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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 -Iqm <br />Denver, Colorado 80203 C O L O R A D O <br />Phone: (303) 866-3567 D IVI S I ON OF <br />RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />Bill Ritter, Jr. <br />June 29, 2010 Governor <br />James B. Martin <br />Executive Director <br />Mr. Matthew Young Loretta E. Pirleda <br />Applegate Group, Inc. Director <br />1499 West 120th Avenue, Suite 200 <br />Denver, CO 80234 <br />RE: North Weld Gravel; DRMS File No. M-1976-018; Production Rate Increase - <br />Information Request <br />Dear Mr. Young, <br />The Division of Reclamation, Mining and Safety (Division) received your above referenced <br />notification of increased production rates at the North Weld Gravel Site. The Division does not <br />regulate the rate of production for permitted mine sites. Therefore, the Operator may increase or <br />decrease production at anytime without Division approval. Any changes to the rate of production <br />may be specified in the Operator's Annual Report to the Division. As noted in the inspection <br />report dated April 29, 2010, the maximum allowed disturbed acreage for the North Weld Gravel <br />site is 20 acres or a single phase. The Division currently holds a financial warranty in the amount <br />of $10,000.00. Based on the observations of the inspection conducted on April 29, 2010, the <br />financial warranty is not adequate to reclaim the disturbed area. The financial warranty will be <br />recalculated and set at an amount to allow for reclamation of the maximum allowed disturbed <br />acreage. Notice of the increased financial warranty will be sent under separate cover. <br />If the increased rate of production will require the Operator to disturb more than 20 acres at any <br />given time, then a Technical Revision must be filed with the Division. At such time, the Division <br />may adjust the financial warranty to account for an increase in the maximum allowed disturbed <br />acreage. <br />If you have any questions, please contact me at 303-866-3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />CC: Lee Bellmore, North Weld Gravel, RLLP <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango <br />Office of <br />Active and Inactive Mines