2004-10-08_REVISION - M1987064

• Permit No: M1987064
• IBM Index Class Name: Revision
• Doc Date: 10/8/2004
• Doc Name: Bond Increase
• From: DMG
• To: Sandco Inc
• Type & Sequence: AM1
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1373 Sherman St., Room 275
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
`~ October 8, 2004
Dave Dillon
Sandco, Inc.
PO BOX 4440
COLORADO
DIVISION OF
Fc MINERALS
~ F®~j GEOLOGY
0.ECLAMATION•MINING
O'Y~Sj~ ~~~F ~® SAFETY•SCIENCE
9 w- ` ~^F~-
O/'n ~/~,
,~eja/J _(/f/ Bill Owens
d'PI~. Governor
NG
r~Gp Russell George
Executive Director
Ronald W. Cottony
Division DirecYOr
Natural Resource Trustee
Durango, CO 81302
/-
Re: Sandco Pit, Permit M-1987-064, Amendment AM-O1 Approval, and Bond Increase.
Dear Mr. Dillon,
On Monday, October 4, 2004, this office approved the above-named permit amendment, addressing the
proposed pond east of the Animas River. You will receive a formal approval letter from our Denver
office.
This approval was largely based on hydrologic and fluvial information provided by Mr. Winfield Wright,
that demonstrated streambank stability in the normal annual runoff and 100-year flood events. His letter
of September 28, 2004, combined with the Division's inspection observations aze sufficient to conclude
that the river will not erode into the pit during the 100-year flood. The bases for this determination are:
1. The 100-year flood will not overtop the east bank.
2. The 300-foot setback from the river is sufficient.
3. Though the existing bank armoring may be undercut during the 100-year flood, it will not be
transported by flood waters. Toppling will result in the blocks settling lower to the base of the bank, and
deter further undercutting.
As a small point of clarification, however, it should be noted that there was an apparent typo in Mr.
Wright's September 28, 20041etter. Specifically, in the next to last paragraph, the 6,559-foot elevation
cited should have been 6,569 feet. This is important since that datum is put to critical use in Figures 3 and
4 attached to the letter. The correct elevation (6,569 feet) appears in those figures; this office evaluated
his analysis as adequate and supportive of your proposed operation. Flood plain issues have been
adequately resolved.
As part of the approval of this amendment, this office has estimated the additional bond amount needed to
reclaim the additional disturbance of the phased mining and reclamation. The estimated bond increase is
$13,416, as shown on the attached bond estimate. When combined with the existing bond amount of
$6,800, posted in the form of a letter of credit from Bank of Colorado, the total bond for the entire
operation will be $20,216. You may post the additional amount in any of several forms; please contact
Ms. Suzi Ericksen at our Denver office with any questions or bond form requests.
Office of Office of Colorado