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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 />COLORADO <br />Phone: (303) 866-3567 DIVISION O F <br />RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> - SL - <br /> SAFETY <br />Bill Ritter, Jr. <br />Governor <br />June 17, 2010 James B. Martin <br />Executive Director <br />Mr. Bob Willits Loretta E. Pineda <br />Willits Company, Inc. Director <br />P.O. Box 825 <br />Cheyenne; WY 82003 <br />Re: File No. M-2010-034, McEndaffer Mine, 110c Decision Letter - Financial and Performance Warranty <br />Request - Construction Material Operation <br />Dear Mr. Willits: <br />On June 17, 2010, the Division of Reclamation, Mining and Safety approved your 110c mining permit application. <br />The amount of financial warranty set by the Division for this operation is $17,000.00. 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 a <br />financial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty from <br />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 <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me (303)866-3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />Enclosure <br />CC: Tony Waldron, DRMS <br />Stevan O'Brian, Environment, Inc. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines