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<br />J. E. STOVER & ASSOCIATES IIIIIIIIIIIIIIIIIII <br />2768 COMPASS DRIVE, SUITE 101 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (303) 245-4101, FAX 242-7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />NINE RECLAMATION CONSTRUCTION MANAGEMENT <br />November 19, 1992 '~ ,' <br />NOV 2 3 1992 <br />S. S. Shuey ~ , ,. - .., <br />Division of Minerals and Geology MINERALS tk GEULwr <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Re: Somerset Mining Company <br />Postmining Land Use Change <br />Permit C-81-022 <br />Dear Mr. Shuey: <br />The current reclamation plan for the Elk Creek Facilities will <br />restore the land to a postmining land use of undeveloped land. The <br />reclamation plan and approved postmining land use was developed by <br />U. S. Steel Corporation, the original Operator under the mining <br />permit. <br />Somerset views certain structures within the Elk Creek facilities <br />as valuable assets. The shop warehouse building and other <br />ancillary structures have commercial value with or without a mining <br />operation. The shop warehouse building supports the existing mine <br />operation by serving as a fabrication shop, equipment repair shop, <br />machine shop and supply warehouse. If the mine operation ceased to <br />exist, the shop warehouse building could be converted to an <br />industrial operation to provide similar services to other <br />companies. <br />Somerset plans to apply for a technical revision to the permit so <br />the assets located within the Elk Creek facilities area are not <br />destroyed after mining from the property ceases. In order to <br />accomplish this goal, the postmining land use for the Elk Creek <br />Facilities will be changed to industrial. <br />The shop warehouse building encompasses about 25,000 square feet <br />and has a value of about $250,000 ($10.00/SF). The cranes, <br />welders, supplies, work benches, tools, lathes, shelves, offices <br />and other items in the building probably add another $250,000 to <br />the value of the building. Considering the infrastructure, offices <br />and other ancillary buildings, this future industrial complex has <br />a value approaching $1,000,000 without considering land value. <br />The shop warehouse building and other ancillary structures have a <br />variety of possible uses after the mining operation ceases to <br />exist. Possible future uses of the facility are; 1) a fabrication <br />