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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 />January 11, 2011 <br />Robert Congdon <br />Avalanche Creek Marble and Alabaster, LI_C <br />169 Clearwater <br />Carbondale, Colorado 81623 <br />Re: White Banks Mine, Permit No. M - 1999 - 042, Surety Increase Notice, SI - 02. <br />Dear Mr. Congdon, <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, the Division of Reclamation, Mining, and Safety has updated the reclamation cost <br />estimate (copy enclosed). The estimated reclamation liability is now $15,525.00. This is an increase of $3280.00 <br />from the 2003 update of $12,245.00. Therefore, pursuant to Section 34- 32.5- 117(4) of the Colorado Land <br />Reclamation Act, adequate financial warranty must be submitted to DRMS within 60 days of the mailing date <br />of this notice. The final date for submission is March 14, 2011. <br />Based on the September 16, 2010 inspection it was noted very little had changed since the last reclamation <br />bond update in 2003. Staff therefore updated the bond calculation using accepted volumes and tasks. The only <br />exception was changing the demolition task. The volume for miscellaneous debris disposal was reduced by 50% <br />to reflect work done by you on site cleanup. Inflation was relatively small for all tasks except revegetation. <br />Unfortunately seed cost have increased over the 8 years since the last update. That increase more than any <br />other contributed to the increase required. <br />If you need additional information, please contact me at the Division of Reclamation, Mining, and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117. <br />Sincerely, <br />G. Russel Means <br />Environmental Protection Specialist <br />CC: Olivia Garcia, Aspen - Sopris Ranger District <br />STATE G: COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />