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James B . Holden <br /> Page 2 <br /> The "likely" post-mining use of the property to which you <br /> refer is presumably the proposed development plan created by <br /> Resources. This plan involves building home sites and having <br /> recreational activities on the mine site. It is my understanding <br /> that local approval for this development has not been obtained <br /> and will not be obtained for quite some time . Consequently, <br /> Resources, development plan is in conceptual form and is far from <br /> being finalized. It is, therefore, premature for the Division to <br /> evaluate whether changes to the reclamation plan can be made to <br /> accomodate the development plan. The Division is responsible for <br /> ensuring that statutory and regulatory requirements are met . The <br /> Division cannot agree to change reclamation requirements based on <br /> a proposed development plan that may change in the future or may <br /> not be approved by the county. <br /> At this time, then, the Division will proceed with the <br /> reclamation plan as currently drafted. The Division appreciates <br /> the efforts being made by Resources, Minerals, and Sanwa to <br /> ensure that funding for reclamation occur under the liquidation <br /> plan. The Division shares the goal of obtaining sufficient funds <br /> to meet reclamation requirements at the site. However, without a <br /> finalized development plan, the Division is unable to consider <br /> changing the reclamation plan. The Division is amenable to <br /> working with Resources in the future to attempt to reconcile the <br /> goal of reclamation with the goal of a finalized development <br /> plan. <br /> It should also be noted that there is a concern by the <br /> Division regarding the facilities area. There is reason to <br /> believe that this area may be polluted with volatile organic <br /> compounds . Thus, in addition to the above concerns, before any <br /> consideration can be given to the needs of the development plan, <br /> the Division must determine what is involved in the reclamation <br /> of the facilities area. <br /> A few other issues are of note. You have requested based on <br /> the loan proposal that the Division agree with Resources <br /> concerning what credit is to be given to the prior reclamation <br /> work that has been performed. As you are aware, Pitkin Iron has <br /> filed an administrative claim for reclamation work it states it <br /> has performed on behalf of Resources . This claim is still <br /> pending. It is, therefore, difficult to come to an agreement on <br /> this issue . <br /> In addition, the last accounting received from Louis <br /> LaGiglia which provides what he considers to be the credit to be <br /> given for prior reclamation work, states that $68, 000 has been <br /> given to the Division from a land exchange deal . However, the <br /> Division has yet to receive this money. Is there a reason for <br /> the delay in distribution? Please advise. <br />