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November 16, 2007 <br />Mr. Daniel Hernandez <br />Re: Hayden Gulch Loadout - MR-16 <br />Page 2 <br />Item 2. The current reclamation cost estimate does not include the removal of some fences, gates <br />interior light poles, signage, and the remnant stacker-tube coal pad (coal) Please <br />incorporate the demolition (removal) of these items in the reclamation cost estimate. <br />Response: HGTI anticipates leaving most fencing as postmine features to facilitate livestock <br />grazing, which is an approved postmine land use. The only fencing HGTI anticipates removing is <br />approximately 3,800 linear feet of three-strand barbed-wire fence, which serves to delineate the <br />permit boundary, located along the rail loop in Section 14 on lands owned by the State of Colorado, <br />Board of Land Commissioners. This fencing is shown on Exhibit 12-1, and is from approximately <br />N-2000 to N-3800. <br />The remnant coal pad (coal) has been approved as backfill material (Tab 17, page 3, reads <br />"Backfilling and grading will be the second activity conducted... Coal fines in the loadout pile and <br />coal storage area will be used as backfill material."). Consequently, removal of the coal material is <br />included in the backfilling cost (Tasks 001 - 003, Attachment 23-1) and there is no need to develop <br />a separate cost estimate for removal of this remnant coal. <br />A reclamation cost estimate for removal of the fencing identified above, the interior light poles and <br />signage has been prepared. The cost estimate should be inserted in the PAP in accordance with the <br />accompanying insertion instructions. <br />Item 3. Please correct the statement on page 5 of Tab 13 of the PAP that states that wells HGDALI <br />and HGDAL2 were abandoned in accordance to the rules and regulations of the Colorado <br />Division of Water Resources. Although monitoring at these sites has ceased, the wells have <br />not been abandoned in accordance with the regulations (note that the wells need to be <br />abandoned in accordance with Tule 4.07.3 as well). <br />Response: Monitoring wells HGDALI and HGDAL2 were abandoned in September 2007. <br />Abandonment reports, which show they were abandoned in accordance with both Division of Water <br />Resources regulations and Rule 4.07.3, are attached and should be inserted into the PAP per the <br />accompanying insertion instructions. Page 5 of Tab 13 has been revised as appropriate. <br />Item 4. Please file a copy of the abandonment (completion) reports for Shallow Well No. I and Well <br />22772F with the Division. From experience (with Phase III bond releases), the Division <br />recommends that well abandonment reports for the site be placed in an appendix or exhibit <br />of the PAP [a finding is required that all wells (etc.) have been sealed]. <br />Response: Shallow Well No. 1 and Permit 22772-F were permitted (and drilled) by H-G Coal <br />Company, the previous owner/operator of the Hayden Gulch Loadout facility. HGTI has reviewed <br />the Colorado Division of Water Resources (CDWR) files, as well as, internal project files for <br />permit, completion, etc. forms and supporting documentation for these wells. The CDWR files <br />indicate that Shallow Well No. 1 (Permit 24576-F) is a replacement well for 22772-F (owner <br />designation - Grace Hayden Well B). Shallow Well No. 1 is located in SWA NEA Sec. 10, T6N, <br />R88W. A completion report for Shallow Well No. 1, as well as, the well permit form and water <br />right decree are provided for insertion into the PAP. <br />Hydro-Environmental Solutions, Inc. <br />P.O. Box 772996 <br />5710Th Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-871-6125 * 970-871-6196 (fax)