979.00. This is an increase of $228,179.00 <br />over the $58,800.00 currently held by the Division. <br />Per our agreement, the Division will grant an additional 30 days beyond the approval date of Technical Revision — 02 to <br />submit the increased Financial Warranty. The increase needs to be accepted prior to December 21, 2009. If you wish to <br />submit a different type of Financial Warranty, you may find the appropriate forms on the Division's website at <br />http: / /mining. state .co.us /Mineral %20Forms.htm <br />If you have any questions, please contact me at (303) 866 -3567 x8116. <br />Sincerely, <br />M ichael A. Cunnin ham <br />Environmental Protection Specialist <br />Enclosure <br />CC: Tony Waldron, DRMS <br />Elizabeth Merry, DRMS <br />Brad Janes, Varra Companies (via e-mail) <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />