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r III IIIIIIIIIIIII III • 5~ 1A1 ~ vF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 131) Sherman 51., Room 215 Denver. CO 80203 Phone: 007) 866-3567 FA%: (1071 8328106 November 4, 1995 Mr. David King Mountain Gravel & Construction Company 601 Central Avenue P.O. Box 788 Dolores, CO 81323 4 ._, ~~~I WI-t ~~ . ~'~'~ ~~ nF. Cpl ~ r ~~<.~~b ~.,.~g•~ rB]6 ~ Roy Romer Governor Michael H Lung Division Di~ec mr RE: Adequacy of Operator Response to Possible Problems Identified in DMG 8/30/95 Inspection Report and Adequacy Letter TR-01, Substitute for Notice of TC, Wallace Pit, Permit No. M-83-028. Dear Mr, King: Thank you for your timely response to the issues addressed in DMG inspection report from the 8/30/95 inspection of the Wallace Pit. On 1 1 /2/95 DMG field office in Durango received the rider to the financial warranty, effective 10/31 /95, increasing the amount of warranty from 55000.OOto 521,514.00. We have forwarded the bond document to Ms Debbie Mulloy at the DMG Denver office for processing and approval. DMG has reviewed the operators' responses to the Possible Problems IPeI listed in DMG 8/30/95 inspection report and has determined that the operator has adequately addressed PB 1, 2, 3 and 6, as listed in that inspection report. DMG has determined that the operator has not adequately addressed PB 4 and 5, as listed in DMG 8!30/95 inspection report. PB 4 stated that a discrepancy existed between the annual reports submitted for the Wallace Pit operation and conditions observed and recorded by DMG during the 8/30/95 inspection. The annual reports state that mining operations have not commenced and that 0 acres have been affected. Observations recorded by DMG on 8!30/95, suggest that mining operations had commenced but that the operation has been dormant for several years. PB 4 requested an explanation for the apparent discrepancy. Operators' response, item 4 of letter dated 10/30/95, stated that the annual reports were correct, no material had been removed from the permit area but that the disturbance was from the original stripping of the pit area. PB 5 stated that the operator had not submitted a Notice of Temporary Cessation ITC), as required by Rule 1 .13.5, or a request for extension of TC as provided for under Rule 1 .13.8. PB 5 listed four options available to the operator to correct the TC issue. Operators' response, item 5 of letter dated 10/30/95, indicated that the operator had elected to execute option Ic), as listed in DMG 8/30/95 inspection report, under the four options available to the operator to correct the TC issue. Item 5 of the operators letter dated 10/30/95, is a request for Technical Revision ITR) to the Wallace Pit permit to allow intermittent mining activities as provided for under Rule 1.13.7.