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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 ~ C O L O R A D O <br />Phone: (303) 866-3567 DIVISION o F <br />RECLAMATION <br />FAX; (303) 832-8106 MINING <br /> - &- <br /> SAFETY <br />November 28, 2006 <br /> Bill Owens <br />Oakridge Energy, Inc. covemor <br />Att: Sandra Pautsky Russell George <br />4613 Jacksboro Highway EzeCUtive Dlrecto! <br />Wichita Falls, TX 76302 Ronald W. Catlany <br /> Division Director <br /> NaturaY Resource Trustee <br />Re: Carbon Junction Mine, DMG Permit C-92-080 <br />Phase I Bond Release Application, SL-03 <br />Deaz Ms. Pautsky: <br />A Phase I bond release inspection was held at the Carbon Junction Mine on November 7, <br />2006. A copy of the inspection report is attached. Phase I bond release allows the retttrtt <br />of up to 60% of applicable bond for backfilling, grading, drainage re-establishment, and <br />removal of structures and equipment. Overall the site appeared in good shape, with <br />backfilling, grading, topsoil replacement, and seeding having been completed on much of <br />the site in the summer. During the bond release inspection several drainage or erosional <br />features were found that need repair before the Phase I bond release can be approved. <br />The items needing repair are listed below. <br />Location Drainage or erosional Needed repairs/work <br /> feature discussed during inspection <br /> Severe gullying at one Regrade, shape slope, and place <br />North Pit backfill, north end location armor to protect backfill from <br /> high velocity runoff <br /> Reduce flow velocity in rills by <br />North Pit backfill, middle of Three rills, each a few installing rock at upslope end of <br />pit hundred feet long rills and at selected locations in <br /> each rill <br />North Pit Haul Road Three gullies Install rock water bars <br />Main Haul Road ditch at the Erosional down-cutting in <br />north side of the new 7 h ft. ditch Place rock riprap <br />double culvert <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />