Laserfiche WebLink
The Pittsburg & Midway Coal Mining Co. <br />A Chevron Company <br />6400 South Fiddler's Green Circle, Englewood, CO 80111. Phone 13031930-3600 <br />December 23, 1991 <br />Mr. Bob Hagen <br />Director, OSMRE Albuquerque Field OH'ice <br />625 Silver Avenue, S. W., Suite 310 <br />Albuquerque, NM 87102 <br />RE: THE PITTSBURG & MIDWAY COAL MINING CO. <br />EDNA MINE PERMIT C-80-001 <br />REQUEST FOR APPROVAL OF 1992-1996 PERMIT TERM LIABILITY AMOUNT <br />Dear Mr. Hagen: <br />Per COMLRD permit distribution requirements, the Edna Mine 1992-1996 Permit Term <br />Liability Evaluation and Exhibit 4.8-1 are enclosed. These materials address the <br />determination of Edna's liability for the upcoming permit term. <br />Edna Mine 1992-1996 Permit Term Liability has been calculated at $6,400,000. The <br />estimate is conservative, reflecting the cost required to completely reclaim the Edna <br />Mine at the end of 1992, the permit term year requiring the largest amount of <br />reclamation work. The methods and calculations used to determine the liability <br />estimate are detailed in the aforementioned enclosures. <br />In addition to the above submittal, P&M requests approval of a reduction in Edna's <br />liability at the end of Year 1. At the end of Year 1, P&M anticipates completion of this <br />the West Ridge Area`s reclamation work. This work accounts for approximately 30% of <br />the calculated Year 1 liability. As a result of its completion, therefore, the Edna Mine <br />will be bonded in excess of nearly $2,000,000.00 during the remaining four years of the <br />permit term. This is economically undesirable. P&M therefore proposes the following <br />plan for the fourth quarter of Year 1 (1992): <br />1. PB.M submits an updated liability amount for the Edna Mine; <br />2. COMLRD staff conduct an on site inspection of the West Ridge Area's reclamation; <br />and <br />3. Upon COMLRD approval, Edna's liability would be lowered to that of Year 2, the `'next <br />to worst case" year. <br />If there are any questions regarding this submittal, please contact Wayne Erickson (303- <br />930-4113), Brian Gontarek (303-930-4027) or me (303-930-4248). <br />