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GCC <br />May 22, 2012 <br />State of Colorado <br />Department of Natural Resources <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />Attention: Marcia Talvitie <br />Re: King I Mine C- 1981 -035 <br />NOV- 2012 -003 <br />Dear Ms. Talvitie: <br />"Safety as a Value" <br />Telephone 970 385 4528 <br />Facsimile: 970 385 4638 <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />On March 21, 2012, NOV CV- 2012 -003 was issued to GCC Energy (GCCE) for using <br />Coal Mine Waste (CMW) from the King II Mine to backfill the King I Mine tipple area <br />highwall and benches. The NOV states that the remedial action required to abate the <br />violation is to dispose of all CMW in compliance with the applicable CDRMS rules on <br />or before May 31, 2012. To accomplish this, the CMW would need to be moved to the <br />existing approved refuse pile. <br />During conversations with CDRMS, Trautner Geotech and GCCE subsequent to the <br />issuance of the NOV, it is our understanding that the Division would be willing to <br />consider allowing GCCE to develop an alternative plan to abate the NOV. This plan <br />would require a Professional Engineer to perform the necessary geotechnical testing, <br />toxicity analysis, hydrology, etc. to verify that the CMW in its current location can <br />meet the performance standards of Sections 4.09.1, 4.09.2, 4.10, and 4.11. If it can <br />be shown that these standards can be met, a Technical Revision would then be <br />prepared and submitted to either allow the existing material to remain in place, or to <br />be modified in such a way as to assure compliance with the regulations. <br />Trautner Geotech has been contracted by GCC Energy to perform the aforementioned <br />evaluation of the site. They have prepared a proposal to perform the geotechnical <br />study, and GCCE has accepted the proposal. <br />Trautner Geotech has indicated that they are able to initiate the study immediately <br />and have the resources to accomplish the testing and reporting without delay. A <br />performance timeline has been established by Trautner, and is included as a separate <br />attachment. <br />GCC Energy respectfully requests that the remedial action necessary to abate the <br />violation be modified to require the submission of a Technical Revision to the Division <br />