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Construction Materials, and the Rules and Regulations which enforce <br />the Act, the Board may reject Cooley Sand & Gravel's bond on the <br />grounds that: <br />a) According to Section 34-32.5-117(3j(c)(I) of the <br />Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, the Board may reject a financial <br />warranty if it is determined that "the value of such <br />warranty is dependent upon the success, profitability, or <br />continued operation of the mine". All estimates of the <br />current value of the Deed of Trust have assumed a mining <br />operation with a lifetime of fifteen years, minimum. <br />b) According to Section 34-32.5-117(3)(c)(II) of the <br />Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, the Board may reject a financial <br />warranty if it is determined that "the financial warranty <br />offered can not reasonably be converted to cash within <br />one hundred and eighty (180) days." The form of the Deed <br />of Trust does not insure that the value of the land can <br />be converted to cash within 180 days in the event of <br />bankruptcy proceedings. <br />Option ,~ (3) The Board may accept a separate interim bond to cover <br />the cost of site upkeep and security in the event of a company <br />bankruptcy proceeding, while DMG would search for a buyer for the <br />site, <br />In the meeting on December 4, 1995 between DMG and CAMAS, option <br />number 3 was explored in detail. The possibility of Cooley Sand & <br />Gravel posting a cash, cash equivalent, or more easily convertible <br />to cash bond for 5-10$ of the value of the full reclamation bond <br />was suggested as an alternative to outright rejection of the Deed <br />of Trust. If the Board chooses to go with option number 3, DMG <br />would prefer that a bond amount closer to l0$ than to 5$ be posted <br />to cover the site maintenance costs at Morrison Quarry, should <br />revocation of permit #M-73-021 (or other permits covered by this <br />bond) become necessary at some point in the future. <br />The Staff recommends that the <br />from the Operator to provide <br />while a buyer for the land is <br />Board accept a separate interim bond <br />for maintenance costs of the site <br />sought. <br />/CLK <br />