2011-03-25_REVISION - M1977170

• Permit No: M1977170
• IBM Index Class Name: REVISION
• Doc Date: 3/25/2011
• Doc Name: Notice of surety increase ‎(SI-02)‎
• From: DRMS
• To: Butala Construction Co.
• Type & Sequence: SI2
• Email Name: GRM
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources `--41C>3111h?
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
March 25, 2011
Frank Butala
Butala Construction Co.
P.O. Box 907
Salida, Colorado 81201-9519
CEIV
MAR 'L$ 2Oil
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Re: Butala Pit, Permit No. M-1977-170, Notice of Surety Increase, SI-02 Y
Dear Mr. Butala,
COLORADO
DIVISION OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Mike King
Executive Director
Loretta E. Pineda
Director
The Division of Reclamation, Mining, and Safety (Division) has conducted a review of the reclamation liability for the above
referenced site. An inspection was done on March 15, 2011. It is noted that mining is almost completed and reclamation
has started on Phase 1. Butala wishes to move onto Phase 3 sometime in the very near future. As you are aware based on
current conditions and the desire to move into the next phase there is a transitional period where reclamation is moving
forward and new disturbances are created. This facilitates the reclamation liability take into account where the site is and
where it projected to be. Therefore, the Division updated the current reclamation liability giving credit for tasks completed
in Phase 1 and the anticipated expansion into Phase 3.
The last reclamation estimate was done in 2004. Based on current conditions noted in the 2011 inspection the total area
disturbed still is holding at roughly 34.6 acres. Therefore, those tasks associated with revegetation and areas to remain
disturbed were merely updated. The sloping in Phase 1 was removed but topsoiling and reveg tasks remain unchanged and
were updated as well. Phase 3 will begin being disturbed soon. Once reclamation is completed in Phase 1, those tasks can
be removed and the liability reduced if Butala wishes. Staff updated equipment to more efficient sizes which actually
reduced the costs on many tasks. Increases in seed costs and fuel appear to be the major reasons for cost increases in
revegetation tasks and mobilization.
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 2004, the estimated reclamation liability is now $143.158.00. This is an increase of
$25.658.00 from the 2004 estimate of $117,500.00. 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 of new documents is May
24, 2011.
If you need additional information, please contact me at the Division of Reclamation, Mining, and Safety, Grand Junction
Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117.
Sincerely,
rG. Russell Means
t
Environmental Protection Specialist
Office of
Office of
Mined Land Reclamation Denver Grand Junction • Durango Active and Inactive Mines