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• iii iiiiiiiuiiu iii • <br />it ~ ~ ~ OF <br />COLORADO <br /> <br />DIVISION OF MINERALS AND GEOLOGY _ <br />Deparlmem of Natural Resources <br />111 }Sherman St., Room 215 {~ <br /> <br />Denver, Colorado H0203 ~ <br />~ <br /> <br />Phnnr: (303) Nbfi~3567 I <br />FAY: 111111 H}[-H106 <br /> DEPARTMENT OF <br /> NATURAL <br />January 21, 1998 RESOURCES <br />Gregory D Thomas cOVe nmoer <br />Hunt Limousin Ranch lame, s. tncnneaH <br />43160 County Road 17-21 Evecmive Direoor <br />Elizabeth CO 80107 A+ichael e. t^^F <br /> Drvisron Dnearn <br />Re: Technical Revision, Miller Pit, M-82-112 <br />Dear Mr Thomas: <br />The Division received your written waiver to a thirty-day decision of the referenced technical revision so <br />you can resolve the water rights issues before the Division approves the T.R. <br />As you noted, if the Water Court approves the decree there will be no need to backfill the water pond <br />which, therefore, means there will be no need to increase the financial warranty requirement (except as <br />noted below). <br />As you stated in the T.R., the State Engineer approved a substitute water supply plan authorizing a <br />maximum one-acre groundwater pond. You also state that approval of T.R b2 allowed 1.0 acre for <br />settling ponds but that the current dimensions of these ponds are not expected to change for the duration <br />of mining activity. The areal extent of the existing settling ponds is about 0.2 of an acre (based on the <br />dimensions you provided). If you intend [o expand the ponds to 1.0 acre, the bond will have to be <br />increased. <br />The financial warranty requirement was recalculated based on the statements you made in the T.R. First, <br />if [he water pond and settling ponds are not going to be expanded, and the water pond does not have to <br />backfilled, the bond will not have to be increased. Second, if the water pond and settling ponds are <br />expanded, but the water pond does not have to be backfilled, the bond will be increased to $34,803.00. <br />Third, if the water pond and settling ponds are not expanded, and all three structures have to be <br />backfilled, the bond will be increased to $33,580.00. Founh, if the water pond and settling ponds are <br />expanded, and all three structures have to be backfilled, the bond will be increased to $46, 117.00. <br />As you can see, there are three (3) different conditions that could increase the bond. Unless you commit <br />to a specific condition, the Division will set the financial warranty requirement for the worse case. This <br />would involve a I.0 acre water pond and 1.0 acre for the settling ponds. <br />If you have any questions, please give me a call. <br />