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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 />December 11, 2012 <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. Response to December 27, 2011 PAR #1 <br />Dear Mr. Bowles, <br />The purpose of this letter is to respond to the Division's December 27, 2011 PAR No. 1 letter <br />regarding the Technical Revision No. 73 to the Oxbow Mining LLC (OMLLC) Permit No. C- <br />1981 -022. This TR provides for 1) construction and operation by North Fork Energy, LLC <br />(NFELLC) of a coal mine methane fueled electricity generator and thermal oxidation facility and <br />2) relocation of an alluvial monitor well EC -14. <br />1. OGCC Permit - As we noted in our earlier November 22, 2011 letter to the Division, the <br />North Fork Energy LLC (NFELLC) has applied for the COGCC borehole permit and we have <br />committed to providing an update to the PAP upon its issuance. The methane utilization facility <br />will not be placed online until the OGCC permit is issued. <br />2. Division Jurisdiction - Oxbow will "T" off of the current vertical vent stack with control <br />apparatus leading to the Methane Utilization facility. We believe that this will be the most logical <br />location for the Division jurisdiction to end and the Methane Utilization facility to begin. We <br />have updated the PAP page 2.05 -23c, Section P discussion to include this designation. <br />3. Dual Use Facility - We have updated the PAP page 2.05 -23c, Section P discussion <br />regarding the dual purpose use of the gas producing borehole with COGCC. <br />4. Maintaining Operation Venting Capability - As we note in Item #2 above the NFECLL <br />pipeline will "T" off from the current ventilation stack. NFELLC is currently working with <br />engineers to always maintain mine venting capability. NFELLC understands the number one <br />priority of the system is that it must continue to vent hazardous gasses from the mine. The <br />system will contain control system redundancies where the methane not used for the methane <br />utilization facility can always be vented. <br />• Page 1 <br />RECEIVED <br />JAN 1 <br />Division or iteciamation, <br />Mining and Safety <br />