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Page 6 of 8 <br />TETRA TECH Mr. Peter Hays <br />April 29, 2011 <br />6.4.12 Exhibit L - Reclamation Costs <br />29. The Applicant states 29.1 acres of land will be revegetated with the upland seed mix. In Exhibit E, <br />the Applicant provided a seed mixture for the transitional zone/water's edge. Please provide the <br />estimated acreage to be reseeded with the transitional zone seed mixture. <br />The estimated acreage of land to be reseeded with the transitional zone seed mix is 2 acres. <br />30. The proposed mining and reclamation plans for the site includes dewatering of the pits, the bond <br />calculation for the site should include costs related to dewatering of the pit to account for the costs <br />incurred by the state if water had to be removed from the pit in order to establish the proper reclaimed <br />slopes along a pit wall. Please include an estimate for the dewatering activities in the financial <br />warranty estimate. <br />We updated the Exhibit L cost estimate spreadsheet (see Attachment 10) to include a dollar amount <br />to dewater. For the estimate, we assumed the pit would need to be dewatered for 9 months at a cost <br />of $4, 000 per month. To arrive at this estimate, we assumed the pit would be filled with water and <br />that it would take 6 months to dewater the pit and then another 3 months of continued dewatering <br />during site reclamation work. <br />31. The Division will estimate the cost to reclaim the site based on the information submitted once the <br />Applicant addresses the concerns noted in this letter. <br />In addition, the Division will include costs to comply with the Office of the State Engineers <br />requirement for out-of-priority groundwater depletions. The reclamation plan proposes 44.1 acres of <br />open ground water will remain after the site is reclaimed. Lafarge or the landowner must obtain a <br />court approved augmentation plan from the Office of the State Engineer. The Division is required to <br />set the financial warranty at a level which reflects the actual current cost of fulfilling the conditions of <br />the Reclamation Plan per Rule 4.2.1(1). Therefore, without an augmentation plan in place the <br />financial warranty must be set at an amount which accounts for the exposed groundwater. The <br />Division has identified several options for determining the amount of the financial warranty. The <br />Applicant must choose one of the following options to be included in the financial warranty <br />calculation: <br />a. Backfill all of the pits to two feet above the groundwater level. <br />b. Install a slurry wall or clay liner. <br />c. Provide the Division with documentation from SEO, which demonstrates the Applicant owns a <br />sufficient amount of shares of water to cover the evaporative losses from the exposed <br />groundwater and the said shares have been committed to the SEO should the financial warranty <br />forfeited and the permit revoked. <br />If the Applicant obtains an augmentation plan prior to final release, then the financial warranty will be <br />adjusted accordingly. <br />Lafarge is working on deciding which option they will follow; we will notify the DRMS once a decision <br />is made. <br />6.4.13 Exhibit M - Other Permits and Licenses <br />32. Please commit to providing the Division with of the approved permits and licenses required at the <br />Iverson Mine. <br />Lafarge will provide the Division with copies of the approved permits and licenses required to operate <br />the Iverson Mine.