GENERAL47006

• Permit No: C1981037
• IBM Index Class Name: General Documents
• Doc Date: 12/20/1994
• Doc Name: GEC EAST PIT PROJECT RN MINES 322 PN C-84-067
• From: DMG
• To: COLO WEST LEASING
• Permit Index Doc Type: GENERAL CORRESPONDENCE
• Media Type: D
• Archive: No

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• III IIIIIIIIIIIII III •
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STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Depanment of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
December 20, 1994
Mr. Preston Mease
Colorado West Leasing
241 31 3/10 Road
Grand Junction, Colorado 81503
RE: GEC/East Pit Project
RN-MINES-322
Permit Number C-84-067
Dear Mr. Mease:
~w.'..
~~~~~
DEPARTMENT OF
NATURAL
RESOURCES
Roy Romer
Governor
dames 5. Lochhead
EKKUiive Director
Michael e. Long
Division Director
You spoke with Dave Bucknam on December 15, 1994 by telephone questioning the
Division's authority to withhold retainage funds from Purchase Order Contract Number
C-79064.
Number 9. WORK PROGRESS, fourth paragraph, of the General Conditions of the
contract states that the OWNER may "dismiss the CONTRACTOR and complete the work,
and may deduct the cost of so doing from any unpaid balance of the contract price due or
to become due the CONTRACTOR," This section of the General Condition is found on
page 5 of the GENERAL BID SPECIFICAT/ONS book.
There were several items on the GEC/East Pit Project that were not completed according
to the terms of the contract, including: B horizon growth medium was not stripped from the
south end of the East Pit prior to backfilling; the Chen's Hill Ditch was•not V-shaped, there
is not sufficient riprap on the bottom of the ditch and the ditch does not drain properly.
The $25,995.00 not approved from Colorado West Leasing's invoices may not be enough to
cover the cost of correcting the defects in the work.
Number 9. WORK PROGRESS, fourth paragraph, also requires that the OWNER give
seven days written notice of dismissal to the CONTRACTOR and his surety. At this time
the Division has not formally dismissed Colorado West Leasing or sent notice to the surety
for the following reasons:
I} The Division has hoped to settle claims from Colorado West Leasing through
correspondence throughout the summer, a meeting in August, a settlement
offer from David Bucknam dated October 7, 1994 and a settlement offered by
Sandra Brown dated December 13, 1994. Through these negotiations and