2006-11-08_REVISION - M1988081

• Permit No: M1988081
• IBM Index Class Name: Revision
• Doc Date: 11/8/2006
• Doc Name: Response to F/W Increase
• From: DRMS esc
• To: Mr. Harry Covey
• Type & Sequence: SO3
• Media Type: D
• Archive: No

~~C, c ~r~ s/l~I~
STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
7373 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
November 8, 2006 d
Mr. Harry Covey ~/
479 County Road 83
Boulder, CO 80302
//
RE:Phil Sheridan Lode; Petmit No. M-1988-081 ;/ J
Comstock Mining & Refining.; SO-03 and Response to Financial Warranty Increase
Dear Mr. Covey,
COLORADO
DIVISION OF
RECLAMATION
MINING
-&-
SAF ETY
Bill Owens
Govemor
Russell George
Executive Director
Ronald W. Canany
Division Director
Natural Resource Trustee
The Division received your letter on November 7, 2006 requesting an appeal of the bond estimate performed as
a result of the October 2, 2006 inspection of the Phil Sheridan Lode. As a result of that inspection, the
Division did reduce the bond from $8,365.00 to $6,700.00 by reducing the area to reseed. Jn the inspection
report the Division listed a number of ways for the operator to further reduce the bond. These measures
include;
Instaliing a covered locking device over the shaft to prevent vandals from cutting the lock. Proof
of this installation must be documented to the Division prior to reducing the bond amount, and
Revising the reclamation plan to leave structures on site (the wood shed and the framing near the
shaft). The site is currently approved to be reclaimed to residential, so stmctures that conform to this
use (and constructed and built to County code) may remain on site. However, a revision to the petTtdt
must be filed to retain such structures. The revision must be filed by Comstock Mining & Refining or
another entity with the authorization to do so by Comstock Mining & Refining.
Please be awaze that the Division is required to estimate a cost based on the approved reclamation plan. The
Division understands your position, but the bond must reflect what has been approved by the Division. Once
the above mentioned items have been completed and submitted to the Division, the bond estimate maybe
further reduced.
In regazd to your request to credit the bond with the existing bond in the amount of $1,718.41, the Division is
not able fo apply the existing bond to the transfer of the permit unless Comstock Mining & Refning agrees to
transfer the money. The Division would require a notarized agreement between Comstock Mining & Refining
and Harry Covey agreeing that the bond money would now belong to Harry Covey. Or Comstock Mining and
Refining could agree to post the bond as a third party. Attached is the Third Party Form. Without the
agreement between Comstock Mining & Refining and yourself, the bond must be returned to the person or
entity that submitted the bond. You should also be awaze that funds were written off by US Bank to state
unclaimed properties. The Division is in the process of collecting the money from unclaimed properties.
If you have any further questions please contact me at [phone].
Sl e ly,
Erica S. rtisb
)/
Environmental Protectio
ca Cazl Mount; DRMS
Suzi Ericksen; DRMS
Rocky Connor; Comstock Mining & Refining
Office of Office of
Mined Land Reclamation Active and Inactive Mines