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•.: <br /> <br /> <br />DIVISION OF MINERALS AND GEOLOGY <br />Dep, rtment of Natural Resources <br />U I J Sherman St., Room ? 15 <br />Denver, Colorado 80?03 <br />Phone. (3071 865-3557 <br />FAX p03) 8J2-8705 <br />May 19, 2000 <br /> <br />III IIIIIIIIIIIIIII~F <br />999 <br />COLORADO <br />~~ <br />DIVISION O F i <br />MINERALS <br />iY <br />GEOLOGY <br />RECLAMATION; <br />MINING•$AFETY~ <br />Mr Joe Gagliano ell ovens <br /> <br />Barnhart Agency Inc Governor <br /> <br />Greg E. Watcher <br />212 West 13th Street E+eculive Director <br />Pueblo CO 81003 Michael B. Long <br />Division Director <br />Re: Financial Warranty Requirement, Evans #2, M-2000-041 <br />Deaz Mr. Gagliano: <br />Enclosed are copies of the estimated required financial warranty for the Evans #2. The <br />estimates are based on the proposed mining and reclamation activities outlined in the permit <br />application. Also, there aze two estimates. One estimate relates to the reclamation of a 50 acre <br />disturbance which includes apond/lake. The second estimate involves backfilling the pond/lake <br />with on-site overburden material. The difference relates to water rights issues. If there are no <br />water rights issues, the 448 acre permit area will be mined in 50 acre pazcels (each one will be <br />reclaimed before moving on to the next parcel) resulting in a 300 acre lake (exposed <br />groundwater). If water rights issues cannot be resolved, the operator will be required to backfill <br />the mined pit in order to eliminate exposed groundwater. <br />The operator proposes to submit a floating bond sufficient to cover reclamation of 50 acres of <br />disturbed area so the maximum allowed disturbance will be 50 acres. This will include a <br />pond/lake and the shoreline azeas (this assumes no water rights issues). Reclamation will consist <br />of scarifying the shoreline and stockpile azeas, replacing topsoil and reseeding the disturbed <br />areas above the water line. Estimated cost: $25,477. A copy of the cost summary form is <br />enclosed. <br />The second financial warranty estimate will require stripping and stockpiling topsoil off of 142 <br />acres within the permit azea, excavating sufficient overburden material from the 142 acre tract <br />to backfill the mined pit, placing the overburden material in the pit, replacing topsoil in the <br />entire 192 acre disturbance (142 acre borrow azea and 50 acre pit azea) and reseeding the 192 <br />acre area. Estimated cost: $2,395,679. A copy of the cost summary form is enclosed. <br />If you disagree with the cost estimates, or if you determine that 1 did not include an activity, or <br />did include a task that you feel needs addressed, please let me know prior to June 14, 2000. <br />Otherwise, the financial warranty requirement will be set at $2,395,679 (unless water rights <br />issues are resolved before the permit issues). As noted in the adequacy letter, Water Resources <br />informed the Division that a temporary substitute supply plan (TSSP) will be issued sometime <br />