GENERAL34392

• Permit No: C1981021
• IBM Index Class Name: General Documents
• Doc Date: 7/2/1996
• Doc Name: BOURG MINE PROPERTY COLO DMG PN C-81-021
• From: DMG
• To: HOLSINGER AND CO
• Permit Index Doc Type: GENERAL CORRESPONDENCE
• Media Type: D
• Archive: No

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DIVISION OF MINERALS AND GEOLOGY
Dcpanmem of Natural Resources
131 3 Sherman St., Room 215
Denver, Colorario 80203
Phone: [phone]
FAX: [phone]h
July 2, 1996
Ms. Darleen West
Holsinger and Company
P.O. Box 37
Walden, CO 80480
STATE OF COLORADO
II~~~
DEPARTMENT OF
NATURAL
RESOURCES
Roy Romer
Governor
lames 5 Lochhead
Exec W rve Duecror
Michael 8. Long
Division Dneclor
Re: Bourg Mine Property, Colorado Division of Minerals and Geology Permit Number
C-81-021.
Dear Ms. West:
As we discussed today over the telephone, you requested clarification of the reclamation
liability remaining on the Bourg Mine property; Township 9 North, Range 78 West, Sf/zSEye
Section 7, and N~/zNEf/a Section 18. Coal mining operations in Colorado occurring after
August 1, 1977, are subject to the Colorado Surface Coal Mining Reclamation Act (34-33-
101 ET SEQ. C.R.S. 1973 as amended) and the Regulations of the Colorado Mined Land
Reclamation Board for Coal Mining. Copies of the Act and Regulations are available from
the Division of Minerals and Geology.
In brief when a coal mining operation is permitted by the State of Colorado Division of
Minerals and Geology, the permittee is required to post a reclamation bond. This bond
needs to be sufficient to cover the projected costs to reclaim the disturbances caused by the
coal mining operation to the standards set forth in the statutes. The bond is payable to the
State of Colorado and retained by the Division of Minerals and Geology until the Division
finds the permittee has successfully reclaimed the disturbance. Should the permittee fail to
adequately reclaim the site, then the Division would forfeit the bond and complete the
reclamation using independent contractors.
The minimum period of liability for retention of the reclamation bond in the state of
Colorado is ten (10) years following the last year of seeding, fertilizing, irrigation or other
work, (Rule 3.02.3(2)), with the exception of areas approved for industrial, commercial or
residential post-mining land-use.
A permittee may request release of portions of his bond prior to the ten year liability period
based upon successful completion of specific reclamation requirements, (Rule 3.03.1(2)),
according to the following schedule:
The maximum amount under performance bonds applicable to an increment or a
permit area which may be released shall be limited to the following schedule: