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<br />Steve Bennett <br />June 13, 2000 <br />Page 3 <br /> <br />property of Pitkin Iron. BLM disputes this contention. IBLA <br />made no decision as to this disputed point, instead offering what <br />seems to be a middle ground, namely that Pitkin can dispose of <br />all stockpiles for qualified use sales. Pitkin Iron, on review <br />of the IBLA decision, has undertaken to sell material from the <br />three stockpiles for qualifying uses, these being described by <br />IBLA as "a showing that the stone in fact can be sold for a use <br />that gives the limestone special value." <br />The letter of May 17, 2000 quotes the IBLA decision as <br />standing for the proposition that BLM may preclude any mining <br />operations within the Community Pit boundaries for so long as the <br />Community Pit designation remains in place. This restriction <br />applies only to the mining of new material, not the removal of <br />the stockpiles. Indeed, the IBLA stated "We hold that appellants <br />may dispose of mineral material from any or all the stockpiles, <br />provided they can show to BLM's satisfaction that they can market <br />it for qualifying end uses." 198 IBLA at 378. <br />Moreover, it appears that the Community Pit designation has <br />terminated by its own terms. The IBLA decision states that BLM's <br />- purpose for establishing the community pit was "to secure a <br />supply source for the rock dust" in that "its marketability would <br />justify its classification as locatable under 30 U.S.C. X611 <br />(1994), the limestone would be subject to disposition under the <br />mining laws." 198 IBLA 374. IBLA's decision. quotes at length <br />from a memorandum of the District Manager to the State Director, <br />which said that the action was prompted by concern with the <br />State's pending disposal of the rock dust plant (posted as bond <br />to secure reclamation of another mining site). <br />"For the State to recover even a fraction of <br />the stated bond value for this property (S3 <br />million) it is essential that the olant be <br />marketed for its highest and best use - this <br />being as a rock dust plant in its current <br />location. For that to be the case the buyer <br />will need a secure source of suitable Duality <br />limestone in the immediate vicinity o_f the <br />oiant. The only such source is the Glenwood <br />Springs limestone quarry formerly operated by <br />Mid-Continent." <br />During the time the appeal was pending, the rock dust plant <br />was sold and dismantled. Through the approved bankruptcy plan, <br />the Division of Minerals and Geology was given a preferred <br />position as to the funding of reclamation from sale of other <br />