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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 />March 1, 2010 <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mr. Christopher L. Varra <br />Varra Companies Inc. James Martin <br />Executive Director <br />8120 Gage St. <br />Frederick, CO 80516 <br />Re: Heintzelman Project (Pit 116), DRMS File No. M-2009-018, 112c Decision Letter - Conditions, Financial <br />and Performance Warranty Request - Construction Material Operation <br />Dear Mr. Varra: <br />On March 1, 2010, the Division of Reclamation, Mining and Safety approved your 112c mining permit application. The <br />conditions to the approval are noted below: <br />Commitment No. Description <br />Varra Companies, Inc. shall request in writing to the Division of Reclamation, Mining and <br />Safety (DRMS) that the financial warranty be increased prior to opening additional phase(s). <br />An increase of the financial warranty shall be requested, and provided with the letter to the <br />DRMS, by Varra Companies, Inc. to its bonding/surety provider prior to opening and mining <br />additional phase(s). The increased financial warranty and updated bond forms shall also be <br />provided to the DRMS from Varra Companies, Inc. bonding surety provider. The DRMS will <br />process the request to increase the financial warranty under a Surety Increase (SI) revision. <br />Stipulation No. Description <br />Prior to exposing groundwater, Varra Companies, Inc. shall either: <br />a) Obtain a court approved augmentation plan. <br />OR <br />b) Obtain approval from the Division of Water Resources that acknowledges permanent <br />compliance with the Office of State Engineer's requirements regarding exposed groundwater. <br />2. Prior to exposing groundwater, Varra Companies, Inc. shall either: <br />a) Collect five (5) quarters of baseline data, to be collected on a monthly basis, from the <br />approved monitoring wells and submitted as a Technical Revision. <br />OR <br />b) Provide the DRMS with historic groundwater data, through a Technical Revision, which <br />adequately characterizes the local subsurface hydrology. Upon submittal of a Technical <br />Revision, DRMS will review the data and establish dewatering trigger points. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines