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iii iiiiiiiiiiiiiiii <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparlmenl of Natural Resources <br />1313 Sherman 51., Room 215 Elk <br /> <br />Denver, Color, riu 80?03 II <br />~~ <br />I <br />Phone: U071 86f,-3567 II <br />FAX: 003) 83? 8106 <br /> DEPARTMENT OF <br /> NATURAL <br /> RESOURCES <br /> Rey Romer <br />October 8, 1996 Gnvernw <br /> lames 5. Ln~ hhmd <br /> EaPRilrve Di4•dor <br /> M1LCh,iel tl. Lonti <br />Mr. Jim Stover Dimsinn nfreaur <br />J.E. Stover & Associates <br />2768 Compass Dr. -Suite 101 <br />Grand Junction, Co. 81506 <br />Re: Coal Ridge No. 1 Mine (C-84-065) <br />Technical Revision No. 13 <br />Permit Renewal Issues <br />Dear Mr. Stover, <br />The DMG has reviewed your letter dated September 9, 1996. The following are the <br />Division's responses to NCIG's concerns regarding TR-13 and permit renewal issues. <br />Identification of Interests <br />1. The DMG is still waiting to hear from NCIG regarding the corporation's present status <br />with the Secretary of State. <br />Reclamation Cost Estimate <br />2. The Division acknowledges that the work specified in tasks 1-4, 12-15, and 23 of our cost <br />estimate have been accomplished. As noted in your September 9, 1996 letter, the primary <br />purpose of estimating reclamation liability is to assure that the bond held by the State is <br />adequate to cover the cost of any remaining reclamation work. However, a secondary goal <br />of the Division in estimating liability at reclaimed sites is to track the amount of liability <br />which has not been formally released by the Division. <br />When computing reclamation cost estimates, the Division typically includes all tasks for <br />which liability release has not yet been approved. We realize that our cost estimate for the <br />Coal Ridge Mine is higher than the cost of completing work which actually remains to be <br />done. However, by tracking the estimated liability in this manner, calculation of bond <br />amounts which may be released at Phase II and III of the bond release process is more <br />straightforward. <br />