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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Nfaturta Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: 1303; 866.3567 <br />FAX: (303) 832-8106 <br />August 7, 2008 <br />Mr. Michael S. Savage <br />Savage and Savage Environmental <br />4610 Haystack Drive <br />Windsor, CO 80550 <br />Re: Carbon Junction Mine, DMG Permit C-92-080 <br />Permit Renewal RN-03 <br />Updated reclamation cost estimate <br />Dear Mr. Savage: <br />COLORADO <br />I V I S 1 O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />601 Ritter, Jr, <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronatd W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has completed an updated reclamation cost estimate for RN-03 (please see attached copy). <br />The total estimate is $405,834, comprised of the following two categories: <br />a) $189,450 for reclamation tasks not yet completed and those tasks that are completed but have <br />not yet undergone bond release, and <br />b) $216,384 for tasks that have been completed and bond released, but where dollar values are <br />subject to the 60%i85% phased bond release limits of Rule 3.03(2). <br />The total of $405,834 is $25,307 more than the $380,527 of liability remaining after the recent bond <br />release SL-3. Of the $25,307 difference, $22,674 results from the Division's decision form for SL-03 <br />not reflecting a previously documented error for this amount. (This $22,674 error was documented in <br />my emails to Savage and Savage, on April 4, 2008 and to Sandra Pautsky, on April 23, 2008.) <br />Please note that during the review of RN-03 it was found that it may be appropriate to eliminate Task <br />038 from the reclamation plan (see my letter to you, dated July 23, 2008). Task 038 is the redistribution <br />of topsoil in stockpiles 4 and 7. Elimination of this task would reduce direct costs in the cost estimate <br />by $74,765. Task 038 may be eliminated from the reclamation plan by submitting a Technical Revision <br />to the permit application and requesting a bond reduction. The task cannot be eliminated in R.N-03 <br />because the operator's public notice for RN-03 did not include a reference to this change in the <br />reclamation plan. <br />l'he Division is prepared to approve permit renewal RN-03. <br />Sincerely. <br /> <br />"Tom Kaldenbach <br />Environmental Protection Specialist <br />cc.- Daniel 1. Hernandez. C DRMS <br />..... _....... <br />_,_---...------------__._? <br />of ice )f <br />Mined Land Reclair:ation Denver - C:,rand Junction - Durango <br />Office of <br />Active and Inactive Mints