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• <br />Application Exhibit L-Reclamation Costs: <br />C~ <br />] 7. "Given the applicants lack of prior experience in the extraction of sand and gravel, it is important that the <br />corporation's liability be confirmed. The maximum amount of posting of the required reclamation bond should be <br />required: ' <br />(Scott, Brochard, Depratt, Odenbaugh, Reinick & Rippe; February 14, 2001) <br />Response- All fmancial warranties are set and maintained at a level which reflects the actual current cost of fulfilling <br />the requirements of the Reclamation Plan. The Division prescribes the amount of financial wartanty taking into <br />account the nature, extent and duration of the proposed mining operation, type and estimated cost of planned <br />reclamation by the State of Colorado according to the requirements of the Act and reclamation plan. For the S & <br />H Mine, the Division estimated a reclamation cost in the amount of $I 11,500.00. The estimate is based on the <br />applicant'scommitmentthatnomorethan35acresofdisturbancewillbepresenta[anytime. The estimate includes <br />dewatering a portion of the pit to facilitate reclamation, backfilling and grading the pit slopes to the required slopes, <br />topsoil replacement, revegetation, mobilization/demobilization from the job site, and indirect costs. <br />Application Exhibit N -Source of Leeal Ri¢ht to Enter: <br />18. "Family has retained %, ofthe oil and gas royalties on the property. 43 oil & gas wells are currently in productions <br />and 6-7 have yet to be drilled. 1 have major concerns regarding the ability to maintain and optimize the current oil <br />& gas production and future drilling and redrilling operations. There is currently considerations and plans for well <br />spacing capabilities to be changed to every 20 acres. Thus, my financial interest and ownership interests in the oil <br />and gas wells seem to be in jeopardy here:' <br />(Michael J. Pasnik; February 7, 2001) <br />Response- The applicant is required by law to protect any structures located within 200 feet of the affected land <br />(Rule 6.4.19). The statute does not protect structures that have yet to be constructed, such as future oil and gas <br />wells. Platte Sand & Gravel will not cross buried gaslines or use roads with gaslines under them as haul routes <br />until copies of the signed working agreements are submitted to the Division. In lieu of an agreement, the <br />applicant may submit crossing and road designs showing how the gaslines will be protected. The applicant has <br />provided adequate setback distances to ensure structures are protected. The applicant will obtain an agreement <br />from the owner of the structure if mining is to occur closer than the approved mining setback distance. <br />19. "Patina Oil & Gas Corp. is the owner of certain oil and gas leasehold rights under the application lands and <br />operates one oil and gas well on the lands. Patina is concerned about the impact the mining operation will have <br />on Patina's ability to develop, produce, operate and maintain oil and gas wells on the Iands...Patina has received <br />no confirmation from the applicant that Patina's real property rights to use a reasonable portion of the surface of <br />the land for oil and gas development are being preserved...Patina is strongly opposed to any surface <br />development that would require Patina to incur the additional costs and risk associated with directional drilling <br />or that would impair Patina's access to its existing Scottsdale Ranch 2-11L well or other potential well <br />locations." <br />(David W Siple-PATINA O/L & GAS; February lti, 2001) <br />Response- The applicant is required by law to protect any structures located within 200 feet of the affected land <br />(Rule 6.4.19). The statute does not protect structures that have yet to be constructed, such as future oil and gas <br />wells. Platte Sand & Gravel will not cross buried gaslines or use roads with gaslines under them as haul routes <br />until copies of the signed working agreements are submitted to the Division. -n lieu of an agreement, the <br />applicant may submit crossing and road designs showing how the gaslines will be protected. The applicant has <br />provided adequate setback distances to ensure structure are protected. The applicant will obtain an agreement <br />from the owner of the structure if mining is to occur closer than the approved mining setback distance. <br />20. "HS Resources currently operates several wells located on the Leaseholder Lands and has exploration rights for <br />future development that will require reasonable surface access to the Iands...HS Resources and the surface <br />owner have not executed a surface use agreement covering [he mine. HS Resources requests that any permit <br />