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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, consisting of the mine offices, coal <br /> processing facilities, Dutch Creek Diversion and coal waste disposal facilities, are located at an <br /> approximate elevation of 8,000 feet in Township 10 South, Range 89 West Sections 11 and 14. The <br /> mine entries are located about three miles west of the facilities area at about 10,000 feet elevation. <br /> The proposed project area is located within the facilities area. <br /> The Coal Basin Mine was a series of five mines and an underlying tunnel serviced by a wash plant, <br /> two coal waste disposal areas and supporting facilities. A portion of the mine area has been subject <br /> to intermittent coal mining activities since the 1800's. The mine complex began operations in the <br /> mid 1950's. In the 1970's, the mine was issued a reclamation permit by the State of Colorado <br /> pursuant to the Mined Land Reclamation Act. After implementation of the Surface Mining Control <br /> and Reclamation Act, the mine was issued an interim permit by the Office of Surface Mining <br /> Reclamation and Enforcement (OSM). Colorado issued a mining permit as authorized by the <br /> Colorado Surface Coal Mining Reclamation Act in 1983. <br /> The mine ceased operations in January 1991 and filed for Chapter 11 bankruptcy protection in <br /> February 1992. The Division of Minerals and Geology is a secured creditor in that proceeding. The <br /> Colorado Mined Land Reclamation Board revoked the operating permit in August 1992. The Board <br /> subsequently forfeited the reclamation bond instrument in September 1993. The bond instrument <br /> was a first lien on real property located in Garfield County, Colorado. Although the property was <br /> appraised to have value in excess of three million dollars, sale of the property netted the State <br /> approximately three hundred thirty thousand dollars. <br /> Mid-Continent Resources liquidation plan, which was approved by the Federal Bankruptcy Court, <br /> allocates a total of$3 million in cash and services to Colorado for the purpose of fulfilling the value <br /> of the reclamation bond. Colorado will expend the cash received in fulfillment of the approved <br /> reclamation plan at the Coal Basin Mine. It is not anticipated that there will be a remaining balance <br /> in the 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 after forfeiture of the operating permit. The <br /> Division is committed to addressing the public safety issues and environmental problems associated <br /> with this previously 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 /> the approved reclamation plan and to mitigate the hazard presented by the Old Refuse Pile <br /> instability. Mitigation of this hazard is not addressed in the reclamation plan. <br /> 1 <br />