REV16129

• Permit No: M1985115
• IBM Index Class Name: Revision
• Doc Date: 4/3/1987
• Doc Name: KNC INC GREER PIT FN M-85-15
• From: MLRD
• To: KNC INC
• Type & Sequence: SO2
• Media Type: D
• Archive: No

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STATE OF COLORADO
Roy Romer, Governor
DEPARTMENT OF NATURAL RESOURCES
MINED LAND RECLAMATION DIVISION
DAVID C. SHELTON, Dlrec[or
April 3, 1987
Mr. William W. Brinton, fontroller
KNC, Inc.
6808 Academy Parkway NE
Albuquerque, New Mexico 87109
Re: KNC, Inc. - "Greer Pit" - File N0. M-85-115
Dear Mr. Brinton:
We have received your letter dated March 13, 1987 concerning the status of the
Greer Pit. Please be advised that until such time as permit no. M-85-1T5 has
been transferred to another operator, your company remains the operator of
this mine. As such, KNC, Inc. retains the responsibility for adherence to the
requirements of the permit. There is a fairly simple method for transferring
this permit which I will outline below.
During a monthly meeting, the Mined Land Reclamation Board must approve a
request for a succession of operators and transfer of permit from KNC, Inc. to
another operator (presumably J. Pat and Lila N. Greer). A request package
must be submitted to our Division and must include the following: 1) A
completed "Request for Transfer of Permit and Succession of Operators" form,
on which KNC, Inc. signs off the permit and the proposed new operator signs to
assume the permit (all signatures being notarized); 2) Administrative
information concerning the new operator (provided by completing only the top
portion of page 2 of the "Limited Impact Operation (110) Application
Package"); 3) A new Performance Warranty provided by the proposed new operator
and 4) A new $5,000.00 Financial Iarranty, also provided by the proposed new
operator. When such a package has been submitted to us and approved, the
matter can be approved by the Board during the next regularly-scheduled Board
meeting. (The next Board meeting is scheduled for April 22-23, 1987.)
I have enclosed a copy of each of the first three forms mentioned in the
preceding paragraph. I have also enclosed two different types of financial
warranty options for use by the new operator. The first is for use with a
Certificate of Deposit. It should be filled out and submitted with an
origina] $5,000.00 Certificate of Deposit. The certificate should either be
made out solely to "Colorado Mined Land Reclamation Board" or should be
accompaniedTy an assignment sheet (example copy enclosed) assigning the
certificate to our Division. The interest goes back to the new operator. The
second form is for use with a Letter of Credit from a bank. It should be used
with an "Irrevocable Letter of Credit" in the amount of $5,000.00. The
required form for the bank to use for such a letter is also enclosed. A third
option is a Corporate Surety bond. You were sent this from by Diana Knode of
our office on February 27, 1987 when she notified you of the cancellation of
your $5,000.00 Corporate Surety for the Greer Pit.
_~~ ~e
423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203-2273 Tel. [phone]