REV98677

• Permit No: C1981044
• IBM Index Class Name: Revision
• Doc Date: 7/20/1994
• Doc Name: EAGLE MINE TR 24 C-81-044 SUBSIDENCE CONTROL PLAN FOR THE AMOCO OIL PIPELINE
• From: DMG
• To: TONY WALDRON
• Type & Sequence: TR24
• Media Type: D
• Archive: No

~~ •

STATE •

OF iii iiiiiuiniiiiii~
999
COLORADO
DIVISION OF MINERALS AND GEOLOGY
Deparlmenl of NaWral Resources
1313 Sherman 51.. Room 215 r

Denver, Colorado 80'_07 Il
~~~

Phone: [phone] I
FAX: [phone]
DEPARTMENT OF
NATURAL
DATE: July 20, 1994 RESOURCES
TO: Tony Waldron Rov Romer

/
~ Governor

FROM: Larry Routten /
` lames S Lochhead
Exec Wive Direclor
Michael B. Long
RE: Eagle Mine TR-24 (C-81-044) Diviwon DireUOr
Subsidence Control Plan for the Amoco Oil Pipeline
I have reviewed the CEC adequacy responses, our regulations, the
federal regulations, the federal register, and spoken with a number
of OSM and State representatives around the country to determine
whether my earlier indication regarding reclamation liability for
the pipeline corridor was valid. Based on my review, I still
recommend that the TR be approved as it is now submitted. That
is, CEC will assume reclamation bond liability for the spill
control/water diversion structures. Pipeline corridor disturbance
will be deemed subsidence control work. No long term bond
liability will be associated with the disturbance created by
excavation of the pipeline.
The rationale for this decision is based on three factors:
1. interpretation of our regulations,
2. existing regulatory authority of other government agencies
over oil and gas pipelines and,
3. existing "policy" and court rulings in regard to liability
for subsidence damage.
To summarize,
1. Interpretation of our regulations
Rule 2.05.6(6)(f) requires the operator to submit a subsidence
control plan when material damage to structures is projected. The
plan should include measures to be taken to prevent damage to
structures or lessening of the value or reasonably foreseeable use
of the land. Rule 4.20.1 also indicates that the operator is
ultimately responsible for maintaining the value and reasonably
foreseeable use of land affected by subsidence.
CEC has submitted an acceptable subsidence control plan. The plan
includes an agreement between CEC and Amoco which addresses
potential damages and measures to prevent and/or mitigate those
damages. The agreement clearly satisfies the regulatory
requirement for a subsidence control plan in regard to material
damage to structures.