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STATE OF COLORADO
<br />DIVISION OF RECLAMATION, MINING AND SAFETY
<br />Department of Natural Resources
<br />1313 Sherman St., Room 215
<br />Denver, Colorado 80203
<br />Phone: (303) 866-3567
<br />FAX: (303) 832-8106
<br />January 4, 2008
<br />Carol Ibach
<br />64669 West Ranger Road
<br /> COLORADO
<br />
<br />~~~`~~ DIVISION O F
<br />RE ~ IAMATG N
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<br />pN~~r~~g ar~ emor
<br />Gov
<br /> Russell George
<br /> Executive Director
<br /> Ronald W. Cattany
<br /> Division Director
<br />Montrose, CO 81401 // Natural Resource Trustee
<br />~" 4~~.
<br />RE: Response to Inquiry, Western Gravel, Inc., South D-20 Pit, Permit No. M-1992-102.
<br />Dear Ms. Ibach:
<br />The Colorado Division of Reclama1io200MI and Decembe~ 22, 200i~isregard ng the So d h D 20 Pit.
<br />letters of inquiry dated November ,
<br />Thank you for taking the time to write your concerns to the Division.
<br />As you have observed, mining activities at the South D-20 Pit, Permit No. M-1992-102, are active.
<br />The permit is issued to and operated by Western Gravel, Inc. (the "Operator").
<br />The original permit at this site was approved on November 20, 1992, to conduct mining and
<br />reclamation activities on 9.9 acres affected lands. At that time, reclamation of affected lands was
<br />guaranteed by a financial warranty in the amount of $14,400. On April 25, 1996, the Division
<br />approved an application from the Operator to expand the permit boundary from 9.9 acres to 61.02
<br />acres. Permit documents indicate that of the total 61.02 acres, mining activities would affect
<br />52.79 acres. This expansion was accompanied by an $86,775 increase in financial warranty,
<br />totaling $101,175. The $101,175 financial warranty addressed reclamation liability for the 52.79
<br />acres affected lands. On July 18, 2005, the Division approved a revision to the permit to
<br />incorporate a weed control plan. Division records indicate no additional modifications to the
<br />permit. Permit status is intermittently active, which means mining activities may remain dormant
<br />for periods of time exceeding 180 days.
<br />As noted above, the 1996 expansion of the permit was accompanied by an increase in financial
<br />warranty totaling $101,175. Since that time the Division has twice updated its reclamation cost
<br />estimation to verify the adequacy of the financial warranty. On March 28, 2001, the Division
<br />calculated the cost of reclamation at $60,752. Four years later, on March 14, 2005, the Division
<br />calculated the cost of reclamation at $68,036. The 2001 and 2005 cost estimations were based
<br />on the actual acres affected to date rather than the total 52.79 acres to be affected during the life
<br />of mine, portions of which had not yet been affected. Current records indicate approximately 50%
<br />of the lands covered by the financial warranty are affected and not yet reclaimed, with
<br />approximately 25% previously affected and reclaimed, and 25% not yet affected. Therefore, the
<br />existing $101,175 financial warranty appears sufficient to ensure completion of reclamation.
<br />Permit documents from the 1996 expansion estimate the life of mine at 15 years. Therefore,
<br />mining activities might continue through 2011. However, the life of mine is an approximation only
<br />Office of
<br />Office of Active and Inactive Mines
<br />Mined Land Reclamation
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