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Savage and Savage Environmental <br />practical solutions for environmental issues <br />4610 Haystack Drive 970 674 8080 telephone <br />Windsor, Colorado 80550 970 674 8088 facsimile <br />' savageandsavage a0earthlink.net <br />July 30, 2008 <br />Mr. Jim Hendricks <br />P.O. Box 5280 <br />Durango, CO 81302 <br />Re: Notice of Application for Phase III Bond Release for the Oakridge Energy, Inc. <br />Carbon Junction Mine (CDRMS file C-92-080) <br />Dear Jim : <br />Oakridge Energy, Inc. is applying for a Phase III final liability and bond release for <br />portions of the Carbon Junction Mine (Colorado Division of Reclamation, Mining, and <br />Safety permit C-92-080) in accordance with the approved reclamation plan. The subject <br />of the bond release is a release from liability and reclamation bond for those areas where <br />final reclamation has been completed and successful establishment of vegetation has been <br />demonstrated under the approved reclamation plan. These areas include the former North <br />Pit, the North Pit Haul Road, the Previously Reclaimed Spoils Area, Topsoil Stockpile <br />#2, the South Pit Drill Pad, the Equipment Yard, Topsoil Stockpile #7, the Carbon <br />Junction Canyon reconstruction channel, and ancillary adjacent areas encompassing <br />approximately 30 acres. The current permit area is located within Section 33 of Township <br />35 North, Range 9 West; Section 33, Township 341/2 North, Range 9 West; and Section 4, <br />Township 34 North, Range 9 West of the Ute Line, New Mexico Principal Meridian, La <br />Plata County, Colorado. The mine site is located two miles southeast of the Durango city <br />limits, midway up Carbon Junction Canyon, on Ewing Mesa. This is approximately one <br />mile east of the Highway 160-550 business route junction, lying one mile east of the <br />Animas River. <br />As required by Colorado law, whenever bond release is requested, all interested or <br />affected parties with a valid legal interest must be notified and afforded the opportunity to <br />comment or request an informal conference on the bond release in accordance with Rule <br />3.03.3 of the Regulations of the Colorado Mined Land Reclamation Board for Coal <br />Mining. <br />Carbon Junction Mine <br />Page 1 <br />Phase III Bond Release Notification July 2008