APPCOR12804

• Permit No: C1987072
• IBM Index Class Name: Application Correspondence
• Doc Date: 5/5/1987
• Doc Name: LA PLATA -RULE 2.05.4 B RULE 3
• From: MLRD
• To: PETER OCONNOR
• Media Type: D
• Archive: No

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°F `°~ STATE OF COLORADO
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~~ Roy Romer, Governor
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DEPARTMENT OF NATURAL RESOURCES ~1;<~
MINED LAND RECLAMATION DIVISION
DAVID C. SHELTON, Director
DATE: May 5, 1987
70: Peter O'Connor
FROM: Tom Gillis,~p~
RE: La Plata #1 Draft Findings
XX. Bonding - Rule 2.05.4(2)(b), Rule 3
Information pertaining to performance bonding and reclamation cost
estimates for the La Plata #1 Mine is presented in Section 2.05.4 of the
revised permit application.
A review of the Division's bond file for the La Plata #1 Mine indicates
that a type bond in the amount of ;58,200.00
( rom t e is
presen y 1n a ec is bond was su m1 e o an approved by the
Division as part of the coal exploration permitting process completed
recently for Notice of Intent No. X-87-201-00.
As part of the preliminary adequacy review of the permit application, a
detailed evaluation of the estimated cost of reclaiming the La Plata #1
Mine site was conducted by the Division. The applicant's initial
estimate of b30,000.00 contained no supporting calculations, therefore
the Division prepared a preliminary estimate based on information from
the reclamation plan portion of the application and utilizing
appropriate equipment costs, labor charges, and hourly production rates
from widely accepted cost reference publications. The Division's
preliminary estimate of X68,300.00 was forwarded to the applicant on
April 27, 1987. The applicant responded to this draft estimate by
providing some additional information regarding actual site conditions
and some clarifications as to specific requirements of the proposed
reclamation plan. The Division's preliminary estimate was subsequently
revised, resulting in a final acceptable bond amount of 558,200.00.
By virtue of the existing bond coverage of 558,200.00 currently in place
for the coal exploration portion of the operation, no additional bond
coverage will be required as part of the approval process for the
initial 5-year permit. The operation is in compliance with the
requirements of this section.
423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203-2273 Tel. [phone]