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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 />June 11, 2010 <br />Mrs. Lynn M. Shults <br />L.G. Everist, Inc. <br />7321 E. 88th Ave., Ste 200 <br />Regulatory Manager <br />Henderson, CO 80640 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />Re: Lohmann Sand and Gravel Mine, Permit No. M-2001-017, Financial Warranty Reduction Approval, Revision <br />No. SR-1 <br />Dear Mrs. Shults: <br />On June 11, 2010 the Division of Reclamation, Mining and Safety approved your request for a Financial Warranty Reduction <br />based on the completion of the earthwork on the French property, and the SEO approval of the clay lining of the pit. Weld <br />County floodplain concerns have also been adequately addressed at this time for this portion of the site. The lined reservoir <br />on the French property may be used for water storage as deemed appropriate by the owners at this time, provided that it is in <br />compliance with all applicable Colorado Water Laws. <br />The amount of the warranty reduction will be calculated and submitted to the operator upon receipt of additional information <br />by DRMS. This decision will reduce the amount of the financial warranty, however, it does not approve any release of <br />reclamation responsibility for the tasks associated with this request. This property is still a part of the active permit area until <br />it meets final reclamation criteria and is released by DRMS. <br />If you have any questions, please contact me. <br />Sincerely, <br />Eric C. Scott <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines