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~ III IIIIIIIIIIIII III ~ STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1 313 Sherman 51., Roam 215 Denver, Colorado 80207 Phone: 1303) 866-3567 FA%:007)832-8106 April 25. 201N) Mr. Joe Gagliano Barnhart Agency.lnc. 12 W. 13'" St. Pueblo. CO 81003 RE: Broken Spear Pit (File M X000-050) Results of adequacy review of 110 permit application Dear Mr. Gagliano: Bill Owens Covermr CreG F. ev.,lcne~ Etecuove Director Michael B. Lung Division D~recror The Division has reviewed the permit application for the Broken Spear Pit (File M-2000-050) and has identified the following adequacy concerns: NOTICES (Rule 1.6.2): The application contains evidence that notices of the application have been sent to the Lincoln County Board of Commissioners and the Board of Supervisors of the High Plains Soil Conservation District. There is also evidence that the required notice of the proposed mine has been posted at the mine site and [hat a copy of the application has been filed with [he Lincoln County Clerk. Although there is some question about the proximity of the pit to property owned by other than the applicants (See issues identified under Exhibits A and E.), there is no evidence in the application that notices of the application have been sent to all possible owners of record of surface lands within 200 feet of the permit/affected land boundary. The Division has been advised that there will be some delay in the publication of the newspaper notice which the Division agrees is appropriate. Such a delay will, however, extend the end of the 10-day comment period but possibly not the current decision date of May 12, 2000. Prior to [he May 12, 2000 decision date for the application, the Division must be provided with evidence of the receipt of notices of the application by Lincoln County, the High Plains Soil Conservation District, by any owner of record (other than the Allens) of surface land within 200 feet of the permiUaffected land boundary as well as evidence of the publication of the newspaper notice of [he application. PERFORMANCE AND FINANCIAL WARRANTIES: Although approval of the permit application may be secured without submittal of acceptable performance and financial warranties, a reclamation permit cannot be issued without such instruments being in place. Neither a performance warranty nor a financial warranty were submitted with the permit application for the proposed Broken Spear Pit. A blank performance warranty form is attached to this review for your use. Since the estimated 59,671.00 cost of reclamation included in the application is acceptable to [he Division, please notify the Division the type of financial warranty intended to be used and the Division will send you the proper form(s). EXHIBIT A (Rule 6.3.1 (2)): Although the Exhibit E-Mining Plan Map indicates that the Allens own the property "all around the pit', this does not clearly eliminate the possibility that there still may be adjacent owners of record of surface land within 200 feet of the permit/affected land boundary. According to the copy of the deed supplied in Exhibit G, the Allens own only the NW'/. and SE'/s of Section 7 and the permit area represented on the Exhibit A and Exhibit E maps is very close to or may even extend into the NE'/a SW '/. of the section. It is the Division's opinion that the boundary between [he NW '/+ and SW '/. would be marked, as is the usual case, by an EW line extending From the center of the section marked by the large figure 7 and not the line identified as UTM 4368000N. (Please also see discussion under Exhibit E.) There are a number of complications and requirements [hat may be involved here. To begin with, please indicate if the proposed permit area is intended to be limited to the SE'/. NW '/. of Section 7 and, if so. indicate if it lies over 200 feet from the boundary with the SW '/< of Section 7, i.e. that the Allens own all the property within D I VISION O F MINERALS GEOLOGY FOR YOUR CORRESPONDENCE FIIE R E C L A M A T I O N MINING•SAF ETY