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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depuunenl ul ~.\'alural Re>ources <br />131 5 ~hennan St ,Room ? I S <br />Denvcr, Colorado 80_'03 DIVISION O F <br />Phony: uusl BG6asn~ MINERAL S <br />rn~: csosl esz-aloe & <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />February 16, 2001 <br />Bill Owens <br />Mr. Kris DeGolyer governor <br />s.. <br />Southway Construction Company, Inc. ( ereg L. bv,lcncr <br />117 White Pine Drive ~ ~9qJ _~ ~ E.ecmive Director <br />M- --' ~'' ' Michsd B. Lung <br />Alamosa, Colorado 81 101 ~ D:vrsmn Dueaor <br />RE: Butcher Pit, Permit No. M-1995-060, Enclosed Bond Recalculation 6~j2ecF<< <br />Dear Mr. DeGolyer: <br />Enclosed is an updated cost estimate for reclamation of the Butcher Pit, based on the requirements <br />of the original permit application and any subsequent correspondence or revisions to the permit. The <br />condition of the site at the time of the last inspection 110-23-1997) was also taken into <br />consideration. As you can see from the attached calculations, it appears that the site is significantly <br />under-bonded. Therefore. pursuant to Section 34-32.5-117(41 of the Colorado Mined Land <br />Reclamation Act, the Division requires that Southwav Construction Comoanv. Inc. submit adequate <br />Financial Warranty within 60 days of the date of this letter. <br />Please review the enclosed figures as soon as possible and contact our office if you feel any of the <br />calculations are in error. <br />Reclamation costs have significantly increased over the past few years. Please see the enclosed <br />memo regarding this issue. <br />It is important to point out that the enclosed updated estimate is based on a bond forfeiture scenario <br />where the permit has been revoked and the Division must hire an independent contractor to complete <br />all remaining reclamation activities at the site as provided for in the approved reclamation plan. <br />If you need additional information, please contact me at the Division of Minerals and Geology, <br />Durango Field Office, 701 Camino del Rio, Room 125, Durango, Colorado 81301, telephone no. 970- <br />247-5062. <br />Sincerely, <br />_~ ~~~ <br />Steve S. Shuey <br />Environmental Protection Specialist <br />enclosure <br />