2002-02-22_REVISION - M1986061

• Permit No: M1986061
• IBM Index Class Name: Revision
• Doc Date: 2/22/2002
• Doc Name: Notice of Bond Increase
• From: DMG
• To: Patrick L. Cugnini
• Type & Sequence: SI1
• Media Type: D
• Archive: No

Sy-~ ~ ~
STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
February 22, 2002
Patrick Cugnini
677 3rd Avenue
DranoC081~01
~~~~~ ~~
FEe p 8 ~
Division al~iaerels end 6eolo6P
QEtJ'VryECF~ ~~
~L°C«C DIVISION OE
ff~~11~~ C MIPlERALS
GEOLOGY
RECLAMATION
MINING•SA FETY
Bill Owens
Governor
Greg E. Walther
Executive Director
Michael B. Long
n g J / Division Director
Re: Cugnini Pit, Permit No. M-1986-061, Koutine Bond Recalcu]ation, Notice of Bond Increase!
Dear Mr. Cugnini,
The Division has the responsibility of periodically reviewing the bond amounts for permitted sites to ensure that
sufficient bond is posted. The existing bond amount is $151,432, which was the amount set in late-1993, at the
time of the conversion to a 112 permit. This routine bond review which was scheduled for this permit has been
completed.
The reclamation costs were estimated, based on the currently-approved mining and reclamation plans, with
consideration given for the small portions of the 48-acre affected area which have some limited reclamation already
performed. The enclosed packet shows the detailed figures of all of the required tasks of the final reclamation. The
contents of the packet are arranged as follows: a summary page showing direct costs of all tasks plus indirect costs,
then detailed cost sheets for each individual task, and finally the equipment cost and production sheets. You will
see that the first page contains the new estimated total reclamation cost figure of $177,293, which indicates an
increase of $25,861 over the existing bond.
The new estimate follows much the same format as the one performed in 1993. I will briefly explain some of the
assumptions and basis for the new figures below. Your existing mining and reclamation plans are approved to
allow mining disturbance to the entire 48-acre affected area, with minimal required concurrent reclamation. The
general reclamation scenario is that at the conclusion of mining, highwalls have been left at approximately 2: I
gradients, with a rough floor throughout, some mining-related debris onsite to remove or dispose, earthen structures
to remove and/or install for the final surface configuration, topsoil to haul from the stockpiles and spread to a
uniform minimum depth, and revegetation to establish on slopes and level areas.
The total affected area is 48 acres, though not all areas are yet disturbed. When fully mined there will be about 43
acres of Icvel floor and 5 acres of sloped areas. All areas will require finish grading, topsoiling and revegetation.
In this estimate I allowed "credit" for about 3 acres which have been finish graded and topsoiled in the north end of
Phase 1.
Revegetation was divided into two scenarios, according to the details of your approved plan. Level areas will be
ripped, disced, and drill seeded with the approved mix of grasses and clover. Woody shrub seeds are also part of
the revegetation species approved in the plan. The 5 acres of sloped areas, being approved for gradients no steeper
than 2:1, will be broadcast seeded with all seed types mentioned above, plus have seedling trees planted. There is
no revegetation carried out yet, so costs apply to all 48 acres. It is hoped that noxious weed control is being
actively carried out, and will become effective in the near future. No costs were included for weed control, but may