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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 />January 25, 2013 <br />Mr. Joe Kraig <br />Pioneer Sand Company Inc <br />P.O. Box 7650 <br />Colorado Springs, CO 80933 -7650 <br />Re: Ingleside Quarry, Permit No. M- 1980 - 037 -HR, Financial Warranty Increase, Revision No. SI- <br />1 <br />Dear Mr. Kraig: <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, the Colorado Division of Reclamation, Mining and Safety (Division) has <br />updated the reclamation cost estimate (copy enclosed) for the above referenced operation. Therefore, <br />pursuant to Section 34- 32.5- 117(4) of the Colorado Land Reclamation Act, adequate financial <br />warranty must be submitted to the Division within 60 days of the mailing of this report. The increase <br />needs to be accepted prior to March 26, 2013. Please review the enclosed figures as soon as possible and <br />contact our office if any calculation errors are noted. <br />The Division's calculations estimate the cost to reclaim the site to be $80,644.00. This is an increase of <br />$20,444.00 over the $60,200.00 currently held by the Division. The estimate is based on conditions <br />observed during the latest inspection. <br />If you have any questions, please contact me (303) 866 -3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />CERTIFIED MAIL NO. 7010 1060 0001 0936 6606 <br />Return Receipt Requested <br />Enclosure <br />CC: Tom Kaldenbach, DRMS <br />Barbara Coria, DRMS <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 Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />