PERMIT FILE - 4/11/2008, 8:53:16 AM-MR1

• Permit No: P2007069
• IBM Index Class Name: PERMIT FILE
• Doc Date: 4/10/2008
• Doc Name: Adequacy review #2
• From: DRMS
• To: COAG Corporation
• Email Name: ESC
• Media Type: D
• Archive: No

t;SG
STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
v April 10, 2008
Mr. Mickey Fouts
COAG Corporation
PO Box 402
200 South Wilcox Street
Castle Rock, CO 80104
RE: Notice of Intent to Conduct Prospecting Op~ations
COAG Corporation; File No. P-2007-069; Adequacy Review #2
Dear Mr. Fouts,
COLORADO
DIVISION O F
RECLAMATION
MINING
-&-
SAF ETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Division of Reclamation, Mining and Safety ("Division") received your response to the Division's
adequacy letter dated January 8, 2008 on the COAG Corporation ("COAG") NOI Prospecting Project; File
No. P-2007-069. The Division has remaining items that need to be addressed prior to approval of the NOI.
COAG submitted an additional bond in the amount of $2,000.00. The Division currently has an
interim reclamation bond in the amount of $7,000.00 that was deemed incomplete due to the fact
that COAG must submit the bond form titled, "One Site Prospecting Financial Warranty Check
for Deposit in State Treasury." Please inform the Division as to the intent of the $2,000.00 and
$7,000.00 bonds. If the $7,000.00 bond is to remain in place, the bond form noted above will
need to be submitted.
2. COAG states that the primary entry (aka Franklin Shaft) will not be closed at the conclusion of
prospecting due to landowners desire to leave the shaft and hoist house building in its existing
condition and because of the possibility of obtaining a future mining permit. The Division
cannot approve leaving a shaft open because of the wishes of the landowner and unknown
future mining in the area. COAG will need to commit to securing both the Freighter Friends
Shaft and the Franklin Shaft as a component of the reclamation plan.
3. COAG states that they intend to install a removable shaft closure on the ventilation shaft (aka
Freighter Friends Shaft), and that bonding of the closure will not be necessary. The Division
must secure a reclamation bond for all areas that will be disturbed under the proposed NOI,
including Franklin Shafts. COAG has the following options;
• Post a reclamation bond for the Freighter Friends Shaft and the Franklin Shaft (and the
cost for other required reclamation) using the Division's specifications for shaft closure
with entry. Upon posing of the reclamation bond, COAG may proceed with the NOI
project at the Franklin Mine, or
Office of Office of
Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines