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DIVISION OF RECLAMATION, MINING AND SAFETY <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 />July 11, 2008 v <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mr. Albert R. Frei Jr. <br />Harris D. Sherman <br />Albert Frei and Sons, Inc. Executive Director <br />P.O. BOX: 700 Ronald W. Cattany <br />Henderson, CO 80640 Division Director <br />Natural Resource Trustee <br />l/ v <br />Re: File No. M-2007-087, Priola Pit, 112c ecision Letter - Conditions, Financial and Performance Warranty <br />Request - Construction Material Operation <br />Dear Mr. Frei: <br />On July 9, 2008, the Division of Reclamation, Mining and Safety approved your 112c mining permit application. The <br />conditions to the approval are noted below: <br />Stipulation No. Description <br />No mining will occur within 200 feet of monitoring wells owned by the City of <br />Thornton until the Operator provides written evidence that an agreement has been <br />reached between the two parties that permission has been granted for removal of the <br />wells, or the engineering evaluation is submitted and approved. Unless removed in <br />their entirety, the wells must be abandonment in accordance with the Rules and <br />Regulations of the Office of the State Engineer. <br />2 Operator will monitor ground water levels upgradient and downgradient of the <br />backfiIled area for a period of two years following completion of reclamation to <br />ensure that ground water is not mounding to levels that could adversely impact <br />surrounding structures. If the City of Thornton does not allow use of their wells for <br />the needed monitoring, the Operator must install piezometers to conduct the <br />monitoring prior to initiating mining activities. <br />The Division has approved a phased bond for this operation, and the amount of financial warranty set by the Division for <br />the first phase of this operation is $563,000.00. You must submit a financial warranty in this amount and a performance <br />warranty in order for us to issue a permit. In the event you have requested a financial warranty form, we have enclosed it <br />in this letter. If you have not, please select a type of financial warranty from Rule 4.3. Then contact us so that we can <br />provide you with the appropriate warranty form. We have enclosed a performance warranty form with this letter for your <br />use. <br />STATE OF COLORADO <br />Office of <br />Mined Land Reclamation Denver Grand Junction Durango Office of <br />Active and Inactive Mines