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I ® Hohne Roberts & Owen LLP <br />Attorneys at Law NOV 15 Z010 <br />DM"n w rieceoft n, <br />iul�r� s>Ital 0�r <br />DENVER Sent Via E -mail and Remular U.S. Mail <br />November 12, 2010 <br />BOULDER Mr. David Berry <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />COLORADO SPRINGS Re: Permit C- 1992 -080; Oakridge Energy, Inc.; Carbon Junction Mine: July <br />30, 2008 Phase III Reclamation Bond Release Application <br />Dear Mr. Berry: <br />DUBLIN Oakridge Energy, Inc. ( " Oakridge ") submitted an application for a <br />Phase III reclamation bond release at the Carbon Junction Mine to the Division <br />of Reclamation Mining and Safety (the "Division ") on July 30, 2008. At our <br />November 4, 2010 meeting with you and Dan Hernandez to discuss the bond <br />LONDON release issue, you informed us that the Division is not yet willing to authorize a <br />full release of the bond because you continue to believe that Oakridge has not <br />"substantially commenced" development of the post mining land use of the <br />mine property, in accordance with Section 3.02.3(c) of the Regulations of the <br />LOS ANGELES Colorado Mined Land Reclamation Board for Coal Mining (the <br />"Regulations").' However, you agreed to reevaluate your position and have <br />requested this letter outlining Oakridge's interpretation of Section 3.02.3(c) of <br />MUNICH the Regulations, its understanding of the scope of the Reclamation Act, and <br />generally, its position with respect to the proposed Phase III release of the <br />reclamation bond for the Carbon Junction Mine. <br />As discussed at our November 4th meeting, we believe that the <br />PHOENIX Division's interpretation of Section 3.02.3(c), and application to the Carbon <br />Junction Mine, does not comport with the language of the Regulations and <br />exceeds the statutory authority granted to the Division under the Colorado <br />Surface Coal Mining Reclamation Act (the " Reclamation Act ").' The <br />SALT LAKE CITY arguments in support of our position are as follows: <br />SAN FRANCISCO <br />' 2 CCR §§ 407 -2 (1.01) to 407 -2 (8.04). <br />2 C.R.S. §§ 34 -33 -101 - 137. <br />Frank Erisman 303.866.0337 frank.erisman @hro.com <br />1700 Lincoln Street, Suite 4100 Denver, Colorado 80203 -4541 tel 303.861.7000 fax 303.866.0200 <br />#1502381 0 den <br />