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USDA °f <br />aim- Dolores Public Lands Office <br />USDA Forest Service 29211 Highway 184 'USDI Bureau of Land Management <br />San Juan National Forest Dolores, CO 81323 San Juan Center <br />Dolores Ranger District Ph (970) 882-7296 Fax (970) 882-6841 Dolores Field Office <br />hftp://www.fs.fed.us/r2/sanjuan hftp://www.co.bim.gov <br />In Reply Refer To: <br />3600 (COS040) <br />COC-073839/065720 <br />January 26, 2010 <br />RELIVED <br />FEB 10 2010 <br />Divilsion of Reclamation, <br />shining and Safety <br />RF <br />J? VF <br />.Our ? ? J ? O <br />,c 0,0 <br />n90 <br />ng°fR cia 2 c <br />CERTIFIED MAIL - Return Receipt Requested: 7009 0820 0000 6804 0013 a d Soei ? h, <br />Robert Dougherty <br />PO Box 1364 <br />Clifton CO 81520 <br />-1 V <br />Re: Cost Recovery and Fair Market Value (Appraisal) Determination for Cedar Point Decorative <br />Stone Quarry <br />Dear Mr. Dougherty, On February 24, 2009 we received your letter requesting a renewal on your mineral material pit, <br />the "Cedar Point" quarry (most recent permit number COCO 065720), located in T45N, R1 8W, <br />Section 25, El/2 SW1/4, (-1.5 acres). BLM is willing to consider your proposal. The serial <br />number of your pending contract is COC-073839. However, before we pursue this matter any <br />further we need to inform you of some issues which have developed since your last contract. <br />These issues are as follows: <br />1) NEPA Adequacy. The National Environmental Policy Act (NEPA) of 1969 requires that <br />the Federal Government analyze the environmental impact of Federal Actions. Your <br />original permit was found to be categorically excluded because of its small size (CO- <br />SJFO-02-034CER). We will need to determine if conditions on the ground still merit <br />this exclusion. If it does, then another contract may be issued under this Categorical <br />Exclusion. <br />2) Your bond will need to be updated to reflect current costs. <br />3) BLM is required by law to sell mineral materials for "fair market value" (43 CFR <br />3602.13). Periodically we re-assess the fair market value and adjust the royalty rate <br />accordingly. The calculated royalty for your stone is estimated to be $15.60 per ton (up <br />from $15.00 in 2003). A copy of the royalty calculation is attached. <br />FS-6200-12a