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6. Bonded and Loniz Term Responsibility. Deep Cut has concerns regarding bonding and long <br />term responsibility. <br />DRMS has calculated the estimated reclamation liability for this site. The liability by law <br />covers the cost to reclaim the site after mining is completed. Staff updates this estimate <br />periodically to ensure there is an adequate bond to complete reclamation. Deep Cut noted "the <br />project should be set back several hundred feet further to protect the intake channel, the head <br />gate, irrigation ditch and access road." The applicant has done that with the removal of the 3 <br />acres within the 100 year flood plain. The Division has no jurisdiction beyond 200 feet of the <br />affected area or for agreements beyond the life of the mine. DRMS staff notes that the <br />applicant has submitted a "Promise to Correct" to Deep Cut for any damages to structures <br />within 200 feet and related to mining activities. The Division noted Deep Cut Ditch received <br />the "Promise" but has not formally signed the agreement. Based on Rule 6.4.19 (b), where <br />such an agreement cannot be reached, the applicant shall provide engineering evaluation that <br />demonstrates that such structure shall not be damaged by activities occurring at the mining <br />operation. Based on the information provided to the Division's engineer, the distance and <br />depth of excavation present no issues of stability for structures within the 200 foot <br />jurisdictional limitation. The Division feels the estimated bond meets the requirements of the <br />law to cover the reclamation liability and requested long term agreements are beyond its <br />jurisdictional authority. <br />7. Water Contamination. Deep Cut has concerns regarding possible water contamination from <br />asphalt processing and other chemical spills. <br />The submitted plan does recognize the possibility of an asphalt plant on site from time to time. <br />Initial discussions with a sub-contractor may in fact eliminate the possibility of on site <br />processing as materials will be hauled off site for such activities. But it is important to note <br />that this does not preclude a plant from being brought in. Rule 3.1.7 addresses impacts to <br />groundwater quality. The Division uses this rule as a point of basis for an oil and spill <br />containment policy. By policy a permit holder is required to notify the EPA, Colorado Health <br />Department and Division within 24 hours of any spill of a reportable quantity of any fuels or <br />chemicals. The application notes fuels will be brought in by portable equipment and none will <br />be stored on site. An asphalt clean up plan has been submitted to ensure that reject and <br />overspill are cleaned up weekly if processing is underway and that no asphalt materials are <br />placed in an area where they can come in contact with water. These are standard requirements <br />for all permitted sites and the applicant has addressed them accordingly. The Division feels <br />that the applicant has met the minimum requirements of the Act and Rules regarding this <br />matter. <br />Staff has attempted to answer the above referenced issues with as much detail as possible. The responses are <br />not intended to be all encompassing and other factors may have been weighed in the final decision process.