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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 COLORADO <br />Denver, Colorado 80203 D i v i s t ON OF <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> SAFETY <br /> John W. Hickenlooper <br /> Governor <br />May 16, 2011 <br />Ron Peterson <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Carder, Inc. <br />P.O. Box 732 <br />Lamar, CO 81052 <br />Re: White Sand & Gravel Pit #1, File No. M-2010-062, Approval of'?Iransfer of Approved Mineral <br />Application and Succession of Permit Applicant, Revision No. SO-1 <br />Dear Mr. Peterson: <br />On May 16, 2011, the Division of Reclamation, Mining and Safety approved the succession of operators from White <br />Sand & Gravel, LLC to Carder, Inc. for this operation. Carder, Inc. is now the approved application holder of the White <br />Sand & Gravel Pit #1, and as such, will be responsible for all provisions in Permit No. M-2010-062, as well as those <br />specified in the Rules and Regulations when the Division receives and approves the performance and financial <br />warranties. White Sand & Gravel, LLC is relieved of all responsibilities concerning this operation. <br />As a reminder: <br />The amount of financial warranty set by the Division for this operation is $17,646.00. You must submit a financial <br />warranty in this amount and a performance warranty in order for us to issue a permit. In the event you have requested a <br />financial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty from <br />Rule 4.3. Then contact us so that we can provide you with the appropriate warranty form or visit our website at <br />www.mining.state.co.us . We have enclosed a performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, contact me. <br />Sincerely, <br />?Jr d L. Ebert 1 <br />Environmental Protection Specialist <br />cc: Tim White, White Sand & Gravel, LLC <br />office of office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines