_GENERAL DOCUMENTS - C1981017 (233)

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STATE OF COLORADO MINED LAND RECLAMATION DIVISION of cow Department of Natural Resources �� P9 y�% 1313 Sherman St., Room 215 O**n wAy Denver,CO 80203 303 866-3567 `�e7e i FAX. 303 832-8106 Roy Romer, Governor December 16, 1991 Fred R.Banta, Division Director Mr. Lane Wyatt Water Quality Manager Northwest Colorado Council of Governments 409 Main Street P.O. Box 739 Frisco, Colorado 80443 RE: Coal Basin Mine (File C-81-017) Dear Mr. Wyatt: I would like to take this opportunity to discuss three issues regarding the Coal Basin mine site. These issues are the Settlement Agreement, road reclamation and the relationship between Mined Land and the Forest Service. The Colorado Mined Land Reclamation Board has adopted a settlement agreement between the Mined Land Reclamation Division and Mid-Continent Resources, operator of the Coal Basin mine. The agreement requires that Mid-Continent sell the mine and transfer the permit to an operator capable of posting an adequate bond and performing site reclamation in accordance with the Act. If Mid-Continent is unable to sell the mine and transfer the permit by January 15, 1992, the company must provide evidence of their financial ability to reclaim the site. This demonstration must be made by January 15, 1992. Also on that date, a plan describing final reclamation of the property must be submitted. If Mid-Continent provides these materials, reclamation of the site by Mid-Continent will begin in May of 1992, as outlined in the Settlement Agreement. Alternatively, if Mid-Continent is unable to make the required showings, the Board shall revoke the permit and forfeit the reclamation bond on January 23, 1992. If this were to occur, the Division would liquidate the bond and initiate site reclamation utilizing a third party contractor. Regardless of the permit status , stabilization of the Coal Basin site during 1992 is a high priority for the Division. During an intensive site evaluation in the summer of 1991 , we determined that roads and mine bench outslopes were primary factors leading to sediment generation. As a result, we have required that Mid-Continent take corrective actions to stabilize the roads and road cuts and to better handle road drainage.