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STATEMENT OF FACTUAL AND LEGAL ISSUES PRESENTED BY THE APPEAL <br /> UNDER RULE 4.18 <br /> 1. Are the Financial Warranties applicable to the reclamation described in <br /> Climax's Request for Surety Reduction deemed released as a matter of law? After Climax <br /> submitted its Request for Surety Reduction by letter dated September 12, 2000,DMG conducted <br /> inspections of the areas where reclamation work had been conducted in accordance with Rule <br /> 4.16.1(5). The inspections were conducted on September 26, 2000 and October 24,2000. Under <br /> Rule 4.16.5, DMG was required to advise Climax of any deficiencies in its application for surety <br /> reduction within 60 days of the date of the inspection, or by November 27, 2000 for the areas <br /> covered by the September 26 inspection and by December 23, 2000 for the areas covered by the <br /> October 24 inspection. Climax received no notice of deficiencies identified during the inspection <br /> until DMG provided an inspection report regarding the September 26 inspection that was <br /> received by Climax on January 31, 2001. Climax received an inspection report regarding the <br /> October 24, 2000 inspection on February 26, 2001,the same date that it received DMG's letter <br /> of February 22, 2001 containing DMG's decision. Both of the inspection reports and DMG's <br /> February 22, 2001 letter were provided to Climax after the expiration of both of the 60-day <br /> periods for DMG to notify Climax of any deficiencies observed during the inspections. <br /> Consequently, Climax's Financial Warranties for the reclamation described in its request are <br /> deemed to be released as a matter of law under Rule 4.16.1(6). Therefore,the Financial <br /> Warranties for the Climax Mine should be reduced by the full amount set forth in the request. <br /> 2. Did DMG properly limit the partial release of reclamation responsibility <br /> sought by Climax for the Storke Complex, E-Dump,No. 3 Dam, Mayflower Tailings Area, the <br /> Eagle Valley Borrow Areas, and Buildings Demolition? <br />