ENFORCE33752

• Permit No: M1978056
• IBM Index Class Name: Enforcement
• Doc Date: 4/7/2003
• Doc Name: Reason to Believe a Violation Exists Follow-Up Letter
• From: DMG
• To: Varra Companies Inc.
• Media Type: D
• Archive: No

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STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203 D 1 V I s t o N o r
Phone: [phone] ~ M I N 1: RA L $
FAX: [phone] &
GEOLOGY
Apri17,2003 RECLAMATION
MINING•sA FE7Y
ML Chris Vatta Bill Owens
Varra Companies, Inc. eovernnr
8120 Ga a Street
g Greg E. Watcher
Ezecu[ive Director
Frederick, CO 80516
Ronald W. Cattany
Division Director
RE: Durham -Pit 117, Reason to Believe a Violation Exists Follow-Up Letter, Permit No. M-1978-056
Enforcement - Ol/?A/03 RTB Letter (Failure to Follow Reclamation Plan)
Dear Mr. Varta:
The purpose of this fetter is to clarify and summarize the status of pending enforcement action for the Durham - ~Pi[ 117.
On January 24, 2003 [he Division of Minerals and Geology (DMG) sent a "Reason to Believe a Violation Exists" lettecto ~ ' , .
you for failure to perform the reclamation as prescribed in the reclamation plan. This action was based: on. observation's.
noted during the Division's Januazy 9, 2003 inspection of the Durham -Pit 117. Since [hen, we had met'with-you on ~ :..
Februazy 4, 2003 at the Office of the Division and again on February 27, 2003 at the Office of the State Engineef to discuss
methods and permitting requirements for resolution of the possible violations noted in the Division's .January 9, 2003
inspection report. At present, [here aze three (3) outstanding DMG concerns. These concerns aze 1) submittal of an interim
reclamation bond in the amount of $300,000, 2) demonstration of compliance with permitting requirements of r}re Office of
the State Engineer for existing site conditions (Please see attached OSE correspondence which~.indicates that Vatxa
Companies, Inc. has me[ with representatives of the OSE and is in [he process of bringing the Durham -Pit 117 into
compliance with OSE requirements), and 3) submittal of a permit amendment application [o bring the site into compliance.,
with existing mining methods and site conditions. Also, the Office of the State Engineer requested. on March 3, 2003 that
Varra Companies, Inc, submit an application for a substitute water supply plan within 90 days and complete the permitting ,
process within 180 days.
Varna Companies, Inc, is currently scheduled to appeaz before the Mine Land Reclamation Board a[ the April 29-30, 2003
meeting for consideration of the possible violation noted above. If a properly executed replacement financial warranty of
$300,000 is received by the Division on or before April 28, 2003 the Division will continue the pending enforcement
action to the September 23-24, 2003 Board Meeting. In addition, if [he Division receives a complete application for a
permit amendment on or before September 1, 2003 the Division will withdraw the enforcement action scheduled for.the
September 23-24, 2003 Board Meeting.
If you have any questions, please contact me a[ [phone].
Sincerely,

Thomas A. Schreiner
Cc: Brad Janes, Varna Companies
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