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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 />December 9, 2009 <br />Mr. Ronald Hedrick <br />GCC Rio Grande, Inc. <br />3372 Lime Road <br />Pueblo, CO 81004 <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 />Re: File No. M -1997 -064, Salt Canyon Project, 112c Conversion Decision Letter -.Conditions, Financial and <br />Performance Warranty Request - Construction Material Operation <br />Dear Mr. Hedrick: <br />On December 9, 1997, the Division of Reclamation, Mining and Safety approved your I I 2 conversion application. The <br />conditions to the approval are noted below: <br />The maximum allowable disturbance cannot exceed 10 acres at any given time. Prior to exceeding the 10 acres of <br />maximum disturbance, GCC must receive written approval from the Division. <br />The amount of financial warranty set by the Division for this operation is $34,916.00. The Division is holding a warranty <br />in the amount of $20,600.00 for the area covered under the 110 permit, which is being converted into the 112 permit. You <br />must submit an additional financial warranty in this amount of $14,316.00 and a performance warranty in order for us to <br />issue a permit. In the event you have requested a financial warranty form, we have enclosed it in this letter. If you have <br />not, please select a type of financial warranty from Rule 4.3. Then contact us so that we can provide you with the <br />appropriate warranty form. We have enclosed a performance warranty form with this letter for your use. <br />PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTIL A PERMIT HAS BEEN <br />ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE <br />WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR <br />FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />If you have any questions, please contact me. <br />Sincerely, <br />Berhan M. Keffelew <br />Environmental Protection Specialist <br />Enclosure Performance warranty form <br />cc: Elizabeth Merry <br />Office of <br />Minp. d -1 and Rarlamatinn <br />r)Pnvar . r:ranrl hinrtinn • Nirnnan <br />STATE OF COLORADO: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Office of <br />