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<br />PARTIAL SETTLEMENT PROPOSAL
<br />Between
<br />USDA Forest Service and Telluride Gravel, Inc. and Kirk Alexander
<br />By letter dated October 5, 1994, District Ranger Richard Cook transmiCted
<br />Bills for Collection to Pete Ballode of Telluride Gravel, Inc. and Kirk A.
<br />Alexander in the amount of $563,190.00. The letter states that damages in the
<br />amount of $563,190.00 occurred through a period of 1984 to 1989 as a result of
<br />unauthorized occupancy and removal of gravel from about 7 acres of National
<br />Forest System land. The letter further specified the damages to be
<br />categorized as follows:
<br />Royalty Loss - $101,450.00,
<br />Land Damage Value- $16,000.00, and
<br />Stream Rehabilitation- $445,470.00
<br />By letter dated March 27, 1995, Telluride Gravel, Inc, challenged the Royalty
<br />Loss determination and provided their own analysis as to actual volumes of
<br />gravel removed, royalties paid, and method of calculation of royalties lost by
<br />the United States. As a result of information contained in the March 27, 1995
<br />letter that was unavailable to the Forest Service on October 5, 1994, the
<br />Forest Service determined that its original analysis of Royalty Loss, as
<br />detailed in Ranger Cook's October 5, 1994, letter and the June 16, 1994
<br />analysis prepared by Geologist John S. Dersch, was flawed. The Forest Service
<br />obtained a new analysis of volume of gravel removed from the site from Kenneth
<br />Scott Thompson on April 26, 1995.
<br />On May 5, 1945, Kirk Alexander, representatives of Telluride Gravel, Inc., and
<br />Forest Service personnel met in an effort to seek resolution of the issues
<br />related to the value of Royalties lost by the United States as a result of the
<br />unauthorized occupancy. Those present at the meeting were:
<br />Pete Ballode, David Ballode, and Gary Bennett representing Telluride
<br />Gravel, Inc.,
<br />Kirk Alexander representing himself, and
<br />Richard Cook and Paul Zimmerman, representing the ForesC Service.
<br />Since a final Rehabilitation Plan for the San Miguel River is not expected
<br />until the end of May, efforts in this meeting to reach agreement on damages
<br />due the United States were confined to Royalty Loss and Land Value Damage.
<br />The following agreement was reached subject to approval by the Department of
<br />Justice:
<br />1. The Value of royalties lost by the United States, and owed by
<br />Telluride Gravel, Inc. and/or Kirk Alexander, is $40,500.00. The form of
<br />payment, i.e. cash, land, or other value to be received by the United
<br />States, was not discussed.
<br />2. Telluride Gravel, Inc. agrees to performing rehabilitaCio~i work on the
<br />7 acres of NFS land in lieu of payment of $16,000 in land value damages.
<br />Rehabilitation work will be directed by District Ranger Cook, and in
<br />general will include placement of material, grading, and plantings, all to
<br />be specified in an operating plan.
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