2013-11-12_REVISION - M1985112

• Permit No: M1985112
• IBM Index Class Name: REVISION
• Doc Date: 11/12/2013
• Doc Name: Adequacy Review TR01- Joseph King response
• From: DRMS
• To: Joseph R. King
• Type & Sequence: TR1
• Email Name: PSH
• Media Type: D
• Archive: No

Loloff Mine
TR -0 1 Joseph King Response Letter
Page 2 of 3
The existing reclamation bond is not adequate to accommodate for the long -term
augmentation requirement for the site. Rule 4.11.1(2) requires the Operator to provide
another form of Financial Warranty prior to issuance of the permit. As the reclamation fund
increases in value, this form of Financial Warranty may be decreased in value so long as the
sum of Financial Warranties is the amount specified by the Board or required by the Act.
As stated in the Division's letter to Mr. Loloff dated September 7, 2012, the Division agrees
the best solution for the Operator to comply with the long -term augmentation requirement
for the site is to purchase the required water rights and dedicate the shares to the Office of
the State Engineer (SEO).
Until the water shares are purchased and dedicated, the Division will hold a financial
warranty to backfill the exposed groundwater as detailed in the long -term augmentation
letter dated March 30, 2010. The Division's estimate to backfill the existing exposed
groundwater will include the available onsite backfill material in the northeastern portion of
the site. Once the shares are committed and accepted by the SEO, the Division will remove
the backfill calculation from the financial warranty estimate.
The Division has calculated the required financial warranty associated with Technical
Revision No. 1 (TR -01) at $2,074.00.00. A copy of the financial warranty calculation is
attached for your review.
As required by Rule 4.2.1, the Operator will have up to sixty (60) days to post the additional
financial warranty from the date of written notice from the Division. The due date for
submittal and acceptance of the financial warranty by the Division will begin following
Division approval of the technical revision. Failure to post the required financial warranty
within the 60 -day timeframe will result in a Reason to Believe a possible violation letter
(RTB) to be issued by the Division for a possible violation of C.R.S. 34- 32.5- 117(4)(b)(1)(b).
The possible violation may result in civil penalties and corrective actions being issued by the
Mined Land Reclamation Board.
Please be advised the Loloff Mine technical revision may be deemed inadequate, and the
application may be denied on November 25, 2013 unless the above mentioned adequacy
review items are addressed to the satisfaction of the Division. If you feel more time is needed
to complete your reply, the Division can grant an extension to the decision date. This will be
done upon receipt of a written waiver of your right to a decision by November 25, 2013 and
request for additional time. This must be received no later than the deadline date.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines