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CODNR <br />January 26, 2017 <br />COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Jerry Nettleton <br />Moffat County Mining, LLC <br />29515 Routt County Road 27 <br />Oak Creek, CO 80467 <br />RE: Williams Fork Mines (C-1981-044); Proposed Bond Adjustment (SI -02) and <br />Opportunity to Request Informal Conference <br />Dear Mr. Nettleton, <br />The Colorado Division of Reclamation, Mining and Safety (Division) is proposing a bond <br />adjustment/surety increase (SI -02) for the Williams Fork Mines (DRMS Permit No. C-1981-044). During <br />the Division's 2016 Mid -Term Review No. 7 (MT -07), the Division updated the site -wide reclamation cost <br />estimate for the Williams Fork Mines permit developed during the Division's 2014 review of Permit Renewal <br />No. 6 (RN -06). Several revisions to the Williams Fork Mines permit were approved subsequent to the Final <br />Approval of RN -06; however, none resulted in increases in reclamation liability. Additionally, no bond release <br />requests reducing the mine's liability were approved following the Final Approval of RN -06. The site -wide <br />reclamation cost estimate updated for Mid -Term Review MT -07 was therefore simply an update of the August <br />2014 RN -06 site -wide cost estimate, using 2016 reclamation unit costs. This updated site -wide reclamation <br />cost estimate was sent to Moffat County Mining, LLC on March 2, 2016 with the Division's MT -07 Mid -Term <br />Review Findings Document. A response to Mid -Term Review MT -07 has not been provided to the Division. <br />The site -wide reclamation liability amount calculated in conjunction with Mid -Term Review MT -07 is <br />$5,001,871.44. This is an increase of $380,921.92 over the $4,620,949.52 reclamation liability amount <br />approved via RN -06. In accordance with Rule 3.02.2(4)(a), the Division hereby notifies Moffat County <br />Mining, LLC of this proposed reclamation liability increase, and further provides Moffat County Mining with <br />an opportunity for an informal conference regarding the adjustment. If Moffat County Mining, LLC wishes <br />to participate in an informal conference, the Division asks that a written request for an informal conference be <br />submitted to the Division by February 10', 2017. If a request for an informal conference is not submitted by <br />this date, the Division will assume that Moffat County Mining LLC declines to participate in an informal <br />conference and the Division will issue a proposed decision adjusting the bond amount accordingly. <br />If you have any questions, feel free to contact me at (303) 866-3567, extension 8147. <br />Sincerely, <br />Tabetha N. Lynch <br />Environmental Protection Specialist <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director <br />