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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 />August 15, 2011 <br />Mr. Paul Martin <br />Sakura Engineering, Inc. <br />125 W. Main St. <br />Farmington, NM 87401 <br />RE: Incas Mine; Permit No. M- 1986 -076 <br />Dear Mr. Martin, <br />Sincerely, <br />Kate Pickford <br />Environmental Protection Specialist <br />CERTIFIED MAIL 7005 3110 0002 7206 7375 return receipt <br />cc: Jim Bender, DCMG <br />Office of <br />Mined Land Reclamation <br />STATE OF COLOIILO <br />[Type the document title] <br />RECEIVOID <br />AUG 18 2011 <br />Division of Reclamation, <br />Mining and Safety <br />COLORADO <br />DIVISION 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 />Division records identify you as the new contact for the DGMC, Incas Mine, file M- 1986 -076. The annual fee and <br />report form submitted by the previous contact, Jim Bender has the name of the permittee, DGMC, crossed out. Please <br />be aware that in order for the permit holder to be changed, a Succession of Operator application must be submitted to <br />the Division for review. Therefore, if you are to assume possession of the permit as an individual, and not as a <br />representative of DGMC, a Succession of Operator application must be submitted to the Division. <br />Additionally, the Colorado Secretary of State's Office indicates that DGMC currently is not registered as able to do <br />business in the State of Colorado. Therefore, the company currently in possession of this permit needs to be registered <br />with the Colorado Secretary of State's office in order to avoid enforcement action by the Mined Land Reclamation <br />Board. <br />C.R.S. 34 -32 -118 (1)(d) and Rule 4.19(1)(d) of the Hard Rock /Metal Mining Rules and Regulations state that a <br />financial warranty shall be subject to forfeiture whenever the Board determines the financial warrantor no longer has <br />the financial ability to carry out his obligations under the article. Given the above information, the Division requests <br />that you demonstrate the following; <br />• Provide documentation demonstrating the current operator, DGMC, exists as an entity to do business in the State of <br />Colorado and has the financial ability to perform reclamation on site. <br />Please submit the requested information to the Division by September 20, 2011. Failure to provide this documentation <br />by the due date will be reason for the Division to schedule this matter before the Mined Land Reclamation Board for <br />possible forfeiture of the reclamation bonds. If you have any questions, please do not hesitate to call me at (970) 259- <br />5861. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />