2019-10-01_REVISION - M2019028

• Permit No: M2019028
• IBM Index Class Name: REVISION
• Doc Date: 10/1/2019
• Doc Name: Adequacy Review Response #2
• From: J & T Consulting
• To: DRMS
• Email Name: AME
• Media Type: D
• Archive: No

RE: J-2 Contracting Company-DPG Pit-Permit No. M-2019-028
112(c) Permit Application
Adequacy Review No. 2 Response 9/27/19
-2-
with them on Wednesday, September 26'h, and they indicated that all of the areas within
the mining phases were non jurisdictional. Nick Franke with the Army Corps of
Engineers will be putting together the formal response and should be sending that to us
by mid-October. As soon as we have the formal response we will provide it to the DRMS.
J-2 Contracting commits to not mining any of the areas that are being reviewed by the
Army Corps of Engineers until we have their formal response for the determination.
Exhibit L -Reclamation Costs (Rule 6.4.12):
4) The operator's response to item no. 28 states that costs to reclaim the buried dewatering
pip to extend from the recharge pond to the river have been included in the revised Exhibit
L bond calculation. However, the Division could not find costs for this item in the revised
bond estimate provided. Please be sure the bond estimate includes costs to reclaim the
dewatering pipe. Response: The costs to reclaim the dewatering pipe are now
included in the revised bond estimate. Please see the attached bond estimate.
5) The Division accepts the operator's proposal to submit a combination of dedicated water
shares and $150,000 to cover administrative costs for converting the water shares to
augmentation use in lieu of submitting 100% of costs for installing the Phase 1 slurry wall.
This unique bonding approach only applies to Phase 1 mining. Therefore, prior to opening
up Phase 2, the operator must submit a Technical Revision to increase the maximum
disturbed area and to re-evaluate the required financial warranty accordingly. If, at that
time, the operator can provide a letter from the State Engineer's Office approving the
Phase 1 and 2 slurry wall enclosure, then the operator would be required to post 20% of
total installation costs for that enclosure, and the dedicated water shares will no longer be
necessary. Please be advised, upon application approval, the operator would have one
calendar year to submit the affidavit for dedicated water shares along with the required
financial warranty to receive permit issuance.
Response: No response required.
Exhibit S - Permanent Man-made Structures (Rule 6.4.191:
6) The operator's response to item no. 53 states the certified mail receipts (showing structure
agreements were attempted for all owners of structures located within 200 feet of the
proposed affected land boundary), were sent along with the letters to match the receipts in
response to the Division's July 12, 2019 email. The Division has reviewed the materials
submitted and has the following comments:
a. The operator has provided a copy of the Certified Mail Receipt and the proof of
notice to all owners of record of the affected land and the owners of record of all land
surface within 200 feet of the affected land boundary for PDC Energy, Inc. However,
the Division could not find a copy of the structure agreement mailed to this entity.
Please provide a copy of the structure agreement that was mailed to PDC Energy,
Inc.
b. The operator has provided a copy of the Certified Mail Receipt and the proof of
notice to all owners of record of the affected land and the owners of record of all land
surface within 200 feet of the affected land boundary for Kerr-McGee Oil & Gas
Onshore LP. However, the Division could not find a copy of the structure agreement
mailed to this entity. Please provide a copy of the structure agreement that was
4r, 305 Denver Avenue—Suite D•Fort Lupton CO 80621 •Ph: 303-857-6222•Fax: [phone]