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r~ <br />III IIIIIIIIIIIIIIII <br />DIVISION OF MINERALS AND GEOLC .Y <br />Deparlmenl of Nawral Reaxucec <br />1411 Sherman 51 , Knom '_ 15 <br />Denver, CO 80'_03 <br />Phone: 130]1 866-556? <br />FAX: 1303) BJ? tl106 <br />December 1, 1993 <br />Mr. Robert Nondorf <br />State of Colorado <br />Division of Purchasing <br />225 E. 16th Ave., Suite 900 <br />Denver, CO 80205 <br />STATE OF COLORADO <br />OF'~~<. <br />~/-~04 <br />n ~O <br />:C~~R: <br />~ r8 )6 <br />Knv Komer <br />Governor <br />Nn ha el P Long <br />I rrci~ion Dveclor <br />RE: Hawk's Nest Coal Silo Reclamation Project: RN-GOAL-MINES-9 <br />Dear Mr. Nondorf: <br />Reclamation bids for the Hawk's Nest Coal Silo Reclamation Project <br />(RN-COAL-MINES-9) received by the State were significantly higher <br />than the funds allotted for the project. Reclamation work in <br />addition to the silo demolition remains to be completed at the <br />Hawk's Nest site. The Division has estimated that the cost of <br />completing the remaining work will be approximately $130,000. The <br />Division currently holds $378,563 of funds for Hawk's Nest <br />reclamation. The low bid for the silo demolition project was <br />$296,854. If this bid were accepted, insufficient funds would <br />remain to complete reclamation of the site. <br />It is in the interest of the State to complete the silo demolition <br />as soon as possible because the site has been abandoned for a <br />number of years and the structures show signs of settling unevenly. <br />There is a potential for a public safety hazard if the silos are <br />not demolished. The Division has also committed to the Rio Grande <br />Railroad and the adjacent West Elk mine that the project would be <br />completed as soon as possible. Therefore, I would like to request <br />that the Division of Purchasing agree to withhold awarding the bid <br />while the Division of Minerals and Geology negotiates with the <br />bidder. <br />Additional work needed on site includes the removal of an estimated <br />10,000 tons of coal material. To remove this coal material from <br />the Hawk's Nest Mine and dispose of the material in an approved <br />landfill will cost roughly $63,000 (hauling plus disposal Eee). <br />Tri-State Transmissi~ln 5 Generation, Western Fuel-Colorado <br />Corporation and P.ndrews of Honeywood Coal Company have <br />expressed an interest in removing this coal at little to no cost to <br />the Division. The operators would use this material in a local <br />power plant, thus reducing the hauling expense. <br />