1998-02-20_REVISION - M1977248 ‎(2)‎

• Permit No: M1977248
• IBM Index Class Name: Revision
• Doc Date: 2/20/1998
• Doc Name: SO Processing
• From: DMG
• To: DMG
• Type & Sequence: SO3
• Media Type: D
• Archive: No

D OFFICE

,~

During this last summer & fall, Telluride Mining Co. attempted to succeed to the permit, but the
SO was denied after they were not able to come up with the bond money. Gold Eagle Mtning,
Inc., has obtained the DOE lease for the site and has also posted a $22,000.00 Irrevocable Letter
of Credit with the DOE. The DOE has acknowledged to DMG in writing that Gold Eagle
Mining, loc. is the current valid DOE lease holder, and that the DOE financial warranty has been
accepted. The,DOE has also indicated that the DOE bond covers reclamation activities, and that
the DOE lease agreement requues that the leaseholder comply with all applicable statutes and
regulations, including those required by the DMG. Additional information has been provided to
the DMG indicating that the entire permit area for M-78-31 l is within the DOE lease azea.
STATE
n P.4/4
O~COLO O
OIYISION OF MINERALS AND GEOLOGY D
Department of Na[ural Resources E`N~/C~ O~~ ~~
1313 Sherman St., Room 215 PUpr IY~G~ +CC' Ir~~~~~
Denver, Colorado 90203 v` G I
Phone; (3031 866.3567 ALE
FA%: (307) A32A106 FILE. /~ COPY
~~+ ~ ~ / ~ DEPARTMENT OF
SITE; y~~Ore Q /~9r" 1 NATURAL
e RESOURCES
MEMO 9nY ~„~;
Governor
DATE: February 20, 1998 lames 5. lochhead
/ Ezec~uve Director
TO: Bazb Chiappone li+ Michael 9. Long
FROM: Tom Gillis ~Q Division Direcor
RE: Succession of Operator for Aawkeve Mine. Permit No. M-78-311
As you know, Gold Eagle Mining, loc. has applied for a Succession of Operator for the above,
referenced operation. DMG currently has a 55,000.00 Letter Of Credit from Perry Flanigan
of Ryan, Ltd., and a recent bond recalculation by DMG has verified that this amount is sufficient
to cover the cost of fatal reclamation of the site. Therefore, no bond increase will be necessary.
As a result of the information & verifications provided to the DMG by the DOE and the operator,
it appears that we can now accept the use of the $22,000.00 DOE Financial Warranty in lieu of a
$5,000.00 DMG Financial Warranty (except for the $100.00 cash bond minimum requ'ued by
DMG).
Please let me know how the Succession of Operator process is going. J should clarify that there
are two DMG permits, M-78-311...Aawkeye Mme & M-78-342...Ellison Mme, within the same
~ DOE lease tract (C-SR-13). Since the amount of financial warranty for both DMG permits
($S,000.OO...M-78-311 + $10,750.QO...M-78-342 = $15,750.00) is still less than the financi
warranty amount provided to the DOE (522,000.00 for C-SR-13 Lease Tract), the DOE bo ,can
be used in lieu of both of the DMG bonds.
If you need any additional information, please give me a call.
ltdg
m31 I mem l .tdg