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~~ • <br /> <br />STATE • <br /> <br />OF iii iiiiiuiniiiiii~ <br />999 <br />COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparlmenl of NaWral Resources <br />1313 Sherman 51.. Room 215 r <br /> <br />Denver, Colorado 80'_07 Il <br />~~~ <br /> <br />Phone: 1303) 8663567 I <br />FAX: (3031 832-8106 <br /> DEPARTMENT OF <br /> NATURAL <br />DATE: July 20, 1994 RESOURCES <br />TO: Tony Waldron Rov Romer <br /> <br />/ <br />~ Governor <br /> <br />FROM: Larry Routten / <br />` lames S Lochhead <br />Exec Wive Direclor <br /> Michael B. Long <br />RE: Eagle Mine TR-24 (C-81-044) Diviwon DireUOr <br />Subsidence Control Plan for the Amoco Oil Pipeline <br />I have reviewed the CEC adequacy responses, our regulations, the <br />federal regulations, the federal register, and spoken with a number <br />of OSM and State representatives around the country to determine <br />whether my earlier indication regarding reclamation liability for <br />the pipeline corridor was valid. Based on my review, I still <br />recommend that the TR be approved as it is now submitted. That <br />is, CEC will assume reclamation bond liability for the spill <br />control/water diversion structures. Pipeline corridor disturbance <br />will be deemed subsidence control work. No long term bond <br />liability will be associated with the disturbance created by <br />excavation of the pipeline. <br />The rationale for this decision is based on three factors: <br />1. interpretation of our regulations, <br />2. existing regulatory authority of other government agencies <br />over oil and gas pipelines and, <br />3. existing "policy" and court rulings in regard to liability <br />for subsidence damage. <br />To summarize, <br />1. Interpretation of our regulations <br />Rule 2.05.6(6)(f) requires the operator to submit a subsidence <br />control plan when material damage to structures is projected. The <br />plan should include measures to be taken to prevent damage to <br />structures or lessening of the value or reasonably foreseeable use <br />of the land. Rule 4.20.1 also indicates that the operator is <br />ultimately responsible for maintaining the value and reasonably <br />foreseeable use of land affected by subsidence. <br />CEC has submitted an acceptable subsidence control plan. The plan <br />includes an agreement between CEC and Amoco which addresses <br />potential damages and measures to prevent and/or mitigate those <br />damages. The agreement clearly satisfies the regulatory <br />requirement for a subsidence control plan in regard to material <br />damage to structures. <br />