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STATE OF COLORADO <br />DIVISION OF MINERALS AND <br />Department of Na[ural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />January 5, 2006 <br />Tim Scanlon / <br />TMS Consulting <br />P.O. Box 53 <br />Saguache, Colorado 81149 <br />~~~EIVED <br />JAN 0 9.2006 <br />.-,a u4 iyiiReFals and Geology <br />COLORADO <br />DIVISION O F <br />MIN SRALS <br />GEOLOGY <br />IECLAMATION•MINING <br />SAEETY•EC IENGE <br />Bill Owens <br />Governor <br />RLlssell George <br />Executive Director <br />Runald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />~ / r/ <br />Re: Gray Pit #I, Permit No. M-2003-092, Reclamation Liability Update For AM-OI and Final issues <br />Prior to Decision. <br />Dear Mr. Scanlon: <br />The Division of Minerals and Geology (DMG) staff has updated the reclamation liability based on the <br />submission of AM-01 to add in an additional 5.3 acres to the permitted site. The new liability still <br />includes a task for the reduction of a highwall. This is necessary until the mining is complete and there <br />is no longer a highwall. Also, a ripping task for the full 18 acres has been added to compensate for <br />compaction of the area prior to any overburden /topsoil placement. As you may well be aware of, there <br />also has been significant price increases in seed and fuel over the past year. These issues all compound <br />to reflect a significant increase in the liability estimate. Please review the estimate and respond to staff <br />as soon as possible if there are any discrepancies or errors that may affect the overall costs. <br />If the pelmitee accepts the liability recalculation staff is requesting written verification for the record. <br />Also, staff has not received the Public Notice Affidavit from the newspaper for the publication of the <br />required notice. It appears that all other issues have been corrected or clarified to staff's satisfaction. <br />Therefore, if staff receives the Affidavit and agreement on the bond estimate a decision can be made <br />prior to the Decision Date of January 24`h <br />If you need additional information, please contact me at the Division of Minerals and Geology, Grand <br />Junction Field Office, 101 South Third Street, Room 301, Grand Junction, Colorado 81501, telephone <br />no. 970-241-1117. <br />Sincerely, <br />G. Rus ell Means <br />Environmental Protection Specialist <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />