Laserfiche WebLink
<br />STATE OF COLOlZADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl o(Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Phone: 1303) 866-3567 <br />FAJ(: 13031 8328106 <br />December 17, 1993 <br />of cow <br />,,ti 4 <br />rc ii O <br />'~r8 ]6 ~• <br />Roy ROme. <br />Governor <br />Michael B Long <br />Mr. A. Reid Jones, Vice President - Finance oiv~sion Dneaor <br />VALCO, Inc. <br />P. O. Box 550 <br />Rocky Ford, CO 81067 <br />RE: Finanial Warranty securing Permits M-77-023, H-77-222, M-77-22.3, M-77- <br />559, M-77-560, M-77-572, H-77-573, M-78-287, M-81-014, M-81-13'3., M-84- <br />008 and M-86-015 <br />Dear Mr. Jones: <br />On December 16, 1993, the Division of Minerals and Geology conducted a review <br />of your files and found the following: the new appraisal for the pro)~erty <br />securing the reclamation bonds of VALCO, Inc. to be inadequate. Dur::ng a <br />cursory inquiry this Office found property in the area of the subject: deeded <br />property to have a market value of approximately $250/Acre, includincT <br />minerals, compared to the $4,700/Acre claimed in the appraisal. <br />We believe this ie in violation of: C.R.S. 34-32-117(6)(a) for failure to <br />maintain the Financial Warranty for the life of the permit. <br />Therefore, we have reason to believe that a violation exists to the tLbove <br />referenced Permit Numbers and to the Law, and have scheduled this matter <br />before the Mined Land Reclamation Board. <br />A Formal Public Hearing will be held during the January 26 and 27, 1'.194 Board <br />meeting for consideration of possible violation. The hearing will bf: held in <br />Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 9:00 a.m. or <br />as soon thereafter as the matter can be considered. At that hearing you will <br />have the opportunity to be represented and heard. It will be reitertlted that <br />there is reason to believe that you are in violation of the provieiorle noted <br />above. <br />If the Board finds a violation at this hearing, it may issue a Cease and <br />Desist order, assess a Civil Penalty in the amount of $100 to $950 far each <br />day of violation, or order the permit be suspended, modified, or revoked. In <br />addition, it may set the matter for consideration of forfeiture of $~~00,000 <br />financial warranty at a subsequent hearing. If you have evidence indicating <br />that the possible violations noted above do not exist or have been corrected, <br />please provide it to us ae soon ae possible or bring it to the hearirlq. In <br />order to correct this matter, you may: (1) poet the $251,704 insufficiency; <br />(2) withdraw the Deed of Trust and submit the full $329,954 bond in ~~n <br />alternative warranty type; or (3) submit a recalculation of your boucle with <br />proof of sufficient reclamation activity to justify a decrease in yoL~r <br />reclamation bond liability to the $78,250 currently secured. <br />If you have any questions, please contact James Stevens. <br />SiS nce <br />MICHAEL B. LONG <br />Division Director <br />MBL/JCS/lpl <br />CERTIFIED MAIL NO. P 296 525 766 <br />Return Receipt Requested <br />