1992-03-13_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 3/13/1992
• Doc Name: Status of Rock Dust Plant
• From: Tony Waldron
• To: Mined Land Reclamation Board
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

STATE OF COLORADO
MINED LAND RECLAMATION DIVISION oF c- 0,�9
Department of Natural Resources Ne;5r o
1313 Sherman St.,Room 215 + +
Denver,CO 80203
303 866-356 7 '1876"
FAX. [phone]
Roy Romer,
Governor
Michael B.Long,
Division Director
DATE: March 13, 1992
TO: Mined Land Reclamation Board
FROM: Tony Waldron--Tw
RE: Status of Rock Dust Plant,
Mid-Continent Resources , Coal Basin Mines, File No. C-81-017,
During the February 27, 1992 Mid-Continent Resources Show Cause Hearing, the
Board voiced concerns about the Reclamation Bond held by the Division for the
Coal Basin Mine. The bond is a Deed of Trust for a rock dust plant in
Carbondale, Colorado.
The main concern pertained to the actual value of the plant, its current
condition and ongoing maintenance. The last appraisal was conducted in 1988
when the plant was originally collateralized for the bond. Depreciation _was
not taken into account. Following is some information which may shed some
light on the current condition and operational status of the plant.
The plant is currently producing between 1 ,000 to 1 ,500 tons of rock dust a
month. This product is sold to a variety of Western Colorado coal mines and
utilities for $20-$22/bulk ton and $30-$32/bagged ton. The plant was
operating at a capacity of 2,000-2,200 tons a month when the Coal Basin Mines
were also being supplied. It is believed that the plant could produce 3,000
to 4,000 tons/month if market demand increased. There is also a small amount
of nahcolite bagging occurring at the plant and the potential for other
bagging activities exists as well .
Pitkin Iron operates the plant via a lease from Mid-Continent Minerals for
$3/ton of product sold. Utility costs to run the plant are $8,000 to
$10,000/month for electricity and $5,000/month for natural gas . There are
also five employees for which salary and benefits costs are not known. The
equipment is reportedly being maintained, and is in reasonably good
condition. Raw material is being supplied from the Mid-Continent Quarry,
located near Glenwood Springs , which is owned by Colorado Fuel & Iron and
leased to Mid-Continent Resources for $3 to $4 a ton. A personal inspection
of the plant by the Division is scheduled for March 16, 1992. Results of this
inspection and observations will be conveyed to the Board at its March meeting.