2006-01-23_REVISION - M1977424 - Laserfiche WebLink

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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 C Q L Q Rq D Q Denver, Colorado 80203 DIVISION O F Phone: f303) 8663567 MIN & A I. $ FAX: (303) 832-8106 Ci ) Q L Q G Y RECIA MATION•MINING RECEIVED ~ SgFETY•SCIENCE Bill Owens January 23, 2006 ~ JAN 3 02006 c°Ver"nr Russell George Mr. Franklin Millet ~ pj~wOll~re4rdCeolop~ Ezecuhve Director Occidental Oil Shale, Inc. Ronald w. cattany Division Director C/o Glenn Springs Holdings, InC. Natural Resource Trustee 2480 Fortune Dr., Ste. 300 Lexington, KY 40509 / ~ v Re: Logan Wash, Permit No. M-1977-424, Surety Release No. 1 Approval (SL-Ol), Reclamation Cost Estimate Recalculation and Request for Evaporation Pond and Pipeline Permitting Information Dear Mr. Miller: I am pleased to inform you that on January 12, 2006 the Division of Minerals and Geology (DMG) released Occidental Oil Shale, Inc. from further reclamation responsibility for Areas 6, 8, 9, 12, 14, 15, 16, 17, 19, 20 and a portion of Area 13 (roads). The Mined Land Reclamation Board and the Division staff wish to commend Mesa County for your reclamation efforts and the resulting success. Areas remaining within the permit include 1, 2, 3, 4, 10, portions of Area 13, and the .65 acre topsoil borrow area permitted through Technical Revision No. 7. Previous acreage for Area 13 was based on road surface to reclaim. With additional acreage included for pulling up cast material to backfill against the road cut slope, this figure has been adjusted to an estimated 10 acres and includes the upper and lower access roads and bench access roads. The total remaining affected area is 38.25 acres including the evaporation pond. DMG considers the evaporation pond and pipeline, and various deep and alluvial wells as mining related structures that should be included in the reclamation permit. However, DMG files contain no documentation indicating these features and associated reclamation plans were ever incorporated into the permit. DMG recently received documentation indicating BLM authorization of the evaporation pond and pipeline on August 23, 1984. Please submit documentation, within 60 days of the date of this letter, indicating that these features have been incorporated into the permit, or submit a revision to the permit to add these features and specify the reclamation plans for them. An amendment to the permit may be required if the actual locations were not identified as part of the affected area in the original permit application or subsequent revisions to the permit. Reclamation plans for the pond may prove problematic if discharge to the pond from the mine cannot be terminated. Additionally, if discharge to the evaporation pond meets the definition of acid or toxic producing materials defined in C.R.S. 34-32-103(1) of the Mined Land Reclamation Act, any revision submittal to incorporate the pond into the permit may need to address the requirements of Rule 7 of the Minerals Rules and Regulations. The enclosed reclamation cost estimate was calculated for remaining reclamation responsibility at the Logan Wash site. Costs for well sealing and maintenance and reclamation of the evaporation pond and pipeline have been included in the enclosed estimate to cover estimated costs until their associated reclamation specifics are incorporated into the permit. Please review the reclamation cost calculations and notify DMG as soon as possible of any errors. The estimate indicates that the current reclamation financial warranty is adequate to cover to curcent reclamation liability.