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Varra Companies, Inc. <br />Office of Special Projects <br />8120 Gage Street Frederick Colorado 80516 Telephone (970) 353-8310 Fax(970)353-4047 <br />Item #3 Bond Estimate: <br />3) Based on your response to the items above, the Division will conduct a <br />financial warranty estimate for the current level of disturbance and adjust the <br />required financial warranty accordingly. <br />Acknowledged. It is further understood that warranty considerations may <br />prove pending in part or in whole at the Discretion of the Office, <br />respective of the forthcoming Amendment application, per Item #1, above. <br />Item #4 Hydrologic Balance: <br />4) The Division approves the locations of the proposed piezometers. Please <br />specifically state that groundwater elevations will be monitored on a <br />quarterly basis until the permit has been released by the Division and commit <br />to supplying the Division with the results of the measurements in the annual <br />reclamation report. Please indicate when monitoring will begin. <br />As requested by the Office, Varra Companies, Inc. affirms that the referenced <br />groundwater elevations will be monitored on a quarterly basis until the permit <br />has been released by the Division and commit to supplying the Division with the <br />results of the measurements in the annual reclamation report. <br />Monitoring will commence within 30 days of the completion of piezometers. We <br />anticipate both can be accomplished no later than the scheduled 21 January 2010 <br />Amendment submittal. As with all of our 21 January 2010 commitments, Varra <br />Companies, Inc. will apply due diligence to those ends, and will not seek an <br />extension of those commitments from the Office without good cause. <br />Attachments: <br />1. Proof of Placement of this material with the Weld <br />County Clerk to the Board. <br />Varra Companies, Inc. correspondence to the Colorado Office of Mined Land Reclamation (Office) in reply to 3 <br />Office correspondence of 3 November 2010 - Dakolios Pit - M-1984-036.