2009-06-30_PERMIT FILE - M2009018 ‎(8)‎

• Permit No: M2009018
• IBM Index Class Name: PERMIT FILE
• Doc Date: 6/30/2009
• Doc Name: Reply to Preliminary Adequacy Review
• From: Varra Companies, Inc.
• To: DRMS
• Email Name: MAC
• Media Type: D
• Archive: No

Varra Companies, Inc.
Office of Special Projects
8120 Gage Street Frederick, Colorado 80516 Telephone [phone] Fax[phone]
`Tracts A, B, and C may be extracted concurrently. All extraction will proceed in a
manner to minimize visual and audible impacts to adjacent lands and properties. In Tract
A, extraction will commence to facilitate removal of material from a nearby residence and
gain time to vacate and relocate gas lines from the interior of the tract in cooperation with
the oil and gas producer. As extraction passes by red stage line one (1) shown on Exhibit
C-2: Extraction Map, a fill operation will create the means for relocating oil and gas line
A, while lines B and C will be relocated along the existing seep access road. All gas line
relocation will be coordinated with the current owners of the affected line.'
The Stage Lines are reference points to aid in describing and understanding critical shifts in
logistics at the location. The lines are approximate and relative to precedent activity, and
generally cannot be determined to a specified date, but relative to product demand and on-site
production.
The oversight in failing to indicate on the map the reference in text to the gas lines is corrected in
the revised Exhibit C-2: Extraction Map. The intended route of the relocated gas lines will be
shown by Technical Revision once negotiations and final routes are established outside of the
intended area(s) of extraction.
I 8. Please indicate if the Applicant has an agreement in place with the owner of the oil and
gas lines to relocate these structures. If an agreement has not been reached, the Applicant may
file a Technical Revision to address the relocation of the oil and gas lines when an agreement has
been finalized. Without an actual agreement in place, the Reclamation Plan must reflect
reclamation with the oil and gas lines in place. The Reclamation Plan Map that was submitted
could be used as an alternate plan if an agreement to relocate the oil and gas lines is reached.
Please revise the Reclamation Plan accordingly.
The Mining and Reclamation Plan Maps show conceptually the optimal build out of the location
for extraction and subsequent reclaimed slopes. Historically, when the unforeseen affects intent,
a Technical Revision is applied to the approved application showing the final determining
factors. The mineral estate must cooperate with the surface estate, and we do not foresee any
reason why an agreement cannot be reached to relocate lines.
The history of this is well established. What should be understood is an agreement is reached
and costs derived based upon current need. Since we do not know how quickly state and local
approval will occur for the intended project, it becomes speculative to engage in relocation
agreements too far in advance of need. A cost today may not be valid even in the near term. To
reflect the impracticality of extracting Tract A with the current lines permanently in tact is
simply not a consideration of the applicant, and creates an undue burden on the operation.
The location of the oil and gas lines over our aggregate resource does point to the failure of state
and local authorities in protecting our valuable deposits under Title 34; and specifically a failure
of the Colorado Oil and Gas Conservation Commission and local planning departments. The
placement of oil and gas lines seem to consider the economics and values of the oil and gas
Varra Companies, Inc. correspondence of 30 June 2009 to the Colorado Office of Mined Land Reclamation 9
(Office) in reply to Office correspondence of 12 May 2009 - Heintzelman Project - M2009-018.