1999-08-19_GENERAL DOCUMENTS - C1981031

• Permit No: C1981031
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 8/19/1999
• Doc Name: Consultation Request-Bond Liquidation
• From: David Berry
• To: Cheryl Linden
• Permit Index Doc Type: Reclamation Projects
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St.,Room 215
;M�l
VISION O F
Denver,Colorado 80203
Phone:[phone] N E RA L S
FAX:[phone] &
GEOLOGY
RECLAMATION
MINING-SAFETY
Date: August 19, 1999 Bin Owens
Governor
Greg E.Walcher
To: Cheryl Linden, Office of Attorney General Executive Director
Michael B.Long
From: David Berry Division Director
Re: Consultation Request—Bond Liquidation—New Pryor Mine
On August 9, 1998, we received the attached correspondence dated August 3, 1998, from the State
of New York, Insurance Department, Liquidation Bureau. The letter includes a request that we sign
a General Release so that the state of New York may liquidate the New Pryor bond ($58,073.00)
and make payment to us in the amount of$58,073.00. Upon reviewing the file, I see that we
previously filed a claim in the amount of$77,578.00,based upon the amount of money actually
expended by DMG to reclaim the New Pryor site; however, the original bond was executed for the
amount of$58,073.00. It is also important to note that DMG entered into a cooperative agreement
with the Office of Surface Mining during 1990 to obtain the monies with which reclamation of the
New Pryor site actually occurred.
Your opinion is requested as follows:
-Please advise us regarding the appropriate course of action relative to the General Release.
To the best of my knowledge, we do not typically attempt collection on a bond for an
amount greater than the bond, so your advice is also requested as to whether we should
continue to pursue the $77,578.00 amount. My recommendation is that if there is little or no
basis upon which to make the inflated claim, and if it is unlikely that we would obtain an
amount larger than $58,073.00, then it seems prudent to terminate this matter by accepting
the $58,073.00.
-Please advise us regarding the proper use of the recovered bond money if and when it is
obtained. Recall that the actual reclamation at the site was conducted by a cooperative
agreement with OSM. Do we send the recovered money back to OSM, or is there another
proper course of action?
I attach the following document copies for your review:
-Bond—C-81-031 ($58,073.00) (1/20/84)
-OSM/DMG Agreement (7/5/90)
-Claim for$77,578.00 (3/26/92)