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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 />TO: Jim Stark <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />INTEROFFICE MEMORANDUM Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />FROM: Mike Boulay <br />DATE: March 24, 2009 <br />SUBJECT: McCIane Canyon Mine, Permit No. C-1980-004, Midterm Cost Estimate Review <br />I am requesting your assistance in reviewing the bond liability for the McClane Canyon Mine for the <br />Midterm Review No. 6. From my initial review it appears that we last did an overall reclamation <br />estimate review in 2006 with Permit Renewal No. 6. Since RN-6 there have been three increases to <br />the bond amount as follows: MR-41 +$3,284, MR-44 +$6,740, and recently TR-16 +$29,997.0. <br />The current bond held is $319,280.00 and the revised amount with TR-16 is $349,277.00. <br />Therefore, McClane Canyon Mine, LLC (MCM) is under-bonded at this time. To my knowledge, <br />MCM has not submitted additional bond following the approval of TR-16. <br />If possible, I would like to have your review completed by April 1, 2009. Please let me know if you <br />require any additional information or documentation to complete your review. Thank you for your <br />assistance. <br />C: Sandy Brown <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines