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D IVISION 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 />20 July 2011 <br />Mr. Randy Whicker <br />Health Physicist / RSO <br />Cotter Corporation <br />P.O. Box 1750 <br />Canon City, CO 81215 <br />Re: Schwartzwalder Mine, Permit No. M- 1977 -300, Notice of Deficiency for Surety <br />Reduction Request SR -03 <br />Dear Mr. Whicker: <br />The Division of Reclamation, Mining, & Safety (Division) has considered Cotter Corporation's <br />(Cotter) request for Surety Reduction SR -03 in the amount of $10,455 for reclamation that was <br />performed as part of activities under Technical Revision TR -16. <br />In accordance with Hard Rock Rule 4.17.2 (4), the Division is required to advise the Permittee of <br />any deficiencies in the Surety Reduction request within 60 calendar days after the date of the <br />inspection, which in this case was 26 May 2011. <br />The Division is unable to grant the request at this time because Cotter has not yet provided the <br />drill hole abandonment report. After the Division receives the drill hole abandonment report, <br />then we will reconsider the request. <br />You may call me with questions at 303 - 866 -3567 x8108. <br />Sincerely, <br />V6avid Bird <br />Division of Reclamation, Mining, & Safety <br />cc: J hn Hamrick — Cotter (via email) <br />ony Waldron — DRMS (via email) <br />Mined Land Reclamation <br />STATE OF COLORADO <br />C0L0RADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAF ETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />