2003-03-11_REVISION - M1986104 - Laserfiche WebLink

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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: D03) 832-8106 March 11, 2003 Jason Burkey B&B Excavating, Inc. P.O. Box 1729 Edwards, Colorado 81632 v Re: Montgomery Pit, Permit No. M-1986-104, Financial Warranty Increase (SI-01). Dear Mr. Burkey: ~~ DIVISION OF MINERALS GEOLOGY RECTA MATION MINING•SAFETY Bill Owens Governor Greg E. Walther Executive Director Ronald W. Cottony Acting Division Wrec[or In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-bonded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. As noted in the inspection report for the 03/05/03 inspection (enclosed-, there are issues with the approved Mining and Reclamation Plan verses actual site conditions. A Technical Revision (TR) will be necessary to correct the discrepancies. Both the increase in Financial Warranty and TR will be due on or before 5/12/03. Staff estimates the costs to reclaim this site at 583,830.00. This is an increase of $63,330.00. The increase is due to several factors, the biggest being that the approved plan called for phasing, which was not followed. Also, as B&B is aware, there have been dramatic increases in the costs of materials and equipment use since the fast update was done in 1993. The Division tries to update cost on a more regular basis to soften inflation increases, but this site was not done for reasons unknown to staff.