2006-11-21_REVISION - M1978323

• Permit No: M1978323
• IBM Index Class Name: Revision
• Doc Date: 11/21/2006
• Doc Name: Notice of F/W Increase
• From: DRMS grm
• To: Parkerson Construction
• Type & Sequence: SI2
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
~~,~~~,
COLORADO
DIVISION OF
RECLAMATION
MINING
~Ct-
SAFETY
Bill Owens
Governor
lVOVember 21, 2006 ~ Russell George
Executive Director
Allen Parkerson Ronald W. Cottony
Division Director
Parkerson Construction Natural Resource Trustee
710 S. 15th Street
Grand Junction, Colorado 81501
Re: Woodring Pit, PermltNo.lYl-1978-323, Reclamation Liability Update-2006, Notice ofFinancia!
Warranty Increase SI-02. ~/
Dear Mr. Parkerson:
In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of
the approved reclamation plan, DRMS has updated the reclamation cost estimate (copy enclosed).
Please review the enclosed figures as soon as possible and contact our office if any calculation errors are
noted.
The last recalculation was in 2000, staff used the accepted tasks and volumes from the last recalculation.
The exception was staff calculated the costs of moving overburden with a loader and spreading with a
dozer as in the old estimate and moving the materials with scrapers and doing final grading with a grader
on the pit floor. It was more economical and saved time to use scrapers and a grader. A review of the
update shows increases due to inflation, in seed costs, mobilization and some overhead. Therefore, the
new reclamation liability is now estimated at $87,803.00. This is an increase of $10,982.00. Clearly,
the site is currently under-bonded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado
Land Reclamation Act, adequate financial warranty must be submitted to DMG within 60 days of
the mailing date of this report. Parkerson Construction may submit a rider to the current $76,821.00
held by the Division or submit a new bond in the entire amount. Questions regarding bond forms and
submittal of the bonding documents should be directed to Elizabeth Shelton in our Denver Office at the
address noted above. You may contact Ms. Shelton by phone at 303-866-4084 as well.
If you need additional information, please contact me at the Division of Reclamation, Mining and
Safety, Grand Junction Field Office, 101 South Third Street, Room 301, Grand Junction, Colorado
81501, telephone no. 970-241-1117
Sincerely
Division at ~ ~ ''inn.
G. Russell Means Mining and Safety
Environmental Protection Specialist
Office of Office of
Mined Land Reclamation Active and Inactive Mines