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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 />August 13, 2010 <br />Peter Kearl <br />Oldcastle SW Group, Inc. dba United Companies of Mesa County <br />P.O. Box 3609 <br />Grand Junction, CO 81502 <br />RECEIVED <br />AUG 16 W1 <br />Didion or <br />l?tilg11ik4J ?11?1 a?''. <br />Re: Norwood Pit, Permit No. M-1988-037, Surety Increase Notice, SI-02. <br />Dear Mr. Kearl, <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. Pineda <br />Director <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, DRMS has updated the reclamation cost estimate (copy enclosed). The estimated <br />reclamation liability is now $245600.00. This is an increase of $66,000.00 from the 2001 increase with the <br />amendment of the permit. Clearly the site is under bonded. Therefore, pursuant to Section 34-32.5-117(4) of <br />the Colorado Land Reclamation Act, adequate financial warranty must be submitted to DRMS within 60 days, <br />(October 12, 2010) of the mailing date of this notice. <br />Based on the August 3, 2010 inspection current conditions noted an increase in disturbed acreage, increase in <br />cut and fill slopes on the north and east pit edges and an increase in highwall backfill liability to the south. The <br />acreage increase in the calculations since the last update was only 3 acres. However, price of seed has increases <br />dramatically since 2001. The highwall lengths are what they are. The Division suggests United review its mining <br />plans to see if adjustments can be made to reclaim the highwalls concurrent to continued mining in Phase 3 and <br />4 to reduce reclamation liabilities. <br />If you need additional information, please contact me at the Division of Reclamation, Mining, and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117. <br />Sincerely, <br />G. Russell Means <br />Environmental Protection Specialist <br />Office of <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines