2005-04-28_REVISION - M1985026

• Permit No: M1985026
• IBM Index Class Name: Revision
• Doc Date: 4/28/2005
• Doc Name: FW Increase
• From: DMG
• To: Coulson Excavating Company Inc
• Type & Sequence: SI1
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1373 Sherman S[., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
Apri128, 2005
Mr. Richard Coulson
Coulson Excavating Co., Inc.
3609 N. County Road 13
Loveland, CO 80538
RE: Challenger; Permit No. M-1985-026
Coulson Excavating Company, Inc.; Financial Warranty Increase (SI-O1)
Dear Mr. Coulson,
COLORADO
DIVISION O F
MI N SRALS
GEOLOGY
RECIAMATION•MINING
SAFETT•SCIENCE
Bill Owens
Governor
Russell George
Ezecu[ive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
On June 27, 2003 and Apri128, 2005, the Division of Minerals and Geology conducted inspections of [he
Challenger Pit, Permit No. M-1985-026. It was noted during the inspection that groundwater ponds were
constructed on site. Correspondence received from the Office of the State Engineer ("OSE") states [ha[ Coulson
Excavating does not have a Substitute Water Supply Plan in place or water court decree approve by the OSE. The
Division notified the operator of this fact on June 27, 2003 and again on January 28, 2004, and requested a copy of
the approved Substitute Supply Plan or Augmentation Plan for the Challenger Pit by March 26, 2004. The operator
has not responded to the Division regarding this issue.
As you are aware, the Division is required to hold a financial warranty to ensure the reclamation plan can be
achieved. If Coulson Excavating does not have the appropriate water rights in place, the reclamation plan cannot
be achieved and an alternate reclamation plan is required. Without such plans, the Division is required to adjust the
financial warranty to backfill the gravel pits two feet above the maximum groundwater elevation.
According to Rule 4.2.1(1) and (2), the Division may review a financial warranty at any time [o determine if the
amount is sufficient to perform reclamation. The Division recalculated the bond to backfill 17 acres of the gavel
pit two feet above the maximum groundwater elevation. The result of the recalculation indicates that the site is
currently underbonded. This letter is to inform you that your financial warranty will need to be revised from its
current amount of $20,241.00 to $2,519.500.00 within 60 days of receipt of this letter. A copy of calculations used
to determine this cost is attached for your review. The operator has four options regarding the amount of required
bond;
1. submit additional financial warranty in the amount of $2,499,259.00
2. perform some reclamation on the site to reduce the reclamation liability,
3. provide the Division with a copy of an approved Substitute Supply Plan or Augmentation Plan, or
4. revise the reclamation plan to prevent groundwater from entering the pit.
One of the four options must be completed by July 5, 2005. Failure to do so maybe considered a violation of the
Constmction Material Rules and Regulations. If you have any questions about this process or how the bond was
calculated, please contact me at [phone].
S' c reRly,
a 3'Gy' '"-_
Environmental Protection Speci 'st
cc: Carl Mount; Bazb Chiappone; DMG
Joanna Williams; OSE
Enclosure(s); DMG Reclamation Cost Estimate
Cert~"~~~ail # 7000 1670 0001 3655 9204 Office of Colorado
Mined Land Reclamation Active and Inactive Mines Geological Survey