2011-03-22_REVISION - M2003037

• Permit No: M2003037
• IBM Index Class Name: REVISION
• Doc Date: 3/22/2011
• Doc Name: Notice of surety increase ‎(SI-02)‎
• From: DRMS
• To: United/Oldcastle
• Type & Sequence: SI2
• Email Name: GRM
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215 COLORADO
Denver, Colorado 80203 D I V I s 10 N OF
RECLAMATION
Phone: [phone] MINING
FAX: [phone] Rra-CEI -& -
SAFETY
March 22, 2011 MAR L 8 2011 sill Ritter, .Jr
Governor
Diviciurl v i-?L3lamation,
?y
Peter Kearl [tiiinii'9 Gr,, ?a1e` Mike King
United / Old Castle Executive Director
P.O. Box 3609 Loretta E. Pineda
Grand Junction, Colorado 81502 / Director
J
Re: Haldorson Pit, Permit No. M-2003-037, Notice of Surety Increase, St-02.
Dear Mr. Kearl,
The Division of Reclamation, Mining, and Safety (Division) has conducted a review of the reclamation liability for
the above referenced site. Staff notes that several changes at the site need to be accounted for that were not
previously. A revision in 2006 added a 'concrete batch plant and in 2011 United is setting up an asphalt plant as
well. An inspection on March 2, 2011 notes concrete has been poured for secondary containment for the new
plant. While the necessity of the containment wall is understood it still will be required to be removed as part of
final reclamation and therefore must be accounted for. A demolition task for concrete piers and slabs at the
concrete plant and the containment wall has been added.
The biggest increase is in the area disturbed and establishment of 3:1 slopes as part of final reclamation. The
reclamation estimate from 2004 was based on a total of 18 acres of pit floor and 3.6 of slopes. Based on current
conditions noted in the 2011 inspection the total area for slopes is 10.1 acres and the pit floor is 28.5 acres
including the wash plant area to the east. This brings the total disturbance to 38.6 acres, an increase of 56%.
Obviously the amount of materials needed to establish 3:1 slopes along the entire area and one foot of
overburden on the pit floor is greatly increased. Staff looked at two methods: a) using scraper teams and b)
using truck / loader teams to move the material. While using the trucks was cheaper, the time involved to move
material was unfavorable. The increased costs for the scrapers were nominal when time to complete the task
was evaluated. A copy of the truck / loader estimate is included for reference but is not part of the official
estimate.
In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the
approved reclamation plan, the Division has updated the reclamation cost estimate (copy enclosed). Based on
the current conditions noted above, and inflation since 2003, the estimated reclamation liability is now
$306,730.00. This is an increase of $215,630.00 from the 2004 estimate of $91,100.00. Clearly, the site is
currently under-bonded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act,
adequate financial warranty must be submitted to DRMS within 60 days of the mailing date of this notice.
The due date for submission and acceptance is May 23, 2011.
Office of
Mined Land Reclamation
Ottfce of
Denver • Grand Junction • Durango Active and Inactive Mines