_GENERAL DOCUMENTS - C1981017 (310)

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COAL BASIN MINE RECLAMATION PROJECTS NARRATIVE The Coal Basin Mine (Permit No. C-81-017) is located in Pitkin County, Colorado, approximately four miles west of Redstone, Colorado. The mine facilities area, consisting of the mine offices, coal processing facilities, Dutch Creek Diversion and coal waste disposal facilities, are located at an approximate elevation of 8, 000 feet in Township 10 South, Range 89 West Sections 11 and 14 . The mine entries are located about three miles west of the facilities area at about 10, 000 feet elevation. The proposed project areas are within the facilities area. The Coal Basin Mine is a series of five mines and an underlying tunnel serviced by a wash plant, two coal waste disposal areas and supporting facilities. The Number 5 mine area has been subject to intermittent coal mining activities since the 1800 ' s. The mine complex began operations in the mid 1950 's. In the 1970 ' s, the mine was issued a reclamation permit by the State of Colorado pursuant to the Mined Land Reclamation Act. After implementation of the Surface Mining Control and Reclamation Act, the mine was issued an interim permit by the Office of Surface Mining Reclamation and Enforcement (OSM) . Colorado issued a mining permit as authorized by the Colorado Surface Coal Mining Reclamation Act in 1983 . The mine ceased operations in January, 1991 and filed for Chapter 11 bankruptcy protection in February, 1992 . The Division of Minerals and Geology is a secured creditor in that proceeding. The Colorado Mined Land Reclamation Board revoked the operating permit in August, 1992 . The Board subsequently forfeited the reclamation bond instrument in September, 1993 . The bond instrument was a first lien on real property located in Garfield County, Colorado. Although the property was appraised to have value in excess of three million dollars, sale of the property netted the State approximately three hundred thirty thousand dollars. The Division of Minerals and Geology is in the process of accomplishing reclamation of the site as required under the approved State regulatory program after forfeiture of the operating permit. The Division is committed to addressing the public safety issues and environmental problems associated with this previously permitted site. Reclamation of the mine site through independent contractors is being funded through the bankruptcy liquidation plan. However, monies provided by the liquidation plan will not be sufficient to fulfill the approved reclamation plan and to mitigate hazards presented by two other mine related disturbances within the mine plan area.