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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 />November 15, 2010 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Mr. Timothy Williams Executive Director <br />Timothy D. and Betty J. Williams Loretta E. Pffieda <br />5588 CR 210 Director <br />P.O. Box 243 <br />Walsenburg, Colorado 81089 <br />Re: File No. M-2010-054, Williams Pit No. 1, 110c Decision Letter - Financial and Performance <br />Warranty Request - Construction Material Operation <br />Dear Mr. Williams: <br />On November 14, 2010, the Division of Reclamation, Mining and Safety approved your 1 IOc mining permit <br />application. <br />The amount of financial warranty set by the Division for this operation is $26,600.00. You must submit a <br />financial warranty in this amount and a performance warranty in order for us to issue a permit. In the event you <br />have requested a financial warranty form, we have enclosed it in this letter. If you have not, please select a type <br />of financial warranty from Rule 4.3. Then contact us so that we can provide you with the appropriate warranty <br />form. We have enclosed a performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS <br />BEEN ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND <br />PERFORMANCE WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE <br />ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRAI? <br />If you have any questions, please contact me at (303) 866-3567 Ext. 8124. <br />Sincerel , <br />Peter S. Hays <br />Environmental Protection Specialist <br />Enclosure: Performance Warranty <br />cc: Tony Waldron; DRMS <br />Mary Rodriquez; DRMS <br />Joe Gagliano; LJ Development, Inc. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines