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Physical Equilibrium <br />Page 2 <br />4. Bonding <br />In accordance with the Stipulations for approval of TR -14, bonding for one time <br />replacement of the Terry Tunnel and American Tunnel bulkheads ($697,000) will <br />remain in place for 5 years after establishment of physical equilibrium. SGC may <br />later request earlier release if conditions warrant. <br />After completion of these tasks and /or waiting periods, TR -14 will be fully implemented. <br />You should be aware that SGC intends to discuss early final closure of the American <br />Tunnel with WQCD and if they are receptive, SGC will present its plan to DMG as well. <br />In order to expedite final Sunnyside Mine reclamation, SGC is interested in starting <br />reclamation of the Terry Tunnel permit area since physical equilibrium has been <br />established. In SGC's opinion this site is no longer needed and the Water Quality Control <br />Division (WQCD) has encouraged SGC to expedite final portal closure to eliminate the <br />near surface flows to surface. <br />The reclamation plan anticipates a tunnel bulkhead, portal backfilling, site grading to <br />eliminate the settling ponds and revegetation. While SGC has already placed a tunnel <br />bulkhead, it is anticipated that another bulkhead may be needed to eliminate near surface <br />flows to surface and to satisfy WQCD concerns related to long -term flows through the <br />backfilled portal. SGC believes the placement of a portal seal and completion of site <br />reclamation at the Terry Tunnel can proceed without additional permit approvals. <br />Please notify me if DMG agrees with SGC's summary of tasks for completion of TR -14 <br />and whether Terry Tunnel site reclamation can proceed. <br />cc: Wally Erickson, DMG Durango Field Office <br />Sincerely, <br />Larry Perino <br />Reclamation Manager <br />