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• <br />DIYISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, CO 80203 <br />Phone: (3031 866.3567 <br />FAX:1303) 832-8106 <br />April 14, 1995 <br />Brice F. and Phyllis J. Lee <br />940 County Road 119 <br />Hesperus, Colorado 81326 <br />• iii iiuiiiiiiiii iii <br />STATE OF COLORADO <br />a`O <br />_ Ne <br />f~{,r'~; <br />~IBl6~ <br />RoY Romer <br />Governor <br />Michael 8. Long <br />Division Dneclar <br />RE: Horvath Pit No. 1, Permit No. M-77-546, Enclosed Bond <br />Recalculation <br />Dear Mr. and Mrs. Lee: <br />As you may recall, the Division's February 27, 1995 inspection <br />report for Horvath Pit No. 1 in La Plata County indicated that the <br />Financial Warranty for the operation would be recalculated per the <br />wishes of the Mined Land Reclamation Board as part of the general <br />statewide bond recalculation effort directed at all permitted <br />110(2) type mining operations. The bond recalculation is in <br />response to the lifting of the $5000.00 bond cap, for 110(2) type <br />operations, which resulted from the 1991 passage of Senate Bill 91- <br />177. <br />Enclosed is a preliminary cost estimate for the operation based on <br />a review of the original permit application and any subsequent <br />correspondence or revisions to the permit. The condition of the <br />site, at the time of the last inspection, was also taken into <br />consideration. As you can see from the attached calculations, it <br />appears that the site is substantially under-bonded at the present <br />time. Therefore, pursuant to Section 34-32-117(41 of the Colorado <br />Please review the enclosed figures as soon as possible and contact <br />our office if you feel any of the calculations are in error. Due <br />to the lack of an accurate, up to date scale map of the operations <br />disturbed areas the quantities used in the calculations are largely <br />based on visual estimates taken from photographs of the site as it <br />appeared on February 27, 1995. The original permit text is also <br />quite vague and incomplete. Clarification of, and detailed <br />information (including topographic mapping) describing details <br />concerning your proposed method of operation and proposed <br />reclamation methodology for Horvath Pit No. 1 would be of great <br />benefit in producing more accurate cost figures which could <br />significantly lower the calculated reclamation estimate amount. <br />