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~ iiiiiiiiiiiiiiiiiii <br />~S~F,T:7 pp~ <br />`7 F <br />c Z~. sc <br />~ ! 3- <br />~~~~ <br />U.S. Department of Energy <br />Grand Junction Office <br />2597 B 3/4 Road <br />Grand Junction, CO 81503 <br />FEB 1 7 1998 <br />Mr. Tom Gillis <br />Colorado Department of Natural Resources <br />Division of Minerals and Geology <br />484 Turner Drive <br />Building F, Suite 101 <br />Durango, CO 81301 <br /> <br />DENVErt ~~t=1CE <br />PUBLlC Fi~E CpPY <br />FILE: M-~8-31/ <br />aITE: Ha~rv~e~~_ <br />Received <br />FGQ 1 =r 'pQ~' <br />Durana~ f iel;i G<t~ce <br />Division of L!ineral; C~ Gco!ogy <br />Subject: Ne~v Leaseholder for DOE Lease Tracts C-JD-S, C-SR-13, and C-SR-15 <br />Dear Mr. Gillis: <br />This is in response to your letters to Ms. Dorothy Blake and Mr. Joe Baldwin, dated <br />February 5, 1998, concerning Colorado Division of Minerals and Geology (DMG) Permits <br />No. M-77-248 (C-JD-~ Mine) and M-78-342 (Ellison Mine, C-SR-13), respectively. <br />Please be advised that all rights, title, and interest in the subject lease tracts, at w~hiclt the two <br />referenced permits are located, have been recently assigned from Telluride Mining Company, <br />Inc., to Gold Eagle Mining, Inc. (GEMI). This assigmnent was approved by the U.S. Department <br />of Energy (DOE) on February 6, 1998. These assignments also transferred all reclatnatiott <br />liabilities associated with the tluee lease tracts to GEMI. GEMI, as part of the assigmttent, <br />provided DOE with an irrevocable letter of credit for $80,000 (aggregate sum) to cover the <br />reclamation liabilities that exist on the tluee lease tracts ($47,000 for C-JD-S, $22,000 for <br />C-SR-13, and $11,000 for C-SR-15). <br />DOE requires a single surety (performance bond, letter of credit, etc.) per lease tract. This surety <br />is all encompassing and covers the reclamation of all enviromnental disturbances existing on the <br />lease tract as a result of the leaseholder's (or prior leaseholders) mining and exploration <br />activities. Each lease agreement specifies the amount of surety required for that particular lease <br />tract. This amount can increase to cover new or expanded operations, or decrease as operations <br />cease and sites are reclaimed. Each lease agreement also requires the leaseholder to comply with <br />all applicable statutes a~td regulations, including those required by Colorado DMG. <br />The irrevocable letter of credit provided by GEMI will be held by DOE until it is either replaced <br />with another sureq~ of equal value, or the reclamation activities covered by the surety are <br />performed to the satisfaction of all applicable federal and state agencies. <br />On the basis of the aforementioned lease assig~mients and DOE's receipt of GEMI's irrevocable <br />letter of credit, DOE is in the process of releasing all previous leaseholders and other entities <br />