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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman $t., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832$106 <br />DATE: <br />T~: <br />FROM: <br />RE: <br />January 7, 2006 `~ <br />Erica Crosby <br />Allen Sorenson ~~ <br />JLORADO <br />VISION O F <br />IN~RALS <br />BOLOGY <br />S~f ETY•ECIENCE <br />Bill Owens <br />Govema <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natual Resource Trustee <br />Review of the Design Report for the Slurry Wall to be constructed at the Sharkey's Lake ,i <br />Gravel Pit, Platte Sand and Gravel, LLC, S&H Mine, Permit No. M-2000-1 SS r/ <br />The Division of Minerals and Geology (DMG) engineering staff has reviewed the above referenced Design <br />Reports and has determined that a slurry wall constructed in accordance with the Design Report and the <br />technical specification contained in the appendices thereto will have a high probability of meeting <br />performance standards established by the State Engineer for lined gravel pits. As a result, once the slurry <br />wall is constructed the Operator may become eligible for the 20 percent slurry wall bonding option <br />described in the DMG Lined Pit Guide2. h3 order to become eligible for the 20 percent bonding option, the <br />slurry wall must be constructed prior to exposing ground in Sharkey's Pit and DMG must be provided with <br />a construction report and engineer's certification for the construction. If DMG determines that the <br />construction report demonstrates that the slurry wall will meet the State Engineer's performance standards, <br />then the direct cost component of the required reclamation bond for the Sharkey's Lake slurry wall would <br />be set equal to 20 percent of the replacement cost for the wall. The slurry wall bond for Sharkey's Lake <br />need not be posted until such time that the Operator will be mining below the water table. Prior to the time <br />that the Operator will be mining below the water table, and for the time period during which the slurry wall <br />is being constructed, the direct costs used to establish the amount of bond needed to cover the slurry wall <br />project would be for grading, topsoil replacement, and revegetation of the acreage disturbed by the slurry <br />wall project. <br />For the purpose of estimating reclamation costs for the slurry wall project prior to the exposure of ground <br />water, the area disturbed by the slurry wall working platform can be assumed to be 60 feet wide by 12,000 <br />feet long, or 16.5 acres. In addition, the Operator must provide, and commit to limiting disturbance areas <br />to, acreages that will be affected by staging and construction work areas, bentonite slurry preparation areas, <br />and soil-bentonite backfill mixing areas. <br />The reclamation cost estimate prepared during consideration of the S&H Mine Permit Amendment AM-01 <br />used the assumption that the slurry wall around Sharkey's Lake would be 10,270 feet long with an average <br />depth of 33 feet. More detailed investigations conducted for the preparation of the Design Report have <br />refined the dimensions for the slurry wall, which it is now estimated will be 12,000 feet long with an <br />average depth of 38 feet. If the Operator intends to complete to slurry wall prior to exposing ground water <br />I URS Corporation, November 2005, Geotechnical Design Report, "Gravel Pit Lining Project, Platte Sand and Gravel, LLC, <br />Weld County, Colorado," URS Project No. 22238240 <br />~ Colorado Division of Minerals and Geology, September 2000, "Guide to Specification Preparation for Slurry Walls and Clay <br />Liners as a Component of a Colorado Mined Land Reclamation Permit" <br />Office of Office of Colorado <br />Mined Land Reclamation ARive and Inactive Mines Geological Survey <br />