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STATE OF C11 <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 />Rr. CF <br />COLORADO <br />D I V I S 10 N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />June 13, 2011 <br />Shauna Hovey <br />Western Gravel, Inc. <br />3001 North Townsend <br />Montrose, Colorado 81416 <br />JUN 15 2011 <br />Division of i?eciamation, <br />tAinirg and Safety <br />Re: Olathe Pit, Permit No. M-1984-108, Division Clarification of Position on Operator's <br />Request for Civil Penalty Modification and Reinstatement of Permit after Revocation, <br />Board Order MV-2011-007. <br />Dear Miss Hovey, <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />This letter is a follow up to our telephone conversation of May 2, 2011 regarding Western Gravel's <br />pending request to the Mined Land Reclamation Board (MLRB) to vacate or modify the civil penalty of <br />$2,800.00 and reinstatement of the revoked reclamation permit as ordered in MV-2011-007. <br />The Division has no formal stance regarding the vacation or modification of the civil penalty imposed by <br />the MLRB. Staff will maintain a neutral position and allow the board and operator to discuss the issue <br />and come to an agreement. <br />Per our conversation two outstanding regulatory actions need to be addressed in regard to re- <br />instatement of the permit. Division staff is willing to support reinstatement of the permit provided the <br />actions are fully addressed by Western Gravel. Those actions are: <br />The need for a Technical Revision (TR) to the Reclamation Plan to address the existing conditions <br />on site to include two ponds and reclamation instead of the one approved. This is an <br />outstanding problem noted on two previous inspections. Staff will ask for a stipulation that <br />Western must submit the TR with all materials and fees necessary for approval no later than 30 <br />days from the date of the board order signature and final approval must be within 60 days of <br />said signature. <br />2. Approval of a well permit for exposed groundwater through the Office of State Engineer (OSE). <br />The groundwater exposure issue has been ongoing since at least 2007. It is understood that the <br />temporary augmentation plan appears to be approved and the well permit is applied for. <br />However, until the well permit is approved a substantial reclamation liability for backfilling <br />exists. The Division will request written monthly updates and copy on all submitted and <br />received documentation between the operator and OSE until the well permit is issued. The <br />Division may increase the bond to $1.2 million dollars, as previously calculated, for importation <br />and backfill of the ponds should the operator fail to submit any information to the Water Court <br />and gain a valid well permit in a timely fashion. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines