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III IIIIIIIIIIIIIIII <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Phone: 1303) 866.3567 <br />FAX:13031832-8106 <br />January 20, 1994 <br />Mr. Robert Nondorf <br />State of Colorado <br />Division of Purchasing <br />225 E. 16th Ave., Suite 900 <br />Denver, CO 80205 <br />RE: Hawk's Neet Coal Silo Demolition Project; RN-COAL-MINES-9 <br />Dear Mr. Nondorf, <br />OF ~~ <br />~~~ <br />N` ~ <br />.~. <br />~B Tb ~ <br />Roy Romer <br />Governor <br />Michael B. long <br />Division Direclar <br />The Division of Minerals and Geology is anticipating starting the Hawke Neat <br />Coal Silo Demolition Project (RN-GOAL-MINES-9~ in early February. Due to various <br />liability issues with the Rio Grand Railroad and Hountain Coal Company, the bid <br />price was non-negotiable with the contractor, Miners Inc. <br />The Division currently holds $378,563 to reclaim the Hawk's Neet Mine. The low <br />bid for the silo demolition project was $296,854. The remaining work at the <br />Hawk's Neet mine includes removing and disposing coal refuse in a designated <br />landfill, and sealing and plugging several degas monitoring wells. The original <br />estimate to reclaim the remainder of the mine totaled $130,000. Over the past <br />month, the Division has researched into other methods to reclaim the site. <br />The Division believes a cheaper method to dispose of the coal material is to bury <br />the material on Bite, with four feet of overburden. This would reduce the coat <br />from almost $70,000 to $30,000. This method ie a common way coal and refuse <br />material is disposed of on coal mines and is in accordance with the Colorado <br />Surface Coal Mining Reclamation Act. Further research revealed that the degas <br />wells permitted at the Hawk's Neet Mine do not intersect an aquifer. This <br />information was gathered from the old Hawk's Nest Permit and conditions at the <br />adjacent Somerset Mine. The drill cuttings will be raked in the de-gas wells and <br />sealed at the surface with a cement plug. This sealing method is also approved <br />in the Colorado Surface Coal Mining Reclamation Act. <br />With the above mentioned changes, the reclamation estimate for the remainder of <br />the work at the Hawk's Nest Mine totals $82,000. The Division believes there <br />will be enough money available to demolish the coal silos and reclaim the mine <br />site in accordance with the Regulations for Coal Mining. In light of the revised <br />reclamation plan, the Division is no longer negotiating with Miners Inc. <br />If you have any questions or need additional information, please do not hesitate <br />to call. <br />Sincerely, <br />Erica S. Crosby <br />Project Manager <br />cc: Larry Routten <br />m:\coal\esc\hawk\940120 <br />