1997-09-10_REVISION - M1977247 (6)

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INTRODUCTION AND NARRATIVE FOR PERMIT AMENDMENT APPLICATION The Coaldale Gypsum Mine was originally permitted by the State of Colorado in 1977 as an operating surface mine. The mine workings had been active since the early 1900's, suppling raw gypsum to a stucco manufacturing plant in the Portland, Colorado area and later a cement plant. Wallboard manufacturing operations commenced in Florence in 1956 until the plant shutdown in 1990. The mine operation went into Temporary Cessation Status in August, 1990, with a bond in place at app. $]OOK. In late 1990, Domtar Gypsum, the mine owner/operator, petitioned the State of Colorado to approve an additional five year TC period. On October 16, 1995, the Mined Land Reclamation Board ordered immediate Closwe Status to take effect and ordered an immediate increase in bond to $SOOK. During 1995 and early 1996, Domtar Gypsum tendered reclamation contract work and approved aerial photo and topographic work in preparation of a Closure Plan to be submitted to the State for review and approval. During the second quarter of 1996, G-P Gypsum Corporation, a subsidiary ofGeorgia-Pacific Corporation, Atlanta, GA., pwchased all assets of Domtar Gypsum. The Closure Pfan was completed and submitted to the State Division of Minerals and Geology in July, 1996. After review of the Closure Plan, Division staff noted that an amendment to the mine permit was in order since substantial changes were projected in the reclamation plan as submitted in the closwe document vs. the original mine and reclamation plan. G-P Gypsum Corporation first response to the closed mine and board plant facility was to determine if the mine and plant could be economically restarted. A concerted and highly organized effort was made by G-P Gypsum to evaluate all aspects of environmental permitting, equipment needs, market considerations, and production costs which culminated in a complete business plan proposal submitted to the pazent company, Georgia Pacific, dwing the first quarter of 1997. It was not until the end of the second quarter of 1997 that the decision was made by the parent company to not restart Colorado operations and instead focus on a new mid-west facility to operate on flu gas process by-product gypsum. Meanwhile, other gypsum based business developments were seazched for that might allow for a smaller scale but active mining operation on the property as an alternative to complete closure as is the current Board Order. While this option remains a viable possibility for the first time since the mine and plant shut down in ] 990, a mine plan with definitive gypsum mining volumes can not be stated at this time. In consideration of this fact and the current board order, this permit amendment document will address the changes to the reclamation plan for permit #77-247, to reflect the specifics of the closure plan as submitted in 1996. Furthermore, G-P Gypsum Corporation has continued to actively reclaim disturbed lands and attain final reclamation status on highwall areas by tendering specific reclamation contracts in 1997, in active pursuit of final reclamation and closwe tasks as described in the closwe plan. G-P Gypsum will petition the Mined Land Reclamation Board to extend the Closwe Plan for an additional two years which would result in a five year period from present to complete the closure work necessary. This extension, while addressed in detail separate to this amendment, is necessary and reasonable on several points, including the transfer of ownership shortly after the Board Order took affect, the active pursuit of a return to active operations made by G-P Gypsum during 1996 and 1997, which unfortunately did not proceed, and the pro-active reclamation work and closure work that has been accomplished (more than 60% of the Affected Lands are under advanced revegetation) and that will be accomplished during the next three years without covering up gypsum ore with waste materials that will effectively put a major portion of the gypsum reserve out of the realm