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Minutes, January 22-23, 1992 20 <br /> THURSDAY, January 23, 1992 <br /> Staff Presentation by Dan Mathews: <br /> 16. FORMAL PUBLIC HEARING <br /> MID-CONTINENT RESOURCES INCORPORATED File No. C-81-017 <br /> P. 0. Box 1298 <br /> Glenwood Springs, CO 81602 <br /> All persons wishing to give testimony were sworn. <br /> Mine Site located in Secs. 31 and 32, T9S, R89W; Secs. 5-8, 10-12, <br /> 14-21 and 28-30, T10S, R89W; Sec. 36, T9S, R90W; Secs . 1 , 2, 11-14 and <br /> 23-25, T10S, R90W; Sec. 36, T9S, R90W, all in 6th P.M. , Pitkin and <br /> Gunnison Counties . Rail loadout located in SE 1 /4 Sec. 35, T7S, R88W, <br /> 6th P.M. , Garfield County, 11 ,386 acres ; underground coal . Board <br /> decision regarding Order to Show Cause why permit should not be <br /> suspended or revoked. <br /> The Chairman stated that Board Member Kraeger-Rovey had recused herself <br /> hearing this matter. <br /> Staff distributed EXHIBIT A, a copy of the May 1991 Board Order. In <br /> providing background information, Staff stated that site is located in <br /> Pitkin - and Garfield Counties,. mostly i-n Coal Basin along .tributarie-s. to <br /> -the - Crystal- River: The :"'site - i*s at -ah extremely -:-htgh e1evation,, _ <br /> receives substantial snowfall each winter, undergoes extreme snowmelt <br /> and run-off conditions during the spring and has had a history of <br /> compliance problems. <br /> Staff said the Division believes that a bond slightly under $3 million <br /> would be required to reclaim the site. The operator has provided the <br /> State with a property deed of trust, in order to post the bond; it was <br /> valued at approximately $3.2 million in 1988. Staff said approximately <br /> $250,000 of the bond is in real estate and .approximately $3. 1 million <br /> constitutes improvements to the property, i' icIudi6g.' a limestone <br /> processing facility. Staff said depreciation of the improvements has <br /> rendered the total property value and the improvements questionable. <br /> The Division feels that the value of the property and improvements is <br /> less than what would be required to reclaim the site at this time. The <br /> State is the first lien holder on the property. <br /> Staff said that over the past 1 1 /2 years the following events resulted <br /> in the operator appearing before the Board at its May 1991 Meeting and <br /> the Order issued during that Meeting: a pattern of violations , <br /> determination of deficiencies with the mining and reclamation plans <br /> during a mid-term review of the permit and closing of the mine in <br /> January of 1991 , due to financial problems . Staff said that because of <br /> the 3 events , the Division feels the operator may not be able to <br /> operate the mine and accomplish reclamation, while remaining in <br /> compliance. <br />