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COAL BASIN MINE RECLAMATION PROJECT NARRATIVE <br /> The Coal Basin Mine (Permit No. C-81-017) is located in Pitkin County, Colorado, approximately <br /> four miles west of Redstone, Colorado. The mine facilities area, which consisted of the mine <br /> offices, coal processing facilities, Dutch Creek Diversion and coal waste disposal facilities, is <br /> located at an approximate elevation of 8,300 feet in Township 10 South, Range 89 West Sections 11 <br /> and 14. The mine entries were located three miles west of the facilities area at about 10,000 feet <br /> elevation. The proposed Project Area is located within the facilities area. <br /> The Coal Basin Mine consisted of five underground mines and an underlying tunnel. The mining <br /> operations were serviced by a wash plant, two coal waste disposal areas and supporting facilities. <br /> Portions of the mine area had been subject to intermittent coal mining activities since the 1800's. <br /> The modern mine complex began operations in the mid 1950's. In the 1970's, the mine was issued a <br /> reclamation permit by the State of Colorado pursuant to the Mined Land Reclamation Act. After <br /> implementation of the Surface Mining Control and Reclamation Act, the mine was issued an interim <br /> permit by the Office of Surface Mining Reclamation and Enforcement (OSM). Colorado issued a <br /> mining permit as authorized by the Colorado Surface Coal Mining Reclamation Act in 1983. <br /> Mining operations ceased in January 1991, and the operator filed for Chapter 11 bankruptcy <br /> protection in February 1992. The Division of Minerals and Geology is a secured creditor in that <br /> proceeding. The Colorado Mined Land Reclamation Board revoked the operating permit in August <br /> 1992. The Board subsequently forfeited the reclamation bond instrument in September 1993. The <br /> bond instrument was a first lien on real property located in Garfield County, Colorado. Although <br /> the property was appraised to have value in excess of three million dollars, sale of the property <br /> netted the State approximately three hundred thirty thousand dollars. <br /> The mine operators liquidation plan, which was approved by Federal Bankruptcy Court, allocates a <br /> total of$3 million in cash and services to Colorado for the purpose of fulfilling the value of the <br /> reclamation bond. Colorado anticipates expenditure of the cash received in fulfillment of the <br /> approved reclamation plan. It is not anticipated that there will be a remaining balance in the <br /> reclamation fund after completion of reclamation operations. <br /> The Division of Minerals and Geology is in the process of accomplishing reclamation of the site as <br /> required under the approved State regulatory program. As such, the Division is committed to <br /> addressing the public safety issues and environmental problems associated with this previously <br /> permitted site. <br /> Reclamation of the mine site via independent contractors is being funded through the bankruptcy <br /> liquidating plan. However, monies provided by the liquidating plan will not be sufficient to fulfill <br /> both the approved reclamation plan, and to mitigate an instability hazard presented by a portion of <br /> the Old Refuse Pile. Mitigation of this hazard is not addressed in the reclamation plan. <br /> The project proposed to be undertaken by Colorado with monies derived from civil penalty funds <br /> provided by OSM is the remediation and reclamation of a portion of the Old Refuse Pile adjacent to <br /> 1 <br />