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<br />DIVISION OF MINERALS AND GEOLOGY <br />Deparlmenl o(Nalural ResourCeS <br />131) Sherman Sl.. Room ? I i <br />Denver, Colorado 80?07 <br />Phone: 13031 866-3167 <br />FAA: 1303) 872~tl106 <br />June 21, 1996 <br />Mr. Douglas Conger <br />Engineering Geologist <br />Nielsons, Inc. <br />P.O. Box 1660 <br />Cortez, CO 81321 <br /> <br />STATE OF COLORADO <br />DENVER <br />d~~~CC <br />Roy Romer <br />Governor <br />lames S Lochhead <br />Executive Direcror <br />Michael B. Lons <br />Division Dire~iar <br />RE: Notice to Increase the Financial Warranty, <br />Cortez Quarry, Permit No. M-76-059. <br />Dear Mr. Conger: <br />Thank you for your letter, dated 6/12/96, responding to DMG Notice to Increase the <br />Financial Warranty, dated 5/3/96. DMG Durango received your response letter on <br />6/19/96. The purpose of this correspondence is to respond to your comments regarding <br />the reclamation tasks identified in DMG 5/3/96 reclamation cost summary. <br />Certified mail return receipt from DMG 5/3/96 notice, indicates that the operator received <br />the notice on 5/7/96. Pursuant to Rule 4.2.12), the operator has until 7/6/96 to post <br />additional financial warranty. Please respond to the issues addressed within this letter <br />prior to 7/6/96, so that we can reach an agreement and secure an appropriate amount of <br />financial warranty. <br />1. Operator stated in 6/12/96 response letter that the Mining Plan, amended 3/92, did <br />not include highwall reduction. <br />Page 1, paragraph 5, of Exhibit D, Mining Plan, amended 3/92, states, "A bench <br />will be left between the existing level and the new level of mining. This bench will <br />be from five to ten feet in width, and approximately 1400 feet in length along the <br />north and east side of the quarry area." <br />Page 2, paragraph 4, of Exhibit E, Reclamation Plan, amended 3/92, states, "...The <br />benches will be from five to ten foot width, located at ten to twenty foot elevation <br />increments, and created as material is removed along the north and east pit walls. <br />The walls will be left an approximate 1/2:1 slope and like the benches will not be <br />revegetated." <br />DMG 5/3/96 reclamation cost calculations assumed a 40' vertical highwall, without <br />the safety benches. Reclamation of the 40' highwall would require highwall <br />