GENERAL53501

• Permit No: C1981038
• IBM Index Class Name: General Documents
• Doc Date: 5/12/1997
• Doc Name: BOWIE 1 MINE PN C-81-038
• From: DMG
• To: BOWIE RESOURCES LIMITED
• Permit Index Doc Type: GENERAL CORRESPONDENCE
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Depanmenl o(Nalural Resources
1313 Sherman 51.. Room 215
Denvcr, Colorado 80203
Phone: [phone]
FAX: [phone]
January 14, 1997
William Bear, Jr.
Bowie Resources Limited
P.O. Box 1488
Paonia, Colorado 81428
RE: Reclamation Cost Estimates for Removal of Coal Stockpiles
Deaz Mr. Beaz:
II~
DEPARTMENT OF
NATURAL
RESOURCES
Roy Romer
Governor
lames 5. Lochhead
Executive Director
Michael B. Long
Division Director
This letter is provided to update you on a Division policy regarding reclamation cost estimates
which will affect our estimate of the reclamation liability for the Bowie No. 1 Mine. During the
past four years, it has been Division policy to include an estimated cost for disposing of
stockpiled coal at mines and loadouts, including your mine. Based on a review of recent case
histories, the Division is rescinding this policy.
This policy was initially implemented as a result of problems with disposal of stockpiled coal
which were encountered at mine sites where the Division had become responsible for reclamation
following bond forfeitwe. Based on those experiences, and the potential for similar recurring
incidents, the Division began to include costs for disposal of coal stockpiles in reclamation cost
estimates when those estimates were reviewed during permit renewals and mid-term reviews.
The problems associated with disposal of sfockpiled coal encountered by the Division were
eventually resolved without expenditure of forfeited bond money. Additionally, several coal
mines in Colorado have ceased mining during the past four years, and no coal stockpiles were
left to be disposed of at any of those sites. In consideration of these two facts, [he inclusion of
removal of coal stockpiles in reclamation cost estimates no longer appears to be necessary.
In order to remove the coal stockpile disposal task from the cost estimate for your mine, you may
select one of the three options below.
1. Submit a technical revision proposing to adjust the reclamation cost estimate, pursuant to
Rule 3.02.2(5). Reduction of the required performance bond could be added to a
technical revision addressing other matters, or may be submitted as a separate revision.
2. During the next scheduled permit renewal or mid-term review the Division can notify you
[hat the required performance bond will be reduced to account for removal of any costs
associated with coal stockpile disposal.