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• DIVISION OF MINERALS AND GEOLOGY Depanmenl ut Natural Resources 1 S 1 7 Sherman St., Room 215 Denver, Colorado 80207 Phone 13031 8hh-3567 FA%: 13051 83'_-8106 DEPARTMEM OF NATURAL RESOURCES March l0, 1998 Roy Romer Governor lames 5. Lochhead William T. Cohan Eaecwive D~~eaor Colorado Mined [.and Reclamation Board Michael B. Long Division Director P.O. Box 2226 Grand Junction, CO 81502 Re: Background Agile Stone Systems, Pazkdale Project, File No. M-97-054 Dear Mr. Cohan: On July 8, 1997, the Division received an application from Agile Stone Systems, Inc. for a regular (112) reclamation permit for their proposed Pazkdale Project. The proposed permit azea is located about 10 miles west of Canon City in the azea of the confluence of the Arkansas River and Tallahassee Creek, which in itself drains a very large azea but normally flows little water or runs dry though most of the permit area. The creek has potential to flow large volumes of water during intense storm events. The creek splits the mining operation. The applicant proposes 54.8 acres of gravel extraction between the creek and the Arkansas River, which is within 150 feet of the south permit boundary. Agile Stone Systems also proposes to quarry granite from a mountain side on the opposite side of Tallahassee Creek from the gravel operation, The granite quarry is proposed to be 64.3 acres in size. A smal13 acre sandstone quarry is proposed for this same side of the Creek. Agile Stone recently purchased the ranch with the mineral rights that contain the permit area. Agile proposes to haul most of the mined rock by rail and proposes to build a mine rail system that will connect to the adjacent railroad operated currently by Union Pacific Railroad. Two bridges will convey a road to the sandstone quarry and a railroad spur to the granite quarry. Except for the bridge approaches and footings all operations are proposed to be located essentially outside the 100 year flood plain for the river and the creek. The Division completed a site pre-operation inspection on August l5, 1997 and pointed out numerous potential deficiencies to the operators; CEO, Bill Fehr, and President, Mitch Albert. III IIIlillllllll III COLORADO September 9, 1997, after completing office review of the application the Division sent a lengthy adequacy letter [o the applicant.