2002-04-19_REVISION - M1977170

• Permit No: M1977170
• IBM Index Class Name: Revision
• Doc Date: 4/19/2002
• Doc Name: Extension to Submit Financial Warranty Increase
• From: DMG
• To: Walsenburg Sand & Gravel Inc
• Type & Sequence: SI1
• Media Type: D
• Archive: No

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STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
April 19, 2002
DIVISION OF
MINERALS
GEOLOGY
RECLAMATION
MINING•SAFET7
- Bill Owens
Mr. Frank Butala Governor
Butala CDnstructFDn Company Greg E. Walther
7625 Hwy. 50 Executive Director

Salida, CO. 81201 Michael B. Long
Divixion Director
Re: Request for an Extension to Submit a Financial Warranty Increase, SI-1, Butala Gravel Pit,
M-1977-170
Dear Mr. Butala:
The Division received your request to extend the due date to submit a $28,150 increase in the
financial wazranty, as required in the Division's February 22, 2002 notice letter.
Your letter also discusses possible changes in your reclamation plan (the old wash pond area)
and your statement that bonding should not be required for the Creosote Area. The decision to
exclude backfilling the old wash ponds was made by the Mined Land Reclamation Boazd at the
September 23, 1998 meeting. As you recall, the Board said that the wash ponds must be
backfilled after mining ceases unless the operator can demonstrate to the Division's satisfaction
that all applicable Colorado water laws and regulations are complied with if the ponds aze not
backfilled. However, according to the Boazd order, if the ponds are not backfilled, the highwalls
must be graded to a 3:1, or less, slope. The Boazd also required sufficient bonding to backfill the
ponds (see 1998. amendment application). If you will submit sufficient documentation to the
Division from the State Engineer's Office to demonstrate compliance with applicable water laws
regarding any, and all, water issues for the ponds, the financial warranty requirement can be
reduced.
In reviewing the bonding requirement for the Creosote Area we should review the reason the
Division required any bonding at all for the area. First, lets look at the definition of what affected
land is (land that must reclaimed). Affected land means the surface of an area within the state
where a mining operation is being or will be conducted, which surface is disturbed as a result of
such operation. Affected lands include but shall not be limited to private ways, roads (except
those which aze excluded); refuse banks or spoil piles; evaporation or settling ponds; work,
pazking, storage or waste discharge areas; and areas in which structures, facilities, equipment,
machines, tools or other materials or property which result from (product stockpiles) or are used
in such operations aze situated (see Rule 1.1(3)). Now lets look at whether the Creosote Area is
included in a mining operation. Is the azea being disturbed in conjunction with mining
operations? Obviously it is since it is being used to stockpile excavated material which originated