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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 />December 21, 2012 <br />Mr. Rob Mangone <br />Rocky Mountain Materials & Asphalt, Inc. <br />1910 Rand Ave <br />Colorado Springs, CO 80906 <br />Re: Penrose Ranch's, Permit No. M- 1992 -016; <br />Financial Warranty Increase, Revision No. SI -01 <br />Dear Mr. Mangone: <br />On December 21, 2012 the Division of Reclamation, Mining and Safety (Division) increased the current <br />Financial Warranty for this permit to $281,283.09, in accordance with Rule 4.2.1 of the Rules and <br />Regulations. This is an increase of $80,741.09. A cost summary worksheet is attached. The full unit cost <br />update was attached to the inspection report mail to Tom Smith on December 14, 2012. <br />The Division ordered amendment of the current Financial Warranty, or submittal of a new Financial <br />Warranty reflecting the increase, is due within 60 days from the date of this letter (Due by February 19, <br />2013). If you wish to submit a different type of Financial Warranty, please contact Division Bonding <br />Specialist, Barbara Coria so that she may send you the applicable form. Bonding forms are also available on <br />the Division's website at: http: // mining. state .co.us /Mineral %20Forms.htm <br />If you have any questions, please contact me. <br />Sincerely, <br />Mined Land Reclamation <br />Tim y A. Cazier, P.E. <br />Environmental Protection Specialist <br />Enclosure <br />cc: Tom Kaldenbach, DRMS <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />