GENERAL37364 - Laserfiche WebLink

Home Browse Search

Memorandum Re: Kerr Historical overview November 28, 1994 Page 5 Sales in 1986 through 1989 dropped once again, with only 28,000 tons being sold in 1989. The low sales also prompted the announcement by the new owner of the rail line from Walden to Laramie to announce plans to abandon rail service (see the letter from Wyoming-Colorado Railroad to Kerr, dated April 19, 1989). During the 1987 through 1989 time period, Kerr was working on a revised mine plan for the northern extension of the mining activity. This work led to submittal of a permit amendment to the State of Colorado in 1989. The State began review of the permit amendment and by the spring of 1990, extensive discussions were occurring on a variety of issues. During this same period of time, Kerr was backfillinq the 720 Pit from the overburden stockpile that existed next to that pit. Faced with possible abandonment of the railroad (the only economic transportation option for Kerr) and the lack of any long- term contract, management of Kerr elected to withdraw the permit amendment and begin planning for reclamation of the existing open pits. In 1990, the backfillinq plan was revised to require placement of any additional overburden that would be produced from the northern end of Pit 1 to the southern end of Pit 1. The State renewed Kerr's permit in 1991 with the stipulation that iP mining were to be initiated north of the Pit 1 area, reclamation plans and bonding would be reviewed prior to initiation of any activity. However, if mining ware not initiated beyond Pit 1, the reclamation plan approved in the permit would be implemented. Kerr also was committed to continue to move material from the overburden stockpile near the 720 Pit at the rate of 300,000 cubic yards per year. In 1993, Kerr elected to expedite the approved backfillinq and reclamation plan. In accordance with permit specifications, the 720 Pit was backfilled with all available material from the overburden stockpile, and Pit 1 was recontoured. Kerr completed its work in January of 1994 and filed for Phase 1 bond release. During the bond release inspection, OSM personnel advised Kerr and the State that bond release would be denied because Kerr had not reclaimed Pit 1 to its approximate original contour. Energy Fuels acquired the Kerr Mine in 1977 with a view of tripling the production and sales from 250,000 tons to 750,000 tons. Kerr reached that goal in 1980 and was poised to continue that rate of production through 1989 and beyond. In 1981, the Mine's base contract was unexpectedly terminated and Kerr has never recovered.