2004-10-20_REVISION - M1985029

• Permit No: M1985029
• IBM Index Class Name: Revision
• Doc Date: 10/20/2004
• Doc Name: FW Follow-Up
• From: DMG
• To: Ducommun Business Trust
• Type & Sequence: AM4
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman SC, Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
October 20, 2004 /
Mr. Dennis L. Ducommun ,/
Ducommun Business Trust
Box 848
Fraser, CO 80442
Re: Alma Placer Mine, Financial Warranty Follow-up for Amendment-04 pproval ,
Permit No. M-1985-029 i
Deaz Mr. Ducommun:
COLORADO
DIVISION OF
MINERALS
GEOLOGY
RECLAMATIO N~MINING
SAf ETY•SCIENCE
Bill Owens
Governor
Russell George
Executive Direttor
Ronald W. Canany
Division Director
Natural Resource Trustee
On May 21, 2004 the Division of Minerals and Geology approved the Amendment-04 application, which addressed
amending the permit application to revise the mining and reclamation plans to enlarge gravel mining area, add a portable
concrete plant, modify gold mining methods and sequence, change post-mining land use and update the overall
reclamation plan.
The approval resulted in an increase of the financial warranty from $34,165.00 to $148,000.00. Since there are two
distinct operations occurring on the site, a gravel operation and a placer gold mining operation, there is a different
reclamation liability, and consequently, a different financial warranty amount associated with each operation. At the time
the site was approved the gravel operator's shaze of the total financial warranty was $56,117.00 and the placer operators
share was $91,883.00. Since the placer operator's warranty increased so much, they requested a site meeting to discuss
what could be done on site to reduce the financial warranty. What was determined as the result of the meeting was that if
the financial warranty was correct for the situation as it existed at the time of the AM-04 approval. However, it was also
conveyed that the operator could reduce their reclamation liability through a combination of actions such as reducing the
total amount of proposed disturbed azea and reclaiming some of the existing disturbed area. Ultimately, the operator
chose to do just that by submitting and receiving approval for a technical revision to revise their mining and reclamation
plan to reduce the overall size of their disturbance and to reclaim some of the existing disturbance. Once the reclamation
work was completed, the operator requested and received approval for a reduction in the financial warranty.
The net result is that the current required financial warranty for the Alma Placer is $116,586.00. Of this amount
$56,117.00 is attributed to the gravel operation and $60,469.00 is attibuted to the placer operation. If you have not
already done so, please submit a new financial warranty in the amount of $116,586 within 60 days of receipt of this letter.
If you have any questions, please contact me.
Sincer ly, `
~Cnthony aldron
Environmental Protecticn Specialist
~l~,p

Office of Office of Colorado
Mined Land Reclamation Active and Inactive Mines Geological Survey