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J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />December 15, 2005 <br /> <br />DEC 19 2005 <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />J. J. Dudash <br />Division of Minerals and Geology odMl~l°"°"`G°°~°°y <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Bowie Resources, LLC, Bowie No 1 Mine <br />- _ - Bond Release Clarification _ <br />Permit No. C-81-038 <br />Dear Mr. Dudash: <br />Bowie Resources, LLC, is looking into initiating reclamation work at the unit train <br />loadout. The contemplated work will be removal of structures. Structures included are <br />the truck dump, silos, loadout, shop, conveyors, substations and ancillary buildings. <br />BRL needs to leave the railroad track and rail bridge in place so it can be used by the <br />Union Pacific to store trains and maintenance equipment thus improving the efficiency <br />of train movement in and out of the North Fork. <br />The total structural demolition bond estimate for the unit train loadout is 2.7 million <br />dollars. BRL will leave the railroad track in place along with a few culverts which would <br />bring the total reclamation work performed down to 2.0 to 2.4 million dollars. <br />One issue that has surfaced during past bond release processes is whether structural <br />demolition bond can be released before backfill and grading work is performed. Very <br />little backfill and grading work is possible at the unit train loadout since the railroad track <br />will be left in place. BRL hereby requests clarification on this point. Will the DMG <br />release bond amounts associated with structural demolition before backfill and grading <br />work is complete? Are there any restrictions on the release amount other than the <br />Phase One 60% limitation? <br />Please call if you have any questions. <br />Sincerely, <br />~f~~ <br />J. E. Stover, P. E. <br />Consulting Engineer <br />Cc: Basil Bear <br />