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<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 27, 2010 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br /> <br />Mr. Frank Leone Jr. James B. Martin <br /> Executive Director <br />Leone Sand & Gravel LLC <br /> <br />2400 E Main Street Loretta E. Pineda <br /> Director <br />Trinidad, CO 81082-3448 <br />Re: File No. M-2010-004, Leone Huerfano Gravel Pit, 112c Decision Letter - Conditions, Financial and Performance <br />Warranty Request - Construction Material Operation <br />Dear Mr. Leone Jr.: <br />On May 26, 2010, the Division of Reclamation, Mining and Safety approved your 112c mining permit application. The <br />conditions to the approval are noted below: <br />Stipulation No. <br />Description <br />1 Prior to affecting land within the permit area, the Operator shall obtain notarized agreements between <br />Leone Sand and Gravel, LLC. and Huerfano County for both County Road 611.1 and County Road 611 <br />that Leone Sand and Gravel, LLC. will provide compensation for any damage to these structures as a <br />result of their mining and reclamation operation. This is in accordance with Rule 6.4.19 of the Minerals <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of <br />Construction Materials. <br />The amount of financial warranty set by the Division for this operation is $61,000.00. 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 <br />a financial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty <br />from 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 ISSUED BY THE - <br />DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. A PERMIT WILL NOT BE <br />ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me. <br />Sincerely, <br />Jared Ebert <br />Environmental Protection Specialist <br />cc: Joe Gagliano, L J Development, Inc. <br />STATE OF COLORADO <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines