2001-04-10_REVISION - M1977493

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 4/10/2001
• Doc Name: Cap Material Installation Cost for Mayflower Pond
• From: DMG
• To: File
• Type & Sequence: SR3
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver,Colorado 80203 D I V
I S I O N O F
Phone:[phone] MINERALS
FAX:[phone] GEOLOGY
ME O
DATE: April 10, 2001 MNI TY
TO: File No. M-77-493 Bill Owens
Governor
Greg E.Watcher
FROM: Allen Sorenson Executive Director
E " Michael B.Long
Division Director
RE: Cap Material Installation Costs for Mayflower Pond, Climax Mine
For the purposes of this memo, the Mayflower Tailing Facility is broken out into three reclamation
areas as follows:
➢ Mayflower Dam Face.
➢ Mayflower Water Pool—this is the area of the tailing facility that would typically be under water
when decant tower bricks are set at their highest operational elevation. The water pool area
fluctuates in size and shape to some extent, but a typical acreage for the pool has been
determined by Climax and the pool has been illustrated on maps prepared by Climax.
➢ Mayflower Beach—this includes all areas of the tailing facility that are not the dam face and are
not included in the water pool.
The Revision 5&-03 application submitted by Climax requests the refund of certain reclamation bond
monies based on the completion of soil and rock cap installation on the Mayflower beach. The Division
of Minerals and Geology (DMG) granted release of reclamation liability for the Mayflower beach
capping requirement with the approval of SR-03. DMG did not release any bond money due to a
finding that Mayflower beach capping costs were not included in the reclamation cost estimate forming
the basis for the amount of the bond. As a part of the SR-03 approval, DMG adjusted the estimated
costs for geogrid installation, filling and capping in the Mayflower water pool. This adjustment was
made based on updated water pool acreage information provided by Climax in the SR-03 application.
Climax has requested that DMG revisit the determination that a refund of bond money is not due for the
completion of the Mayflower beach capping project. What follows is the DMG's analysis.
The current amount of reclamation bond held by DMG for the Climax Mine is $52,365,000.00. This
bond amount is based on the February 1999 reclamation cost estimate prepared for Climax by Fred R.
Banta Inc. and Golder Associates. Page 3.9 of that estimating workbook lists earthwork calculations for
the Mayflower tailing area as follows:
Task: Haul water pool fill to edge of Mayflower Pond and dump in temporary stockpile
Volume: 714,525 cubic yards