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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 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />September 8, 2008 <br />James A. Kiger <br />Environmental Manager <br />Oxbow Mining, LLC. <br />P.O. Box 535 <br />Somerset, CO 81434 <br />RE: Blue Ribbon Mine, Permit No. C-81-047, Minrec, Inc. <br />SL-2, Phase II and III Bond Release, Bond Release Inspection Report <br />Dear Mr. Kiger: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Attached is one copy of the Division's inspection report for the August 27, 2008 Phase II and III <br />Bond Release inspection at the Blue Ribbon Mine. Please note that a summary of the results of <br />the bond release inspection can be found on pages one and two of the comment section of the <br />report. <br />Because additional reclamation work needs to be done, notably backfilling and grading and <br />establishing an appropriate vegetative cover for sediment ponds 4 and 5, the Phase II and III final <br />bond release can not be granted at this time. Once the additional reclamation work has been <br />accomplished, a second bond release inspection will be conducted to verify the results. You will <br />be notified of the date and time of this second inspection, should you want to attend. <br />If you have any questions, please call me. <br />Sincerely, <br />Ooseph J. Wash <br />Environmental Protection Specialist <br />Attachment <br />c:\word\bl ueribbon\sl2oxbowinsp let I <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines