Laserfiche WebLink
STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />April 23, 2010 <br />Mr. Robert C. Willits <br />President <br />7 Willits Company, Inc. <br />P.O. Box 825 <br />Cheyenne, WY 82003-0825 <br /> <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Alma Placer, Permit No. M-1985-029, Response to request for adjustment to Financial <br />Warranty, Succession of Operator SO-3 <br />Dear Mr. Willits: <br />We reviewed your request for adjustment to the Financial Warranty for the Alma Placer Mine that was received in <br />our office 05 April 2010. Although we are not in complete agreement, our review indicates that some adjustment can <br />be made. Bear in mind that DRMS estimated costs may be substantially different than Operator estimates, because <br />DRMS must account for a scenario that involves reclaiming a site under worst case conditions in which the Operator <br />has abandoned the site while in the midst of production. DBMS is able to make the following adjustments: <br />Since the crusher, screen plant, conveyors, and trailers are mobile, the costs for removing those items have <br />been downscaled to a demobilization scenario. <br />DRMS assumes that an interested party will salvage the unused fuel, so that cost has been eliminated. <br />However, we realized that we had neglected to include in the original estimate the cost for disposal of the <br />tanks, so that cost has been added. <br />DRMS is unable to reduce the estimated costs for the truck scale, the wash plant, the pipe, or the waste oil <br />removal. <br />The adjusted estimated cost for the demolition/disposal task of the gravel operation at the Alma Placer mine is <br />$15,803, and in turn the adjusted total for the gravel operation is $74,075. Adding to the cost of $106,899 for the <br />gold mining side, the total required Financial Warranty for the Alma Placer mine is now $180,974. Unless an <br />extension is granted, the Successor Operator has until 5 May 2010 to provide the balance due on the Financial <br />Warranty, or the Succession of Operator application will be denied and the responsibility for providing the balance <br />of the Financial Warranty will fall to the current Operator. <br />Feel free to contact me with questions at (303) 866-3567 x8108. <br />Sincerely, <br />a/,,/ <br />David Bird <br />Environmental Protection Specialist <br />cc: Benjamin Miller - Alma Placer Company LLC Tony Waldron, DRMS <br />Paul Ducommun, Ducommun Business Trust Elizabeth Merry, DRMS <br />Greg Lewicki - Greg Lewicki and Associates <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines