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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 C O L O R A D O <br />Denver, Colorado 80203 D IV IS I ON OF <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> - <br /> SAFETY <br />February 25, 2011 John W. Hickenlooper <br /> Governor <br />Mr. Tim Walsh Mike King <br />Gilcrest Reservoir, L.L.C. Executive Director <br />8301 East Prentice Ave, Suite 100 Loretta E. Pineda <br />Greenwood Village, CO 80111 Director <br />Re: S & H Mine, Permit No. M-2000-158, Amendment Approval, Revision No. AM-2 <br />Dear Mr. Walsh: <br />On February 25, 2011 the Division of Reclamation, Mining and Safety approved the Amendment application submitted <br />to the Division on March 1, 2010, addressing the following: <br />Addition of 269.23 acres with an updated mining and reclamation plan. <br />The terms of the Amendment No. 2 approved by the Division are hereby incorporated into Permit No. M-2000-158. All <br />other conditions and requirements of Permit No. M-2000-158 remain in full force and effect. <br />This amendment was approved with the following stipulations: <br />1.) The Operator shall not affected land within 200 feet of the following structures listed below as depicted on the <br />Exhibit C, Mining Plan Map received by the Division of Reclamation, Mining and Safety (DRMS) on February <br />3, 2011: <br />a. Structure #2; Oil/Gas Wells and Facilities owned by Noble Energy <br />b. Structure #7; Utility Line owned by Xcel Energy <br />c.. Structure #8; Buildings owned by Ptasnik Land Company <br />Prior to affecting land within 200 feet of these structures, the Operator shall submit and obtain approval from the <br />DRMS of notarized structure damage reimbursement agreements as required by Rule 6.4.19. Or, the Operator <br />must submit and obtain DRMS approval of a Technical Revision with a Geotechnical Stability Exhibit <br />demonstrating the mining/reclamation operation will not damage these structures. <br />2.) No work related to the installation of the slurry walls or the preparation and construction of the embankments can <br />commence until the Operator has submitted and received approval of a Technical Revision to update the <br />financial warranty for the proposed slurry walls and embankment construction cost. Also, the updated financial <br />warranty for the said activities must be submitted and approved by the Division after approval of the Technical <br />Revision prior to the start of work. Also, the Operator must provide evidence the Office of the State Engineer <br />(SEO) has approved the dam embankments. <br />The estimated liability amount of $668,900.00 is less than the $800,000.00 performance bond currently held. If you have <br />not already done so, please submit a decrease rider for the current financial warranty or a new financial warranty in the <br />required surety amount of $668,900.00. The revision will not be final until the bond is approved by the Division. <br />If you have any questions, please contact me. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines