2009-02-19_GENERAL DOCUMENTS - M1985001

• Permit No: M1985001
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 2/19/2009
• Doc Name: Phone call from Jim Helmericks
• From: Bob Oswald
• To: File
• Email Name: RCO
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215 n
Denver, Colorado 80203??j?
Phone: [phone]
FAX: [phone]
TELEPHONE LOG FEB
Division of and Sa ety n,
DATE: 2/19/09 Mining
FILE: M-1985-001, J&J Pit
FROM: Bob Oswald, DRMS Durango
RE: Phone call from Jim Helmericks, operator.

COLORADO
9 ??
D I V I S I O N 0
RECLAMATION
MINING
E
SAF
TY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
Mr. Helmericks called me today at 8:50 am, first asking if Wally Erickson (DRMS Durango) was in
the office yet, since he wanted to speak to him. Mr. Helmericks was informed that Wally was not yet
in, but that he was expected very soon. I said he could leave Wally a message on his voice mail. Mr.
Helmericks said he'd call Wally but that he also wanted to talk to me.
Mr. Helmericks asked my opinion on a bonding question involving his permit, in which a third party
had posted a bond for his permit and has been maintaining that bond for many years. The bond is an
Irrevocable Letter of Credit through a local bank. He stated that Elizabeth Taliaferro (DRMS Denver)
had sent him a letter informing him that the bond was going to be terminated and that he would need to
replace the bond to keep his permit in good standing. The third party that had posted the bond was
apparently choosing to cease its backing of the bond, and that the bank had notified Mr. Helmericks
that the bond was due to terminate. He felt that Elizabeth was treating him unfairly and he questioned
her ability to perform her job.
I told him that I believed she was acting properly and according to standard procedure, as I understood
it. She was simply informing him, the permitted operator and the party ultimately responsible, that he
must act to ensure the continuity of the bond. He stated that nobody should be able to terminate the
bond, not the bank and not the Division, since it is "Irrevocable." He said that he and the third party
have a contract, and that they must continue backing the bond. I replied that the contract is a matter
outside the purview of the Division.
He said he has an attorney looking into it (Colorado Senator Ellen Roberts), that he has gathered a lot
of paperwork backing his position, and that he has an extensive legal background which gives him a
good understanding of this situation.
I told him that this process is quite common, and the Division acts similarly in these cases. I urged him
to look into replacing the bond, and to discuss his questions with Elizabeth, but that I didn't have any
other opinions or views. He asked for Wally's phone number so he could call Wally later to discuss
this.
This conversation lasted about 15 minutes.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines