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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 90203 <br />Phone: (303) 8663567 <br />FAX: (303) 832.9106 <br /> <br />RECEIVED <br />OCT 2 7 2005 <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />RE CLANATION•MININO <br />SAEETY•ECIENCE <br />October 20, 2005 <br />Divisi90 ~f Miaerels and Geology <br />Bill Owens <br />Governor <br />Walter Bump alls:eu eeorge <br />Fesco, Inc. rExl,tive ofleclnr <br />5500 U <br />Hwy <br />64 <br />S ~~ o~Y <br />. <br />. <br />. D <br />Farmington, NM 87402 Natural Resource Trustee <br />Re: Ignacio Pit, Permit No. M-1992-054, Receipt of 110 to 112 Construction Materials Reclamation Permit <br />Conversion Application Package, CN-1 <br />Dear Mr. Bump: <br />On October 14, 2005, the Division of Minerals and Geology (Division) received an application from LBCR, LLC to <br />convert the abovecaptioned 110 Construction materials operation to a 112 Construction Materials Reclamation Permit. <br />The Conversion application (CN) presumes that LBCR, LLC would be the operator. The Ignacio Pit permit and ~ <br />associated reclamation bond are still held for Fesco, Inc. On October 18, we received a succession of operators form <br />from LBCR, LLC. Based on conversations with LBCR representatives, we will presume that DMG will review the CN <br />application, establish a reclamation bond amount, and that LBCR, LLC will provide bond sufficient to reclaim the azea to <br />be covered by at least the first mining phase of the CN. Once the SO is approvable and sufficient bond posted, we can <br />complete review of the CN and move toward approval. <br />To help expedite the CN application, we will process the SO and the CN simultaneously. Preliminary review of the <br />information received in the CN application detemlined that the following items must be received before the Division can <br />consider your application as being submitted and technical review can begin: <br />F.XAFRTT N - SmErce nfi,egal R~ht to F.nter (Rule 6.4.t4r1~ You must provide the source ofyour legal right <br />to enter and initiate a mining operation on the affected land. The submitted materials list the mineral owners, but <br />does not include any lease or other instrument or proof that their interests were conveyed to the proposed <br />operator for mining purposes. The permit application at Item 6 indicates that the subsurface rights are owned by <br />Samson Resources but Exhibit O indicates that the mineral owners aze those provided in attachments titled <br />Address Book Information." Please clarify. <br />F.XAFRiT S -Permanent Man-Made StrnetEErea !Role 6A_191: you must provide information sufficient to <br />demonstrate that the stability of any structures located within two hundred (200) feet of the operation or affected <br />land will not be adversely affected. The pre-mining map (Exhibit C) shows at least the following structures: <br />fences, buried irrigation pipe, stock pond, irrigation pond, La Boca ditch, LPEA Electrical Utility line. 1'he <br />current statement that LBCR will not affect structures within 200 feet is not sufficient to address this <br />requirement. Unless LBCR intends to keep all operations at least 200 feet from such structures, and state such in <br />the application materials, then they must secure access agreements including damage waivers or agreements or <br />conduct stability analyses showing that operations can take place safely inside the 200-foot boundaries. <br />Office of .Office of <br />