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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8706 <br />November 6, 2003 <br />Steve Baker <br />3B Enterprises, LLC <br />1200 E. 1st St. <br />P.O. Box 1665 <br />Craig, CO 81626 <br />Re: Deakins Pit, Conversion Approval, Permit No. M-2001-060, Revision No. CN-1 <br />Dear Mr. Baker: <br />COLORADO <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />0.ECLANATION•NI NING <br />EAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Greg E Watcher <br />Executive Director <br />Ronald W. Canany <br />Division Director <br />Natural Resource Trustee <br />On November 6, 2003 the Division of Minerals and Geology approved the Conversion application submitted to the <br />Division on September 1Q 2003, addressing the following: <br />Convert the current IIOc permit for 9.99 acres to a 112c permit for 23.59 acres. <br />The terms of the Conversion No. 1 approved by the Division are hereby incorporated into Permit No. M-2001-060. <br />The conditions of the Division approval are noted below. Please note that the original permit approval included <br />one condition, therefore the Conversion approval conditions begin with Stipulation No. 2. Please also note that al] <br />other provisions of Permit No. M-2001-060 remain in full force and effect. <br />Stipulation No. Description <br />2. A reportable spill is a spill of any toxic or hazardous substance (including spills of <br />petroleum products) within the mined land permit area reportable to any Division of the Colorado Department of <br />Public Health and the Environment, the Narional Response Center, the Colorado Emergency Planning <br />Commission, any local. Emergency Planning Commission, local Emergency Planning Cornmittee, or the State Oil <br />Inspector. The Mine Operator shall notify the Division of Minerals and Geology (DMG) of a reportable spill <br />within the mined land permit area using the same timeframe required by the pemmit, license, notice, statute, rule or <br />regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be <br />FAXed to: Minerals Program Supervisor, Division of Minerals and Geology, FAX (303) 832-8106. The FAX <br />shall include acall-back number of a responsible company official for DMG staff to use a contact. <br />3. The operator shall not mine any of the Phase 3 area, as defined on the revised Exhibit "C" - <br />Mining Plan Map recevied by the Division on November 3, 2003 until the wetland issues are resolved with the <br />Corps of Engineers and the Division received a letter from the Corps stating what the resolution is. At that time of <br />the approval to begin mining on the Phase 3 area the Division will re-assess the financial warranty. <br />4. The operator shall not expose more than five acres of water surface on the pemmt area until the <br />Division is provided with correspondence from the Office of the State Engineer approving the exposure of <br />additional water surface. <br />Office of Office of Colorado <br />~~4EtCN Approval M-2001-06011-06-03.doc Actlve and Inactive Mines Geological Survey <br />