2002-02-11_REVISION - M1980170 - Laserfiche WebLink

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• • ~~-~' STATE OF COLORADO /DIVISION OE MINERALS AND GEOLOGY Department of Natural Resources 7373 Sherman St., R(o~om 215 a® Dhaner( 03) 866 3 6R~~~~ a ~® FAX: (3031832-8706 FE815~ Qivision of Minerals and Geology February 11, 2002 DIVISION OF MINERALS GEOLOGY REG LAMATION M INING•SArETY Bill Owens Governor Greg E. Wakher Executive Director Carl F. Dismant /Bachelor Silver Mines Company P.O. Box 965 Ouray, CO 81427 Re: Bachelor Mine -Syracuse Portal, Permit No. M-1980-170, Routine Reclamation Cost Estimate, Notice of Bond Increase. Dear Mr. Dismant, Michael B. Long Division Director The bond amount for the site named above is currently $1,200, which is the amount that was set at the time that the permit was issued in 1980. I have reviewed the reclamation plan for the mine, and have recalculated the reclamation costs. The costs are based on the currently-approved plan and the present condition of the site. The present bond amount is not sufficient to perform the reclamation. Amore detailed examination of the required tasks and the rise in costs of equipment, labor and fuel over the past twenty years are the reasons for bond increase. The new bond amount has been calculated to be $6,256, which is an increase of $5,056. The fact that the mine is approved to be "reclaimed" as a tourist mine actually helps to reduce the new estimated bond amount, mainly since the structures will not be removed at the conclusion of mining. The sheets in the enclosed packet are fairly self- explanatory, but I will add a little information in the next few paragraphs. The attached packet contains all of the detailed reclamation task figures, arranged as follows: one summary sheet showing all tasks and their costs, a series of individual tasks sheets showing the detailed costs, and equipment production sheets. All buildings were allowed to remain with no demolition or removal costs, since they would all presumably be utilized in the operation of the site as a tourist mine. Likewise, there is no cost for the portal closure in the reclamation plan, since the portal would remain open but secured against unauthorized entry. However, if the condition of any of the buildings becomes degraded to the point that it cannot safely be used for the mining or tourist operation, a demolition cost will have to be added to the bond. Similarly, if it is determined that the portal grate is lacking or too degraded to function, a grated closure cost will be added to the bond. The existing roads are approved to remain, as well as the gravelled area around the buildings and portal. Minor site grading will be necessary to fill pits and eliminate steep slopes, especially on some of the west edge. A small area will require fines or topsoil to be respread, and revegetation. Please review these reclamation tasks and contact me promptly if you notice any errors or omissions. Please be aware that State law allows the Division to review bond amounts and require additional bond if it is necessary. The law states that upon notification that additional bond is needed, the operator has 60 days to provide that additional bond. This letter is your notice. The additional bond must be received by the Division by April 12, 2002.