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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 9, 2011 <br />Mr. Christopher L. Varra <br />Varra Companies Inc. <br />8120 Gage St. <br />Frederick, CO 80516 <br />Re: Heintzelman Project (Pit 116), Permit No. M- 2009 -018, Amendment Approval, Revision No. AM -1 <br />Dear Mr. Varra: <br />On November 9, 2011 the Division of Reclamation, Mining and Safety approved the Amendment application submitted <br />to the Division on August 12, 2011, addressing the following: <br />Increase affected area by 1.58 acres to construct a conveyor system between the Heintzelman Project (Pit 116) <br />and the Kurtz Resource Recovery and Land Development Project (M -1999 -006). <br />The terms of the Amendment No. 1 approved by the Division are hereby incorporated into Permit No. M- 2009 -018. The <br />conditions to the approval are noted below: <br />Stipulation No. Description <br />3. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />CC: Tom Kaldenbach, DRMS <br />Barbara Coria, DRMS <br />Brad Janes, Varra Companies (via email) <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 />Prior to constructing the conveyor system, Varra Companies Inc. shall either a) submit and <br />obtain approval of an engineering evaluation which demonstrates that structures within 200 feet <br />of the proposed conveyor system will not be damaged by the construction of the conveyor <br />system, or b) submit notarized agreements between the operator and the person(s) having an <br />interest in a structure, that the operator is to provide compensation for any damage to the <br />structure. <br />The estimated liability amount of $239,266.00 exceeds the $207,943.00 performance bond currently held. If you have <br />not already done so, please submit additional bond in the amount of $31,323.00. The revision will not be final until the <br />bond is approved by the Division. <br />If you have any questions, please contact me at (303)866 -3567 x8116. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />