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'1 Ul a a 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 />October 1, 2010 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Ms. Elva Masters Executive Director <br />25901 US Highway 36 <br />P.O. BOX 47 Loretta E. Pineda <br />Director <br />Anton, CO 80801 <br />Re: File No. M-2010-037, Masters Pit #2, 112c Decision Letter - Conditions, Financial and <br />Performance Warranty Request - Construction Material Operation <br />Dear Ms. Masters: <br />On October 1, 2010, the Division of Reclamation, Mining and Safety approved your 112c mining permit <br />application. The conditions to the approval are noted below: <br />Stipulation No. Description <br />1. Ms. Elva Masters shall submit in writing to the Division of Reclamation, Mining and <br />Safety (Division) that the financial warranty be increased prior to opening an additional <br />phase(s). An increase of the financial warranty shall be requested, and provided with a <br />letter to the Division, by Ms. Elva Masters to the bonding/surety provider prior to <br />opening and mining an additional phase(s). The increased financial warranty and updated <br />bond forms shall also be provided to the Division from Ms. Elva Masters's bonding <br />surety provider. <br />The amount of financial warranty set by the Division for this operation is $15,500.00. You must submit a <br />financial warranty in this amount and a performance warranty in order for us to issue a permit. In the event you <br />have requested a financial warranty form, we have enclosed it in this letter. If you have not, please select a type <br />of financial warranty from Rule 4.3. Then contact us so that we can provide you with the appropriate warranty <br />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 <br />BEEN ISSUED BY THE DIVISION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND <br />PERFORMANCE WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE <br />ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines