APPCOR11604

• Permit No: C1984067
• IBM Index Class Name: Application Correspondence
• Doc Date: 1/18/1985
• Doc Name: REVISION TO PEERLESS RESOURCES EXPLORATION PERMIT BOND CALCULATIONS
• From: MLRD
• To: MIKE SAVAGE
• Media Type: D
• Archive: No

Richard D. Lamm
Governor
DATE:
TO
FROM

DEPARTMENT OF NATURAL RESOURCES
David H. Getches, Executive Director
MINED LAND RECLAMATION DIVISION
DAVID C. SHEL70N, Dlrecfor
January 18, 1985
Mike Savage
Tom Gillis
RE: Revision to Peerless Resources Exploration Permit - Bond Calculations
Material Volumes and Movement and Placement of Material:
Based on the information contained in the initial exploration permit
application and subsequent revision request dated January 9, 1985, I was not
able to determine how much and where the initially excavated material (placed
in the area of the "green pond") will be replaced during backfilling, and so
was unable to calculate push distances, gradients, and material volumes. Will
this material be replaced at the extreme west end of the exploration area
following coal extraction, or will all or portions of the material be used to
partially backfill the highwalls adjacent to the "green pond"?. Part of the
problem lies in not being able to determine how much backfilling and grading
is associated with the "clean up" work to be undertaken in the previously
disturbed area, and how much backfilling and grading is associated with the
actual exploration work.
The exploration permit revision request should be amended to provide an
accurate, quantitative description of how, where, and in what quantities
materials taken from the initial excavation will be placed during the
backfilling and grading operation. This description should clearly delineate
the sequence and movement of overburden and other earth materials utilized in
reclaiming the previously disturbed areas. The description should also
quantify the lengths and heights to which both existing and newly created
highwalls will be backfilled.
The basic bonding assumption made regarding the exploration permit is that the
permanent program permit application will not be approved and that the
operator will have to completely reclaim the area following completion of
exploration activities. An additional side note is that if the request for
16,000 tons of coal is limited by the Division to 10,000 tons, the exploration
bond will have to be recalculated altogether.
Estimating Production:
The cost estimates provided should be amended to consider the full range of
possible production adjustment factors, i.e. operator efficiency assuming an
average operator, nature of material being moved, job efficiency, haul or push
gradient, and weight correction. It appears that the calculations submitted
have only considered operator and job efficiency factors.
423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203 Tel. [phone]
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