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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 />7 October 2010 <br />Mr. Randy Whicker <br />Cotter Corporation <br />P.O. Box 1750 <br />Canon City, CO 81215 <br />Re: Schwartzwalder Mine, Permit No. M-1977-300, Approval of Technical Revision No. TR 15 <br />Dcar Mr. Whicker: <br />t1V RADO <br />I O N O F <br />M ATION <br />NING <br />- !St - <br />SAFETY <br />On 7 October 2010 the Division of Reclamation, Mining and Safety (Division) approved the Technical Revision TR-15 <br />application submitted to the Division by Cotter Corporation (Cotter) on 5 October 2010, addressing the following: <br />Expand alluvial groundwater capture and treatment capabilities <br />The terms of Technical Revision No. TR-15, as approved by the Division, are hereby incorporated into Permit No. M- <br />1977-300. All other conditions and requirements of Permit No. M-1977-300 remain in full force and effect. <br />Although Cotter's current plan is to install only one sump / French drain combination in the near term, this TR includes <br />the provision that up to three additional sump/drain combinations may be installed at some future date. If Cotter decides <br />to trove forward with installation of one or more of the additional facilities, Cotter must provide written notification of its <br />intent to the Division before proceeding with the work on the ground. Financial Warranty implications of the additional <br />facilities will be addressed as needed at that time. <br />The current financial warranty for this site is $1,099,301.50. The estimated reclamation liability amount for this revision <br />is $57,000.00. Therefore, the new reclamation liability amount for this site is $1,156,301.50. This can be accomplished <br />by submitting a rider to the existing financial warranty or by submitting a separate financial warranty in the amount of <br />$57,000.00. Please submit the additional bond amount before commencing work on the ground under this TR, or within <br />30 days from the date of this letter. <br />You may contact me with questions at 303-866-3567 x8108. <br />Si erely, <br />U I? <br />David Bird <br />Reclamation Specialist <br />cc: John Hamrick - Cotter Corporation (via email) <br />Amory Quinn - Cotter Corporation (via email) <br />Tony Waldron - DRMS <br />Office of Office of <br />Mined Land Reclamation Denver - Grand )unction - Durango Active and Inactive mines