GENERAL36405

• Permit No: C1981041
• IBM Index Class Name: General Documents
• Doc Date: 11/29/1996
• Doc Name: Letter of Reclamation
• From: DMG
• To: POWDER MOUNTAIN RANCH
• Permit Index Doc Type: PUBLIC CORRESPONDENCE
• Media Type: D
• Archive: No

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999
STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman Sl., Roam 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
November 29, 1996
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DEPARTMENT OF
NATURAL
RESOURCES
Mr. Robert L. Orr Roy Ramer
Governor
Managing Partner lames 5. Lochhead
Powder Mountain Ranch ERecuYve Director
500 Patterson Road Michael s. Eong
Grand Junction, Colorado 81606 Div is ion Director
RE: Roadside Mine (C-041-81)
Dear Mr. Orr:
This letter is in response to your letter dated November 15, 1996.
In that letter, and in our earlier phone conversation, you
expressed certain concerns related to subsidence effects and future
liability with respect to surface lands you own within Powderhorn
Coal Company's (PCC) Roadside Mine permit area. You brought up
several concerns in your letter, and I will try to address each of
them.
First, PCC officials have indicated to us that they do not
anticipate imminent mine closure and initiation of final
reclamation. They have indicated an intent to reduce coal
production significantly, with all production to be shifted to the
north portals. I would assume that the wash plant, offices, and
associated facilities in the south portals area would continue to
be utilized. In any case, if final reclamation is initiated on any
of the currently operational facility areas, final bond release
could not occur for a minimum of 10 years following completion of
reclamation. Prior to final bond release, up to 60$ of the
applicable bond can be released once facilities removal and
backfilling and grading have been completed in accordance with the
approved plan, and an additional 15$ of the bond can be released
upon replacement of topsoil, and establishment of a stabilizing
vegetation cover. As a surface landowner, you would be notified by
PCC of any partial or final bond release application filed by the
company.
Second, your letter mentions previous water loss from subsidence
that has occurred on your property. I have enclosed applicable
sections from our regulations concerning subsidence surface owner
protection and buffer zones, as well as a two page summary of
potential subsidence impacts and relevant state laws and
regulations. "Renewable resource lands" referenced in Rule 4.20.3
(2)(a), would include irrigated cropland or pastureland and
appurtenant structures, such as irrigation ditches.