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~ II I IIIIIIIIIIIIIIII ~ STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmenl of Natural Resources 131 7 Sherman St., Room ? 15 `y Denver, Coloradu 80203 I ~ Phone: 13031 866-3 567 II FA% 1303) 832-8106 DEPARTMENT OF NATURAL RESOURCE September 3, 1996 Roy Romer Governor lames S. Lochhead Executive Director Mr. Stephen B. Johnson Michael B. Long Bendelow & Darling, P.C. Dlvnion Dnecmr P.O. Box 726 Telluride, CO 81435 RE: Mined Land Reclamation Board Discussion Item -August 29, 1996 Board Meeting, File No.s M-88-037 and M-81-154 Dear Mr. Stephen B. Johnson: The operator of the United/Norwood Pit places stockpiles of product materials within the boundaries of the adjacent San Miguel County Norwood Pit. This is done under a lease agreement involving the use of a 4 acre area. Your client, Ms. Abby Altshuler, and others object to the not including [his 4 acres in United Companies of Mesa County's pending permit amendment application. As you know, the Division was unclear whether this is an appropriate activity so we scheduled the issue for a Discussion Item before the Colorado Mined Land Reclamation Board, during their August 29, 1996 meeting. The Division has allowed this type of activity where both permittees were bonded for the reclamation of their mining disturbances. In this case, San Miguel County is not required to maintain a reclamation bond, only a Performance Warranty, and the Division was concerned that United Companies may be gaining some type of unfair advantage in bonding or permitting. The Board decided that the activity is appropriate under the Mined Land Reclamation Act and the Rules and Regulations. Your client has requested that if the Division does not require the applicant to include the 4 acres within United Companies' proposed amendment that the Division consider her concern a formal complaint with respect to the failure of the adjoining petmittee, San Miguel County, to reclaim the area in which United Companies materials are currently stockpiled. I observed this activity during a June 17, 1996 pre-operation inspection of the permit and proposed amendment areas. [t is the Division's opinion that since the county's permit does not include a phased mining and reclamation plan San Miguel County is not required to reclaim their permit area until they have completed mining activities and as you know the Board considers the stockpiling to be an appropriate mining activity.