1986-06-13_GENERAL DOCUMENTS - C1981018

• Permit No: C1981018
• IBM Index Class Name: General Documents
• Doc Date: 6/13/1986
• Doc Name: Permit Application Approval Package Fed Leases C-023703, D-047201, C-8424, C-8425, C-0126669
• From: OSM
• Media Type: D
• Archive: No

-46-
•
the processing plant to the railroad loadout via conveyors; therefore, no haul
roads, as defined by Rule 4.03.1 of the Colorado Permanent Regulatory Program,
will be constructed.
The operation is in compliance with the requirements of this section.
XXI. Bonding - Rules 2.05.4(2)(b), Rule 3
Information pertaining to performance bonding and reclamation cost estimates
for the Deserado Mine is presented in Section V.K of Volume 4 of the revised
permit application.
The total bond amount approved at the time of permit issuance- in July of 1981
was $6,000,000, based upon an actual estimated cost of $5,951 ,224. This
amount was derived using fairly generalized cost estimates which were accepted
by the regulatory authorities at the time due to the level of conservatism
built into the calculations.
During the mid-term review of the Deserado Mine permit which was undertaken in
July 1985, the permittee submitted a recalculated reclamation cost estimate to
the Division using more detailed estimating techniques and current costs in
accordance with Division policy regarding the updating of reclamation cost
estimates. The total recalculated bond amount contained in the submittal was
$3,486,400. The revised estimate was reviewed by the Division in detail ,
i revealing several deficiencies in the supporting calculations. An outline of
all deficiencies noted in the review was forwarded to the permittee as part of
the overall midterm review document sent to Western Fuels on December 2,
1985. The permittee responded to the concerns on February 19, 1986, with a
revised total estimate of $5,883,470. The response was reviewed by the
Division, resulting in a final acceptable bond amount of $6,202,465.00. A
corporate surety bond in the amount of $6,000,000 is currently being held by
the Division, and will be increased to meet the revised amount prior to final
approval .
At the time of permanent regulatory program permit issuance in July of 1981 ,
the permittee expressed an intent to bond the operation incrementally based
upon the proposed development schedule described in Volume 4, Figures III-11
and III-12, Pages III-30 and 31 of the application. As a result, Stipulation
No. 1 was attached to the permit.
The requirements of this stipulation were satisfied with the acceptance by the
Division of a performance bond in the full amount of $6,000,000.
The operation is in compliance with the requirements of this section.
XXII.� Sealin2 of Drilled Holes and Underground Openings - Rules
9 ,
4.07
Information dealing with the sealing of drilled holes and underground openings
at the Deserado Mine is presented in Section V.F, Pages V-27 to V-29 of Volume
4 of the permit application. The permittee has committed to casing or
otherwise managing all exploration holes, drill holes, shafts and wells as
approved by the Regulatory' Authority.
1