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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) 832-8106 <br />March 31, 2005 <br />Ron Thompson <br />Peak Project Management <br />34115 Co. Rd. 20.8 <br />Trinidad, Colorado 81082 <br />Re: New Elk Mine (Permit No. C-1981-012) <br />Proposed Bond Adjustment and Notice of Informal Conference (SI-Ol) <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />0.ECLAM ATION•MINING <br />SAFETY•SC IENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald w. Cattany <br />Division Director <br />Natural Resource Trustee <br />In accordance with Rule 3.02.2(4), the Colorado Division of Minerals and Geology (Division) has reviewed <br />the amount of reclamation bond required for the New Elk Mine. As a result of our review, we have <br />estimated the cost to reclaim the mine site, in the event of forfeiture, to be $3,579,533.00. This amount <br />exceeds the current bond held of $2,144,649.00. By this letter, the Division is providing notice of the <br />proposed bond adjustment and an opportunity for an informal conference concerning the proposed <br />adjustment pursuant to Rule 3.02.2(4)(a). Enclosed is the Division's cost estimate for your review. An <br />informal conference may be used to set specific actions and schedules necessary to resolve the discrepancy <br />between the bond amount currently held, and the amount required to ensure reclamation. <br />Please let us know within 14 days of the date of this letter if you would like to have an informal conference <br />concerning the bond adjustment. If a request for an informal conference is not received by April 14, 2005, <br />the Division will proceed with the proposed decision and publication procedures specified in Rule 3.02.2(4). <br />Thank you for your cooperation. If you have questions or need additional information, please contact me. <br />Sincerel , <br />~~~" ~" <br />Ke t A. Gorham <br />Environmental Protection Specialist II <br />Enclosure <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />