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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 />C O L O R A D O <br />Phone: (303) 866 -3567 <br />DIVISION O F <br />RECLAMATION <br />FAX: (303) 832 -8106 <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />INTEROFFICE MEMORANDUM <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />TO: Jim Stark <br />FROM: Mike Boulay <br />M 5 <br />DATE: November 5, 2010 <br />SUBJECT: Roadside Mine Permit No. C- 1981 -041, Bond Release Cost Estimate Review <br />I am requesting your assistance in reviewing the reclamation bond liability for the Roadside <br />Portals Mine for the Phase II and III bond release (SL07). I received the bond release application <br />in the Grand Junction Field Office on July 06, 2010. I conducted the bond release inspection on <br />September 23, 2010. The inspection report has been completed and is available for your review. <br />As you recall, the cost estimate has been recently updated with MT -06 on July 14, 2010 and SL-06 <br />on September 27, 2010. The reclamation cost estimate will be further revised with SL -07. <br />Snowcap Coal Company, Inc. (SCC) has requested a large dollar amount for release with SL -07 <br />($661,061.00). With MT -06 the Division has not receive additional bond monies for the general <br />cost increases reflected in the revised cost estimate. Likewise, for SL -06, the Division is not <br />proposing to release any bond money. Because of these concurrent permitting actions, the Division <br />will reevaluate the reclamation cost estimate following completion of the SL -07 review and <br />approval process. A new reclamation cost estimate will be prepared and issued with the Proposed <br />Decision and Findings for SL -07, which will in effect significantly reduce the reclamation liability <br />amount. All three of these recent changes to the reclamation liability amount will be accounted for <br />in the final cost estimate completed for SLOT <br />If possible, I would like to have your review completed by November 30, 2010. Please let me <br />know if you require any additional information or documentation to complete your review. <br />Thank you for your assistance. <br />C: Sandy Brown <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction - Durango Active and Inactive Mines <br />