1993-11-15_PERMIT FILE - C1981017 ‎(2)‎

• Permit No: C1981017
• IBM Index Class Name: Permit File
• Doc Date: 11/15/1993
• Doc Name: Request for federal Intervention ‎(Part 2 of 2)‎
• Media Type: D
• Archive: No

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,Director
Colorado Mined Land Reclamation Division
'0.313 Sherman Street
"Denver, Colorado 80203
Director
Office of Surface Mining
625 Silver Avenue SW
Suite 310
Albuquerque, New Mexico 87102
RE: Mid - Continent Resources
Permit Violation
File #C- 81 -01F
COMPLAINT:
November 15, 1991
Contrary to requirements of law, the reclamation bond
put up by Mid - Continent Resources is grossly inadequate to cover
the costs of reclamation.
According to the MLRD Midterm Review finalized in April
1991, the Division holds a reclamation bond for the Coal Basin
mines in the amount of $3,000,000 in the form of a Deed -of -Trust
to real property. The real estate appraisal of the property
which the Division relies upon is dated May 19, 1988. According
to that appraisal (done by Applegate & Company), the value of
the property at that time was $3,340,000. Adjusting that figure
for 3 -1/2 years of depreciation (from 5 -19 -88 to 11- 19 -91),
however, the estimated current value is only about $2,376,000 -
far short (over $600,000 short) of the $2,993,000 cost of
reclamation estimated by the Division. The shortfall will be
significantly greater if unpaid back taxes are considered.
I hereby request that the Division take immediate
action to require Mid - Continent Resources to post additional
bonds forthwith.
.
I further ask that OSM issue a Ten Day Notice to the
Division to assure enforcement action is taken as soon as
possible. This is in consideration of the fact that the