_GENERAL DOCUMENTS - C1981017 ‎(311)‎

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Name: Bid Documents ‎(IMP)‎
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

A
t STATE OF COLORADO
MINED LAND RECLAMATION DIVISION of co
Department of Natural Resources
1313 Sherman St., Room 215 \
Denver,CO 80203 * *
303 866-3567 1876
FAX: [phone]
Roy Romer,
Governor
Fred R.Banta,
July 17, 1991 Division Director
Mr. Michael Mechau
Route #1
3542 Front Street
Palisade, CO 81526
Re: Mid-Continent Resources, File No. C-81-017 (Public Correspondence)
Dear Mr. Mechau:
This letter is in response to your letter of July 12, 1991 , in which you
requested information in regard to Mid-Continent Resources.
1 . The Division issued a Midterm Review letter on April 24, 1991 . A copy of
that letter is enclosed. Mid-Continent' s initial response to the
Midterm Review was submitted as Technical Revision (TR) 19 on June 28,
1991 . That document is on file for public review at the Division office
and at the Pitkin County Courthouse in Aspen. A second technical
revision response addressing Midterm Review items 5a, 5b, 5d and 5j is to
be submitted as a separate TR no later than September 1 , 1991 .
• Item 6 of the Midterm addressed the road/portal bench
stabilization/reclamation issue which was incorporated into the
Settlement Agreement. Three USFS/MLRD joint inspections have been
scheduled for July and August, 1991 to evaluate these issues and allow
for the development of joint agency recommendations .
2. The most recent appraisal of the limestone plant which is the collateral
for the reclamation bond was done in 1988 when Mid-Continent' s permit was
renewed. A copy of that appraisal is enclosed.
3. The limestone plant is not within the Coal Basin permit area or any other
mine permit area and the state therefore does not hold a bond for that
property.
4. Based on the currently approved reclamation plan, the reclamation cost
estimated by the Division as a part of the Midterm Review is $2,993,000.00.
We currently hold a $3,000,000.00 collateral bond. It is quite possible
that reclamation plan revisions required as a result of the Midterm Review
and the USFS/MLRD joint inspections will increase the estimated cost of
reclamation and necessitate an increased bond amount. If this is the case
and Mid-Continent does not post the additional bond amount, the Division
will recommend permit revocation at the January, 1992 Board meeting,
pursuant to the Settlement Agreement. If the bond is forfeited and the
amount is inadequate to perform the reclamation, the Division would
initiate appropriate legal action to recover the necessary amount.