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cor?ei- <br />Mr. Tony Waldron <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />August 9, 2010 <br /> <br />Re: Schwartzwalder Mine, Permit No. M-1977- inn <br />r/ <br />TR-•12 Surety ved?c ion v" 14 e,1'6 <br />Dear Mr. Waldron: <br />Cotter Corporation (N.S.L.) ("Cotter") respectfully requests a reduction of $1,653,699 to the <br />additional reclamation amount set forth in the July 8, 2010 letter from David Bird to Gus Gaviotis <br />regarding Partial Approval for Technical Revision No. 12, and sets forth in this letter the rationale <br />supporting the request. <br />The Division has reviewed the surety amount for the partial approval of TR-12 and arrived at a <br />figure of $2,173,000, see Attachment 1 and letter dated July 8, 2010 from David Bird. Included <br />in the Division's cost estimate were dollar amounts for mobilization and purchase of water <br />treatment equipment. Both of these activities have now been paid for by Cotter. $500 per cubic <br />foot of resin was used in initial estimates; however, after paying actual invoices, the correct <br />amount is $131 per cubic foot. <br />Cotter has applied for and received the Radioactive Materials License ("RML") and the surety <br />amount for Cotter's two RMLs at the Schwartzwalder site has been approved by the Colorado <br />Department of Public Health and Environment ("CDPHE"). Attachment 2 shows the calculations <br />used in arriving at the surety amount under the RMLs and Attachment 3 (letter dated July 29, <br />2010 from CDPHE) shows the approval of such amount by CDPHE. Several line items in the <br />Division's bonding calculations are duplicated in the RML surety amount, namely, resin <br />shipping, resin stripping and disposal, and demobilization. Cotter believes that reclamation at the <br />Schwartzwalder Mine can be accomplished in three years, one year for planning and permitting <br />approval, and two years for construction. Attachment 4 shows Cotter's calculations for bonding <br />incorporating the above changes. The total bonding required under the partial approval of TR-12 <br />should be $519,301. <br />Please call if you have any questions. <br />Sincerely yours, <br />s <br />ohn S. Hamrick <br />Vice President, Milling Operations <br />Cotter Corporation <br />P.O. Box 1750 <br />Canon City CO 81212 <br />719-275-7413, x202