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iii iiiiiiiiuiii iii <br />999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparimenl of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Cniorado 80:03 <br />Phone UO]) 866-3567 <br />FAS. 1303 93?-810" <br />5une 14,°2001 <br />Mr. Mark Wayment <br />Lodestar Energy, Inc. <br />HC 35, P.O. Box 370 <br />Helper, Utah 84526 <br />HE: Status of Outstanding Issues <br />McClane Canyon Mine (C-1981-004) <br />Munger Canyon Mine (C-1981-020) <br />Dear Mr. Wayment: <br />~~ <br />DIVISION OI <br />MINERALS <br />G EOLOG'r <br />RECLAMATION <br />MINING•SAFETI <br />tlill Owens <br />Grrvernor <br />Greg E.'oValcher <br />E~ecwwe Director <br />mrthael B. long <br />D~v{s~on Direuor <br />I spoke to you on the phone yesterday, and said I would follow up with a letter. We are concemed with <br />certain outstanding permit review matters for the McClane and Munger permits, and we are also concemed <br />with how the Lodestar bankruptcy filing will impact the ability of Lodestar to maintain compliance with <br />permitting, bonding, and reclamation requirements of the regulations. <br />Specific issues of concern at this time for McClane center on the permit renewal (current permit expires <br />July 6, 2001). Our preliminary adequacy review letter was sent to LEI on March 14, 2001, with a request <br />that responses be submitted to us within 60 days. We have no[ yet received a response. <br />Associated with the renewal review, we sent an amended reclamation cost estimate to LEI on May 18, and <br />requested that additional bond of $79,026.00 as indicated by the amended estimate be provided to the <br />Division within 30 days of receipt of the letter. We are concemed as [o how the bankruptcy filing will <br />affect [he ability of LEl to provide the additional bond. <br />The Munger permitting issue [hat is outstanding pertains to Technical Revision 13, which addressed issues <br />raised during [he most recent mid-term permit review. A preliminary adequacy review letter was sent to <br />LEI on January 10, 2001, and we have not yet received a response. <br />Please respond to this letter by June I8, 2001. In the response, please address the status of each of the <br />outstanding issues and commit to providing complete and adequate responses by June 22, 2001. In <br />addition, please address how the bankruptcy filing will affect LEI's ability to operate in compliance with <br />DMG permitting, bonding, and reclamation requirements. <br />Please contact me if you have any questions, at (970)242-5025. My FAX number is (970)242-1516. <br />Sincerely, <br />Dan T. Mathews <br />Environmental Protection Specialist <br />cc: David Berry, DMG Denver <br />Sandy Brown, DIv1G Denver <br />