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= iii iiiiiiiiiiiii iii <br />~ STATE O~ COLORADO <br />DIVISION OF h11NERALS AND GEOLOGY <br />Department of Natural Resources <br />7 313 Sherman St ,Room 215 <br />Denver, Colorado 80'03 <br />Phone: 13071856-3557 <br />FAr: (3031 832-8106 ~E~EIVELi <br />Febnlan' 6, 2001 FEg 0 g ~~ <br />Ed Stew-art IX~~a~~88Ge~, <br />Valco Gunnison Concrete Division <br />P.o. BD. s37 <br />'~i~~+li ' <br />~ ••`~~~~~r~.Jo~":~i;~, DIVISION O F <br />MINERALS <br />~` 6.•19 ~} ~.r <br />3~{ 'Z <br />( RECLAMATION <br />MINING•SAFETY <br />.1 <br />__ <br />(_ <br />b7 ~' 1 ~• I1,v,( <br />Bill Owens <br />f~ I Q _ /, r~~ <br />l'Lwwac-I ul/ W Governor <br /> Greg E. Walther <br /> Executive Duectur <br />Gunnison. CO 81230 Micnacl B. Long <br />Division Director <br />Re: Ready Mix Pit, Perntit No. M-1977-023, Reclamation Cost Recalculation. Bond Increase Notice. <br />Dear Mr. Stewart, <br />I have recalculated [he reclamation costs for dte above-named site, based on the current condition of the site and the <br />approved mining and reclamation plans. As you know, the bond amount of each permit must be reviewed <br />periodically. The State statutes require that if mt existing bond amount is insufficient, the operator must provide the <br />additional bond within 60 days of notification. Your existine bond amount is $27,837.00. The inclosed <br />reclamation cost estimate amounts to $ 115.814.00. which indicates an increase of $87.977.00 in the reouired bond. <br />You are hereby notified of such increase <br />Please revie+v the figures in the enclosed reclamation cost estimate packet. The packet consists of a one-page <br />summary sheet followed by the set of detailed individual task sheets, a set of equipment cost and production sheets. <br />and several pages of notes and calculations. The figures in the packet account for the performing all outstanding <br />reclamation in the amounts needed presently, and according to the specifications from the approved plan in the file. <br />This cost estimate is significantly higher than the existing bond amount. 1 have tried to analyze the reason for this <br />increase. and the best single answer 1 can find is that numerous reclamation cost items were underestimated or <br />excluded in the past. <br />A few points should be made about the basis and assumptions of the updated figures in this estimate. Tltis site was <br />approved for mining a series of ponds initially, then uniting them into larger lakes by full removal of the dikes. <br />Later, [ecl)nical revision TR-01 allowed for leaving the dikes in place so the small ponds +eould remain. A later <br />revision allo+ved partial removal of the dikes, to make one large pond with peninsulas in it. A revision also <br />specified the removal of the five acres in the NE comer of the property from reclamation liability, but did not <br />remove it from the permit area. The industrial buildings and other structures in that NE five acres have no <br />reclamation costs were assigned [o s[ntctural removal there, but are still subject to clean-up costs on that area. <br />The largest single task cost in this estimate is tite removal mid disposal of structures and debris from the site. Tltis, <br />as you will recall from my January 24, 2001, inspection, involves the demolition of the steel shop building altd <br />concrete floor, and the offsi[e hauling of all miscellaneous debris and equipment stored near the building and on the <br />north end of [he penni[ area. For all true debris, or parts and equipment whose condition is unknown, 1 included <br />haulage and disposal costs. Contaminants. ferrous and pu[rescible materials, and hydrocarbons cannot be disposed <br />of onsite due to the high water table. For equipment and parts which appeared to have some current value, and <br />salvage value for the foreseeable future, I included only offsite hauling cost and no disposal cos[. Concrete debris <br />all appeared [o be free from steel and iron. I[ can therefore be disposed of onsite and below the water [able. For all <br />concrete debris I included only [he cost of carroing it to the nearest pond and dumping it in for onsite disposal. The <br />demolition [ask sheet includes line-by-line detail for your information. <br />