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L.G. EVERIST, INC. <br />ROCK .SOLID .SINCE 1876 <br />June 23, 2015 <br />Mr. Eric Scott <br />Division of Reclamation, Mining & Safety <br />1313 Sherman St., #215 <br />Denver, CO 80203 <br />7321 E. 88TH AvENUE, SUITE 200 <br />HENDERSON, COLORADO 80640 <br />PHONE 303-287-9606 • FAx 303-289-1348 <br />JUN 2 6 2015 <br />DIVISION OF RECLAMATION <br />MINING AND SAFETY <br />Sent via Certified Mail 7006 2150 0003 6779 723 <br />RE: Request for Surety Reduction for Star Water Resource, Permit #-M-1977-522' <br />Permittee/Operator: L.G. Everist, Incorporated <br />Dear Mr. Scott: <br />L.G. Everist, Incorporated (aka L.G. Everist, Inc., Permittee/Operator) respectfully requests a Surety <br />Reduction for the Star Water Resource, M-1977-522. We have attached the Division's form, Request <br />for Full or Partial Release of Permit Area/Surety Reduction. Please note that we only requesting a <br />financial warranty (bond) reduction at this time, and are not requesting any acreage to be released. <br />L.G. Everist just received the Inspection Report and Acreage Reduction Approval from the DRMS, <br />approving the release of the 9.36 acres of the Varra property, which was reclaimed for industrial use. <br />Thank you. <br />This financial warranty (bond) reduction request pertains to the remaining 81.27 acres of the permit <br />area, which is owned and operated by L.G. Everist, Inc. L.G. Everist completed mining last year and <br />has reclaimed the Star Water Resource as per its DRMS permit in all aspects except for achieving the <br />revegetation to a level as described in the Division's Rule 3.1.10. <br />All the earth work has been completed and a slurry wall was installed around the West Lake area with <br />continuous quality assurance testing by Deere & Ault. The sloping and grading was designed and <br />tested by Deere & Ault and has been completed as per the approved reclamation plan. The slurry wall <br />liner went through its 90 -day leak test, and was approved to the (most strict) Design Standard by the <br />Office of the State Engineer on December 16, 2014. The State Engineer's December approval letter is <br />attached. Also attached is a revised approval letter from the State Engineer, dated March 6, 2015, in <br />which the only change was revised WDIDs by the SEO. <br />L.G. Everist has seeded all the areas to be revegetated at least once, but unfortunately at this time <br />there are more weeds in some areas than the sustainable grass species listed in our reclamation plan <br />(as noted in the recent Inspection Report). L.G. Everist will continue to work on the revegetation, which <br />will include weed control (spraying, mowing, etc.), and also completely reseeding some areas once the <br />weeds are controlled/removed. <br />Therefore, at this time, L.G. Everist requests the financial warranty reduction to include all reclamation <br />costs except for Revegetation Costs, Weed Control Costs, Mobilization Costs, and DRMS Indirect <br />Costs and Fees. The estimated, remaining reclamation costs are detailed in the following Estimated <br />Reclamation Costs table. <br />STAR-DRMS-F inWa rRed uctio n Req uest-Itr-J une2015.docx <br />✓ AF & Report <br />✓ VIOLATION: MV -1994-020 <br />