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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 />November 8, 2011 <br />Garrett Varra <br />Varra Companies <br />8120 Gage Street <br />Frederick, CO 80516 <br />RE: Kurtz Resource Recovery and Land Development Project; DRMS File No. M -1999- <br />006; Financial Warranty Increase; Revision No. SI -02 <br />Dear Mr. Varra, <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the <br />requirements of the approved reclamation plan, the Colorado Division of Reclamation, Mining <br />and Safety (Division) has updated the reclamation cost estimate (copy enclosed). Therefore, <br />pursuant to Section 34- 32.5- 117(4) of the Colorado Land Reclamation Act, adequate <br />financial warranty must be submitted to the Division within 60 days of the mailing of this <br />report. The increase needs to be accepted prior to January 9, 2012. Please review the enclosed <br />figures as soon as possible and contact our office if any calculation errors are noted. <br />The Division's calculations estimate the cost to reclaim the site to be $333,800.00. This is an <br />increase of $19,700.00 over the $314,100.00 currently held by the Division. The estimate is <br />based on the approval of Technical Revision — 04, and accounts for the cost of dismantling the <br />conveyor system within the Kurtz site. <br />If you have any questions, please contact me at (303)866 -3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />Enclosure <br />CC: Tom Kaldenbach, DRMS <br />Barbara Coria, DRMS <br />Brad Janes, Varra Companies (via e -mail) <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />