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L.G. EVERIST, INC. <br />May 4, 2009 <br />Mr. Eric Scott <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Delivered via Hand Delivery <br />CORPORATE OFFICE <br />300 S. PHILLIPS AVE. • SUITE 200 <br />P.O. BOX 5829 <br />SIOUX FALLS, SD 57117-5829 <br />PHONE 605-334-5000 <br />FAX 605-334-3656 <br />MOUNTAIN DIVISION <br />7321 E. 88TH AVENUE • SUITE 200 <br />HENDERSON, COLORADO 80640 <br />303-287-9606 <br />FAX 303-289-1348 <br />FiECEA EC <br />MAY 0 4 2009 <br />Division o1 KdGatrlatlor, <br />Mining and Safety <br />RE: Request for Partial Release of Performance and Financial Warranties for Mining <br />Operations for Fort Lupton Sand & Gravel, M-1999-120 - Golden Phase only <br />Dear Eric, <br />L.G. Everist, Inc. requests a partial release of the financial and performance warranties of the <br />Fort Lupton Sand and Gravel mine, DRMS Permit M-1999-120. We are just requesting release <br />of the area known as the Golden Phase. The Golden Phase area is legally described as the <br />SW 1/4 of the NE'/4 of Section 30, Township 2 North, Range 66 West, in the 6th P.M., Weld <br />County, Colorado. L.G. Everist, Inc. is the sole landowner of this property, and our address is <br />7321 East 88th Avenue, Suite 200, Henderson, Colorado, 80640. <br />As you know, the reclamation plan for the Fort Lupton Sand and Gravel mine is multiple water <br />storage reservoirs. The Golden phase of the Fort Lupton site has been fully mined and <br />reclaimed as per our approved reclamation plan. The reclamation of the Golden phase includes <br />the construction and certification of the slurry wall, the backfilling, sloping, grading, and the initial <br />seeding. The seeding was completed in April and a copy of the invoice and ticket are attached. <br />Please see the two Reference paragraphs below for more details. <br />Reference - Golden Phase bonding: In January 2009, the bond monies associated with the <br />slurry wall around the Golden phase were released. The slurry wall had been previously <br />certified by the State Engineer. The slurry wall bond release came in conjunction with a bond <br />increase for other parts of the site as part of Technical Revision TR-3. We are including copies <br />of two relevant documents for easy reference: (a) the Division's TR-3 approval letter releasing <br />the bond monies for the Golden slurry wall, and (b) the State Engineer's certification letter <br />approving the slurry wall lining. This release request is for the remaining bond (financial <br />warranty) and performance warranty on the Golden phase. <br />Reference - Golden Phase vegetation requirements: In anticipation of the approval of the <br />Technical Revision (TR-4), dated April 10, 2009, we are making this request for the release of <br />the remaining financial and performance warranties associated with the Golden phase prior to <br />full revegetation. In that Technical Revision, we requested that the Division grant full financial <br />and performance warranty release of reclaimed phases of the Fort Lupton site in a less than <br />fully vegetated state. The justification for the Technical Revision request was because the <br />permit holder, L.G. Everist, Inc., and the City of Aurora (Aurora) have entered into a Purchase <br />and Sale Agreement in which Aurora has agreed to acquire the water storage reservoirs and <br />FL-DRMS-PartialReleaseReq-Golden-050409.doc - via Hand Delivery