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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 />March 10, 2011 <br />Mr. Frank L. Leone <br />Leone Sand and Gravel, LLC <br />2400 E Main Street <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Trinidad, CO 81082 <br />Director <br />Re: Leone Gravel Pit, Permit No. M-2004-026, Financial Warranty Reduction Denial, Revision No. SR-01 <br />Dear Mr. Leone: <br />On February 22, 2011 the Division of Reclamation, Mining and Safety (Division) conducted an inspection of the site for <br />your original full site release request (SL-01). After this inspection, the Division received a financial warranty reduction <br />request for this site. Based on the observations made during the inspection, the Division conducted a financial warranty <br />estimate to finish reclamation at the site. The current financial warranty of $30,200.00 included costs for earth work, <br />topsoiling and revegetation of one 15 acre phase of the original operation. However, approximately 30 acres has been <br />affected at the site. The earth work is complete, but the affected land must be revegetated. The Division conducted a <br />warranty estimate to revegetate the site based on the current approved reclamation plan. The warranty estimate is <br />enclosed with this letter as well as a copy of the cost summary sheet for the current warranty amount. Based on the two <br />estimates, the current financial warranty amount is adequate. Given this, the warranty reduction request is denied. <br />If you have any questions, please contact me. <br />Sincerely, <br />C, Ott-- <br />Jared L. Ebert <br />Environmental Protection Specialist <br />Enclosure: 2004 Warranty Estimate and 2011 Warranty Estimate <br />Cc: Joe Gagliano, L.J. Development, Inc. <br />Tony Waldron, DRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines