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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 />July 7, 2011 <br />Brad Janes <br />Varra Companies, Inc. <br />8120 Gage Street <br />Frederick, CO 80516 <br />RE: Western Sugar Reclamation Land Development Project; DRMS File No. M- 2010 -049; <br />Financial Warranty Clarification <br />Dear Mr. Janes, <br />The Division of Reclamation, Mining and Safety (Division) calculated the financial warranty for <br />the above referenced site and set the amount at $127,210.00. The financial warranty amount was <br />established by calculating the cost to reclaim Tract A. Per our discussion this afternoon, Varra <br />Companies, Inc. has informed the Division that extraction activities will commence in Tract B <br />and Tract A will be used for portable plant facilities and stockpiling of material. The financial <br />warranty amount of $127,210.00 is sufficient to cover reclamation of Tract B and Tract A, <br />provided that Tract A is only utilized for portable plant operations and material stockpiling. <br />Extraction within Tract A or the establishment of permanent structures will require the Operator <br />to post an increased financial warranty. <br />If you have any questions, please call me at (303)866 -3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pieeda <br />Director <br />Office of <br />Denver • Grand junction • Durango Active and Inactive Mines <br />