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The Parsons Mine, File No. M- 2009 -082, was inspected by Peter Hays with the Division of Reclamation, Mining <br />and Safety (Division) as required by the Transfer of Permit and Succession of Operators process and Rule 1.12. <br />Mrs. Julie Mikulas with Martin Marietta Materials, Inc. was present during the inspection. The site was <br />previously inspected by the Division on December 28, 2009. <br />On January 3, 2012, Martin Marietta submitted a Transfer of Permit and Succession of Operators Application <br />Form (SO -01) and selected Option B. By selecting Option B, Martin Marietta choose to not waive their right to <br />a 30 -day processing period and was required to submit a replacement Financial Warranty for the same dollar <br />amount maintained by the current Operator ($15,300.00). On February 1, 2012, the application was deemed <br />complete following the submittal of the appropriate financial and performance warranties. The Division <br />approved the Transfer of Permit and Succession of Operators for the Parsons Mine on February, 15, 2012. <br />Martin Marietta is now the permitted operator of the Parsons Mine and Lafarge West, Inc. has been released <br />from reclamation responsibility at the site. <br />Gen. Compliance With Mine Plan: <br />The site is undisturbed by mining activity. The site is not expected to be mined for several years and is <br />currently used for agriculture, livestock and oil and gas development. <br />Hydrologic Balance: <br />The long -term groundwater augmentation plan for the site has not been address by the Operator. The <br />Operator will need to comply with the Division's letter dated April 30, 2010 addressing operations with <br />exposed groundwater prior to exposing groundwater at the site. <br />Financial Warranty: <br />The Division is required to recalculate the required reclamation bond within 60 -days from the date of the <br />transfer is completed (April 15, 2012). The Division currently holds a reclamation bond in the amount of <br />$15,300.00. The bond was set as a place holder bond which would cover the Division's indirect cost of permit <br />revocation, financial warranty forfeiture and site maintenance cost. Martin Marietta agreed to comply with <br />the current permit stipulation regarding the financial warranty structure at the site, but may readdress the <br />issue prior to commencing mining. <br />The permit stipulation states: <br />OBSERVATIONS <br />Prior to affecting any land within the permit area, the Operator shall submit and receive approval from <br />the Division of a financial warranty that will cover the cost to reclaim one year's worth of disturbance. <br />The Operator will not be allowed to expose ground water until enough financial warranty has been <br />submitted and approved by the Division to account for the exposure of ground water for a year's worth <br />of mining. Every year for the life of the permit, within the annual report the operator must submit <br />information necessary to determine the financial warranty. This information shall include but will not <br />be limited to: <br />1.) The Operator's estimate of the financial warranty. <br />2.) Amount of current affected land. <br />3.) An estimate of the amount of land to be affected in the next year. <br />PERMIT #: M- 2009 -082 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: March 23, 2012 <br />Page 2 of 3 <br />