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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 />May 5, 2011 <br />Ross L. Gubka, P.E. <br />Western Fuels-Colorado <br />P.O. Box 628 <br />Nucla, CO 81424 <br />Re: New Horizon Mine - Permit No. C-1981-008 <br />Irrigated Pastureland <br />Dear Mr. Gubka: <br />COLORADO <br />D I V1 S 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 />Director <br />The Division is in the process of evaluating Bond Release application No. 12 (SL-12). As <br />discussed in a phone conversation on April 22, 2011, it does not appear that Western Fuels <br />Colorado (WFC) will be eligible for Phase III bond release on the irrigated pasturelands for the <br />reasons addressed in a separate letter dated May 5, 2011. The majority of the lands covered by <br />the Phase III bond release request have been reclaimed to irrigated pasture. <br />Marcia Talvitie conducted an inspection of the mine on April 26, 2011. At that time WFC had <br />initiated flood irrigation in the irrigated pasture reference area and the Burbridge, Western Fuels- <br />Colorado and Benson-East properties were being irrigated with side rolls. However, none of the <br />fields where WFC has requested Phase III bond release for irrigated pasture were being irrigated. <br />To demonstrate revegetation success, irrigation water on the reclaimed irrigated pasture lands <br />and the reference area must be applied as approved in Technical Revision No. 58 and set forth in <br />Section 2.05.4(2)(e) of the New Horizon permit. <br />Please contact me if you have any questions. <br />Sincerely, <br />Sandra L. Brown <br />Sr. Environmental Protection Specialist <br />C. Marcia Talvitie <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines