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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 />om 12 2010 <br />Iii ?? ?? <br />0/8/2010 <br />1 D Roy Karo <br />Seneca Coal Company, LLC <br />37796 RCR 53 <br />Hayden, CO <br />81639 <br /> <br /> COLORADO <br /> DIVISION OF <br />RECLAMATION <br /> MINING <br /> <br /> SAFETY <br /> Bill Ritter, Jr. <br /> Governor <br /> Mike King <br /> Executive Director <br /> Loretta E. Pineda <br /> Director <br />RE: Mesa Gravel Pit, File No. M-1982-036, Succession of Operators Application (SO2), Reclamation Costs Update ?- <br />Dear Mr. Karo: <br />On October 7, 2010 the Division of Reclamation, Mining and Safety (DRMS) received the Transfer of Permit and <br />Succession of Operators Application, submitted to DRMS by Seneca Coal Company, LLC, that would transfer the <br />reclamation permit no. M-1982-036 to Sage Creek Coal Company, LLC. <br />In an effort to ensure the financial warranty remains adequate to reclaim the above referenced site per the requirements <br />of the approved reclamation plan, DRMS staff have updated the reclamation cost estimate (copy enclosed). Please review <br />the enclosed figures as soon as possible and contact our office if any calculation errors are noted. <br />Staff calculations estimate the cost to reclaim the above referenced site to be $132,273.00. This is an increase of <br />37273.00 over the 95000.00 currently held by DRMS. This estimate is based on information provided in Exhibit L <br />(revised May 1998) of the reclamation permit File No. M-1982-036. <br />DRMS staff believes that the above referenced Exhibit L contained an error regarding the amount of topsoil to be replaced <br />over the disturbed area (see pg. L-7 of Exhibit Q. Staff believes that the volume calculated in this exhibit was calculated for <br />spreading topsoil over fifteen acres at a depth of six inches. However, the approved reclamation plan requires that topsoil <br />be replaced at a minimum depth of eighteen inches (see pg. E1, paragraph 2, Exhibit E Reclamation Plan, revised May <br />1998). If you feel that DRMS staff is in error regarding this calculation, please respond as soon as possible. <br />If you are in agreement with the above stated required financial warranty amount, please respond confirming this, so that <br />DRMS *staff may make the necessary changes in our database and approve S02. <br />Office of Denver • Grand Junction • Durango Office of <br />Mined Land Reclamation Active and Inactive Mines