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• iii ~ii~iiiiuiu iii ~ STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department ni uuwral Resources 131 J Sherman SL. Room .1 5 Or-over, Colorado HO203 Phone: (3011 H65-3561 fAX: Oli31 H32 H106 December l5, 1999 Mr Frank Butala Butala Construction Company PO Box 907 Salida CO 81201 DIVISION O F MINERALS GEOLOGY RECLAMATION MINING•SAFE iY Bill O,.~ens Coaernor Greg E bvulcher EAecuove Dhector Michael0 Long Divi5~On Direuor Re: Request for an Eight Month Extension of the Due Date to Submit an Additional Financial Warranty, Butala Pit, M-87-127 Dear Mr. Butala: The Division received your request to extend the due date for the submittal of additional financial warranty [o August 2l, 2000. The Division will agree to an extension of the due date. However, as noted below, the extension dates will vary but will not exceed 4'/z months. In addition, the Division will require the submittal of an interim bond. As we discussed at the December 2, 1999 meeting, you have two concerns. First, you believe the $51,130.00 increase in the financial warranty (from $5,000 to $56,130) is unrealistic. Second, you have a problem with the definition, and the importation, of to soil. The word topsoil came directly out of the approved permit where it states in the reclamation plan that "topsoil will be distributed 4 [0 6 inches in depth upon the affected side slopes and the regraded overburden areas." In addition, the approved mining plan stipulates that "new topsoil will be transported to the site and placed upon the regradedireshaped overburden sites at the time of reclamation." You are now saying that the "requirement should be a moisture retaining soil mixture that will sustain growth." Whatever the definition, the material will have to be imported from offsite because it is stipulated in the approved permit. And the importation cost is estimated to be $30,248.00. This is a major cost of your approved reclamation plan. The Division cannot change your permit. Only the permittee can revise the permit. As we discussed at the December 2, 1999 meeting, it appears you would like to revise the approved reclamation plan to include using "the fine soil-element existing at the permit area" blended with an amount of "moisture-retaining soil" which you would import to the site and mix in a 75% - 25%btend respectively (per your November 18, 1999 letters). In order to revise the permit, you must submit a technical revision pursuant to [he requirements of Rule 1.9. You, apparently, are aware of the need for a revision because you stated in your January 18, 1999 letter that "a technical revision will be submitted after an on site inspection..." The site was inspected September 29, 1499. To date, the Division has not received a technical revision. Remember, if you revise the permit the costs of the new reclamation plan must be funded with a financial