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OXBOW MINING, LLC <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929 -5122 Fax <br />(970)929 -5177 <br />November 22, 2011 <br />Mr. Brock Bowles <br />Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Co. 80203 <br />Re: Oxbow Mining LLC, Permit No. C- 1981 -022 <br />TR -73 Application for Methane Utilization Facility and Relocation of Alluvial Monitor <br />Well. <br />Dear Mr. Bowles, <br />RECEIVED <br />NOV 262011 <br />Division of Reclamation, <br />Mining & Safety <br />The purpose of this letter is to respond to the Division's October 25, 2011 letter regarding the <br />Technical Revision No. 73 to the Oxbow Mining LLC (OMLLC) Permit No. C- 1981 -022. This <br />TR provides for 1) construction and operation by North Fork Energy, LLC (NFELLC) of a coal <br />mine methane fueled electricity generator and thermal oxidation facility (the facility) and 2) <br />relocation of an alluvial monitor well EC -14. The Division has determined the application is <br />incomplete for the purposes of filing. The following information is intended to address the <br />Division's concerns. <br />1. The Division has jurisdiction over surface coal mining activities located within the Permit <br />Area. Many activities in a Permit Area are not surface coal mining activities and are, therefore, <br />not regulated by the Division. In addition, it is interesting to note that Rule 1.04(132)(a) <br />specifically provides that "Surface coal mining operations" do not include the exploration and <br />extraction of natural petroleum in a liquid or gaseous state by means of wells or pipe. The <br />proposed methane facility is considered a component of the "extraction" of the gas resource. <br />Maps 2.05 -M1 and 2.05 -M4 were incorrectly drafted with the subject facility located within the <br />"mine disturbance boundary ". As this facility is being constructed in accordance with the natural <br />gas exemption provided in Rule 1.04(132)(a) the facility does not constitute a Surface Coal <br />Mining Operation. We have provided the attached revised maps showing the facility correctly <br />located outside of the mine disturbance boundary. <br />The location of the facility outside the mine disturbance boundary will result in no increase in <br />mine related disturbed area acreage calculation. <br />• Page 1 <br />