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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />July 2, 2003 <br />Basin Resources, Inc. <br />C/O Mr. Ron Thompson <br />3800 Co. Road 63.9 <br />Trinidad, CO 81082 <br />Re: Vent Shaft Closure -Golden Eagle Mine -Permit No. C-81-013 <br />Dear Mr. Thompson: <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />The Division of Minerals and Geology (DMG) has identified possible discrepancies regarding the <br />manner in which the North West #1 Bleeder Fan Shaft (Golden Eagle Mine) was completed and <br />subsequently closed. Permanent closure of the North West #1 Fan Shaft must comply with Rule <br />4.07, of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. <br />Specifically, it was previously our understanding that compliance with Rule 4.07.3(2) was <br />implemented with the installation of a solid steel casing from the top to the bottom of the vent <br />shaft, along with grout injection, to ensure aquifer isolation and sealing. Based upon our inquiry <br />earlier this year, Basin Resources provided the attached MSHA Construction Plan documents. <br />The MSHA Construction Plan documents dated March 29, 1991, and received by DMG on May <br />6, 2003, indicate that the steel shaft lining may be slotted, with pea gravel installed in the annulus <br />above a grouted zone to allow drainage. If this is the manner in which the vent shaft is currently <br />cased, then we cannot conclude that the vent shaft is permanently closed in compliance with Rule <br />4.07. <br />Please provide a report pursuant to Rule 4,07.3 (3), verifying that the North West #1 Bleeder Fan <br />Shaft is permanently closed in compliance with all aspects of Rule 4.07. The report must also <br />reconcile the possible discrepancies noted above. As an alternative, provide a revision to the <br />permit that provides a permanent closure plan that complies with all aspects of Rule 4.07, along <br />with an implementation schedule. <br />CC: Bob Montgomery, Western Energy, Inc. <br />Thank you for your cooperation. <br />