2005-02-16_REVISION - M1984014

• Permit No: M1984014
• IBM Index Class Name: Revision
• Doc Date: 2/16/2005
• Doc Name: Surety Reduction
• From: DMG
• To: Cotter Corporation
• Type & Sequence: SR1
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY ~-
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
February 16, 2005
Jerry Powers
Cotter Corporation `~
7800 E. Dorado Place
Suite 210
Englewood, CO 80111
/ ~/' -~
Re: JD- 8 Mine, Permit M-1984-014, Surety Reduction (SR-01).
Dear Mr. Powers:
COLORADO
DIVISION OF
MIN&RALS
GEOLOGY
REC LAMATION•M WINO
SAFETY•SOIENCE
Bill Owens
Governor
Russell George
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
Thank you for responding DMG staff's request for help in clearing up a data base problem
concerning the bonding for the above referenced site. As explained to Mr. Glen Williams and in
correspondence on this matter, the problem arose out of an update of the bond that showed a
decrease in the estimated reclamation liability on site in 2002. The estimated liability figure of
$41,191.00 was used when the bond was renewed. The problem was that DMG staff did not
catch the discrepancy at the time of submission and therefore was equally responsible for what
amounts to a book keeping error. Future correspondence will not include figures unless an
increase is in order to help alleviate the problem.
Staff cannot, for a myriad of reasons; change decreases in bonds in the data system without
properly documented the reasons for such adjustments and following the Rules and Regulations
with regard to surety reductions. Request for reductions falls on the operator's shoulders and
that is why staff must bother Cotter to help correct the discrepancy. To that end, staff has
received Cotter's letter of February 10~', 2005 requesting the reduction to clear up the matter,
Under normal circumstances, Rule 4.16.1 requires that such request be submitted by Certified
mail. However, due to the circumstances involved with this issue, Cotter's separate
communication to the Division is fine. The only matter of Rule that needs to be clarified is
4.16.1(2), which requires the names, addresses and telephone numbers of all owners of record
for the affected lands. Please forward this information to Barbara Chiappone in the Denver
Office. Once that is received in Denver, staff can proceed to clear up this matter for both our
sakes.
As a note of irony, staff has been instructed to review Cotter's mines that have gone back into
production, specifically JD-6, JD-8 and JD-9. Under past reviews of bond recalculations the
focus was on reclamation of sites "as is'". With resumption of mining, staff will be visiting the
sites with Mr. Williams to ensure surface impacts are not changing significantly. If operations
change the scenario for site reclamation, permits and bonds will have to reflect those changes.
Office of Office of Colorado