REV13229

• Permit No: M1977227
• IBM Index Class Name: Revision
• Doc Date: 9/21/2001
• Doc Name: RECLAMATION BOND MESITA HILL MINE M-77-227
• From: DMG
• To: COSTILLA CNTY
• Type & Sequence: SI2
• Media Type: D
• Archive: No

III IIIIIIII
999 IIIII III

STATE OF

COLOlZ~DO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman S[., Room 215
DIVISION O F
Denver, Colorado 80203
Phone: [phone] MINERAL S
fAX~. 1303) 832-6106 &
September 21, 2001 G E O L O G Y
RECLAMATION
MINING•SAFETY
Mr. Floyd E. Espinoza
Cos[illa County Commissioner gill Owens
P.O. BOX 100 Governor
San Luis, CO 81152 Greg E. Walther
Executive Director
RE: Reclamation Bond -Mesita Hill Mine -File No M-1477-227 Michael B. Long
. Division Director
Dear Commissioner Espinoza:
Thank you for your correspondence about the Mesita Hill Mine.
This Office has been in negotiations concerning the amount of the financial warranty for sometime with the
Mesita Hill Mioe, operated by Colorado Aggregate Company. We reduced the amount of our initial financial
warranty calculation as a result of our discussions with the Operator. Presently, the Office is requiring the
Operator to raise the existing financial warranty of $142,700 to $397,142. The Operator has already posted
the additional financial warranty.
The provisions of the Constmction Materials Act require an operator [o maintain a financial warranty
adequate for completion of [he approved reclamation plan. If the Office finds, during art inspection, [hat the
existing financial warranty is not adequate to complete the approved reclamation plan, the Office is to notify
the operator that the he has 60 days to post the additional financial warranty. Alternatively, the operator may
complete sufficient on-site reclamation and/or revise the approved reclamation plan so that the outstanding
reclamation liability matches the financial warranty held by the Office.
In the case of the Mesita Hitl Mine, the Operator has decided to post the additional financial warranty.
There are a number of financial instruments an operator may choose in order to provide the required financial
warranty. These include cash, corporate surety, irrevocable letters of credit, certificates of deposit, deeds of
[rust and security agreements, self-insurance, an individual reclamation fund, and salval;e credit and first
priority lien on project-related fixtures and equipment. (The last two items in the list of financial instruments
have limited use.) It's the operator's decision to determine which financial warranty insrrlrment is best suited
to their individual financial situation.
If you have any additional questions, please feel free to call rye at [phone].
Respectfully,
,~~~~~~
H. Bruce Humphries
Minerals program supervisor
cc: Jim Dillie
tortes/espinoza costilla co m77227.doc