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,, iii iiuiiiiiiiiiiii <br />STATE ~F COLC~iv-~~v <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />I il.l Sherman St., Room 215 I~~~ <br />Denver, G>IoraAo 80203 <br />Phune: 131131 866-3 5 h 7 <br />FA%~ (1031 832-B 106 <br />DEPARTMEfVT OF <br />NATURAL <br />November 26, 1997 RESOURCES <br />Rny Romrr <br />Mr. Joe Baldwin cnyrrnor <br />Ryan, Ltd. tomes s. L«n6ead <br />1641 6500 Road E„ecunve Dnrclor <br />Michael R. Long <br />Montrose, CO 81424 Din Stun Dneclor <br />RE: Ellison Mine, Permit No. M-78-342, Reason to Believe a Violation Exists <br />Dear Mr. Baldwin: <br />On June 21, 1997, the Division of Minerals and Geology conditionally approved a Transfer <br />of Permit and Succession of Operator for the Ellison Mine from Ryan, Ltd., the current <br />permittee, to Telluride Mining Co., Inc., the applicant for the Succession of Operator. <br />As part of the Succession of Operator process, Telluride Mining Co. elected to have the <br />Division staff recalculate the required Financial Warranty ("bond") amount prior to final <br />approval of the permit transfer. This is known as "Option A" on the Succession of <br />Operator application form. The bond recalculation was completed by Division staff on <br />July 25, 1997, resulting in an increase in required bond coverage from the existing bond <br />amount of $5,000.00 currently being held by the Division, to a new required bond amount <br />of $10,750.00. The Division's bond recalculation was sent to Ryan, Ltd. on July 25, 1997 <br />as an attachment to the Division's July 17, 1997 inspection report. The inspection report <br />also established a 60 day due date of September 25, 1997 for submittal of the increased <br />bond amount. <br />In addition, both the current permittee and successor applicant were notified by the <br />Division of the increased bond submittal requirement in correspondence dated July 29, <br />1997. <br />On September 24, 1997, the Division received a request from Ms. Sue Carter of Telluride <br />Mining Co. fora 90 day extension to the September 25, 1997 bond submittal due date. <br />On October 6, 1997, the Division sent both Ryan, Ltd. and Telluride Mining Co., Inc. a <br />certified letter granting a single 60 day extension to November 25, 1997 to comply with <br />the increased bond submittal requirement. In that letter, the Division explained that if <br />Telluride Mining Co. did not submit the increased bond amount by the November 25, <br />1997 deadline, then Ryan, Ltd. would be responsible for providing the increase bond <br />amount by the same deadline.. As of this date however, the increased bond amount has <br />not been received by the Division. <br />