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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 />February 13, 2013 <br />Mr. Christopher L. Varra <br />Varra Companies, Inc. <br />8120 Gage Street <br />Frederick, CO 80516 <br />Re: Western Sugar Reclamation Land Development Project, Permit No. M- 2010 -049, <br />Technical Revision No. 2 (TR -02) — Alternative Flood Analysis and Flood Control Plan, <br />Revised Financial Warranty Calculation <br />Dear Mr. Varra: <br />On January 9, 2013 the Division of Reclamation, Mining and Safety approved the Technical <br />Revision application submitted to the Division on November 9, 2012, addressing the following: <br />• Alternative flood analysis and flood control plan <br />The Division recalculated the financial warranty required based on Varra Companies response <br />letter dated February 8, 2013 <br />The revised estimated total liability amount of $292,210.00 exceeds the $127,210.00 performance <br />bond currently held. If you have not already done so, please submit additional bond in the <br />amount of $165,000.00. The revision will not be final and the Operator is not allowed to operate <br />in Tract C, south of the established floodway boundary, but not within 100 feet of the proposed <br />riprap areas within Tract C or in any portion of Tract D until the bond is approved by the <br />Division. <br />If you have any questions, please contact me at (303) 866 -3567 Ext. 8124. <br />Mined Land Reclamation <br />Peter S. H s <br />Environmental Protection Specialist <br />Enclosure: TR -02 Revised Financial Warranty Estimate <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 />— &— <br />SAFETY <br />John Hickenlooper <br />Govemor <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 />