_GENERAL DOCUMENTS - C1981017 (311)

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STATE OF COLORADO MINED LAND RECLAMATION DIVISION of Coro Department of Natural Resources ea7ii`�'lo 1313 Sherman St.,Room 215 Denver,CO 80203 303 866-356 7 #+1876 FAX. 303 832-8106 Roy Romer, Governor Fred R.Banta, Division Director March 4, 1991 Mr. Robert Hagen, Director Albuquerque Field Office Office of Surface Mining Reclamation and Enforcement 625 Silver Avenue, S.W. , Suite 310 Albuquerque, New Mexico 87102 RE: Status of Mid-Continent Resources Coal Basin Mines (File C-81-017) Dear Mr. Hagen: The purpose of this letter is to respond to your correspondence of February 14, 1991 regarding concerns about Mid-Continent Resources Coal Basin Mines . BONDING Coal production operations at the Coal Basin Mines have been temporarily suspended. It is our understanding that the on-site coordinator has been retained to effect environmental compliance. The coordinator will continue to function as the on-site contact with CMLRD. With regard to utility services, CMLRD has been apprised that the services directly related to safety and environmental compliance will be maintained. The Division currently holds a deed of trust in the required amount of $3 ,000,000.00 as reclamation bond for the Coal Basin Mines. During the Mid-Term Review the Division preliminarily calculated the liability for the operation to be $3 ,500 ,000.00 . The permittee has been notified of this possible increase via the Mid-Term Review. In the Mid-Term Review, we advised the permittee that it will be necessary to provide a new appraisal of the property to ensure that the form and substance of the bond is adequate. The Forest Service was consulted during the Mid-Term Review and is providing additional input with regard to the road issues at this site. Their comments will be addressed in terms of both permit requirements and potential bonding impl ications.