2012-08-09_REVISION - M1992069 - Laserfiche WebLink

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AGGREGATE INDUSTRIES AI has made numerous efforts over the past several years to keep 83 JV advised of compliance requirements and the critical need for them to make decisions and to be prepared to assume their responsibilities as the land owners. After City of Greeley advised AI that the Boyd Freeman shares would not be available to 83 JV for permanent augmentation at the site, Al met with 83 JV to determine how they wanted to proceed. They advised that they are unable to accomplish any of the options to bring the site into compliance with state water laws. As lessor of the site, AI does not legally have authority to make post- mining land use decisions without the property owners' consent. While 83 JV has indicated that AI can make whatever decisions it deems appropriate, it is Al's position that, having fulfilled its obligations for mining and reclamation of the site in accordance with the lease, any reclamation alterations and additional work necessary to bring the site into compliance, together with posting of appropriate bond and performance warranties with DRMS, are legally the obligation of 83 JV. 83 JV's advice that they are incapable of fulfilling any compliance requirements, and therefore their obligations under the lease with AI, creates a complicated situation which will require resolution. AI is currently researching the title to the property to ascertain property ownership and encumbrance issues that may impact its course of action to resolve this matter, including an easement granted by 83 JV to City of Greeley to use the pond area for stormwater drainage which could preclude backfilling of a portion of the pond. In the meantime, DRMS required that a technical revision be submitted to facilitate recalculation and posting of additional bond by Al as the permittee. Al therefore submitted a technical revision based upon backfilling the site to avoid a violation of its DRMS permit, which resulted in a substantial financial warranty increase. This is what prompted my telephone call to you, during which you indicated that, as long as Al maintains the site under its temporary substitute supply plan to mitigate stream depletions associated with the site's exposed ground water, a variance could be approved until such time as the various issues associated with the property can be sorted out and resolved. Based upon DWR's variance, AI will be requesting withdrawal of the DRMS technical revision to backfill the site or that bonding for an increase in financial warranty be waived, again until such time as all legal issues can be identified and resolved. We would therefore request a written validation of DWR's variance in this matter. Michael C. Refer Regional Manager - Environmental and Land Services Cc: Division of Reclamation, Mining and Safety — Tom Kaldenbach and Peter Hays Applegate Group — Jared Dains