2009-04-22_PERMIT FILE - M2008010

• Permit No: M2008010
• IBM Index Class Name: PERMIT FILE
• Doc Date: 4/22/2009
• Doc Name: Review of reclamation cost estimation
• From: DRMS
• To: McStone Aggregates
• Email Name: WHE
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone] CE Z-D
April 22, 2009' APR 2 7 2009
Divisiotl of RecUmatio?,,
Darin Stone MP,;ng and Safety
McStone Aggregates
P.O. Box 483
Cortez, CO 81321-0484
VIA FACSIMILE [phone] and US Mail
RE: Review of Reclamation Cost Estimation,-
Mud Creek Pit, Permit No. M-2008-010:
Dear Mr. Stone:
COLORADO
D I V I S ION OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
On June 11, 2008, the Division approved your application for the Mud Creek Pit and set
financial warranty at $114,864. The amount of financial warranty set by the Division was
based on a reclamation cost estimation generated by the Division and totaling $114,864. On
February 25, 2009, the Division received your request for review of the reclamation cost
estimation. The request for review was prepared by Nathan Barton and dated February 23,
2009.
Pursuant to your request, the Division has re-evaluated the cost of reclamation at $51,293.
Please find enclosed 18 pages of summary, work sheets and data sheets utilized by the
Division to determine the cost of reclamation. This new cost estimation is limited to
reclamation liabilities associated with the first year of operations. Specifically, this estimation
addresses reclamation of 13.3 acres affected lands, as indicated on page 15, Table D-7-3, of
the application. This new cost estimation differs substantially from the Division's previous
estimation. An explanation for the apparent discrepancy between the two cost estimations
follows.
Under Rule 6.3.4(2) the Board has prescribed permit applications shall contain reclamation
cost estimations which address the point of maximum disturbance. Under Rules 6.4.4(e),
6.4.5(e) and 6.4.12, the point of maximum disturbance may be defined as a portion of the total
affected lands if affected lands are reclaimed contemporaneously as the operation advances.
Permit documents for the Mud Creek Pit divides the approximate 105 acres of affected lands
into 22 phases with acreage values for the phases ranging from 2.28 acres to 8.28 acres.
Mining operations will be active in multiple phase areas at any given time. Therefore, the point
of maximum disturbance utilized to calculate the cost of reclamation varies and is not
consistent throughout the life of mine. Obviously, the two estimations calculated by the
Division utilized different points of maximum disturbance.
Office of Office of
Mined Land Reclamation Denver Grand Junction • Durango Active and Inactive Mines