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KEPI ("A <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 />May 30, 2013 <br />David Dillon <br />Sandco Inc <br />P.O. Box 4440 <br />Durango, CO 81302 <br />STATE OF COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Dillon Ranch Pit, Permit No. M- 1987 -064, Succession of Operators Approval, Revision No. <br />SO-1 <br />Dear David Dillon: <br />On March 29, 2013, the Division of Reclamation, Mining and Safety approved the succession of operators <br />from Sandco Inc to Elam Construction, Inc. dba Sandco, Inc. for this operation. Elam Construction, Inc. dba <br />Sandco, Inc. is now the permitted operator of the Dillon Ranch Pit, and as such, is responsible for all <br />provisions in M -1987 -064, as well as those specified in the Rules and Regulations. <br />Enclosed are the following bond(s) and the Performance Warranty you originally provided. <br />Bond Type(s) <br />Financial Warranty Letter of Credit <br />Bond Number(s) Bond Amount(s) <br />8300091689 $20,216.00 <br />A copy of the Irrevocable Letter of Credit is provided for your records. The original Letter of Credit is being <br />returned to Bank of Colorado for release. <br />These have been released as of March 29, 2013 Division approval for the succession of operators. You <br />should advise your bank or insurance company of this release by copy of this letter. <br />If you have any questions, please contact me. <br />Sincerely, <br />u4w�' 6/k�j <br />Barbara Coria <br />Financial Assurance Specialist <br />Enclosure <br />CERTIFIED MAIL NO.7001 1 3500 0002 9605 8472, Return Receipt Requested <br />Cc: Kate Pickford, Division of Reclamation, Mining and Safety <br />Mr. Mark Horn Certified Mail no. 7011 3500 0002 9605 8489,rtn receipt requested <br />Bank of Colorado <br />1199 Main Street <br />Durango, CO 81301 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />