Laserfiche WebLink
• <br />.~~ . <br />~ c`: U.S. Department of Energy <br />.. <br />'~ !~' € Grand JunctionOff~ce <br />''d F~ 2597 B 314Aoad <br />~° Grand Junction, CO 81503 <br />FE8 l1 7998 <br />hU. Tom Gillis <br />Colorado Department of Natural Resources <br />Division of Minerals and Geology <br />484 Turner Drit'e <br />Building F, Suite 101 <br />Duran¢o, CO 81301 <br />iii iiiiiiiiuiii iii <br />`DECEIVED <br />AUG 19 1999 <br />-~~ ::.~ ~ of Mineraki & Geology <br />5«bject: New Leaseholder for DOE Lease Tracts C-JD-~, C-SR-13, and C-SR-15 <br /> <br />Dear Mr. Gillis: <br />Tltis is in response to your letters [o Ms. Dorothy Blake and i`1r. toe Baldwin, dated <br />February 5, 1998, concerning Colorado Division of A?inerals and Geology (DMG) Permits <br />No, M-77-248 (C-1D-5 Mine) and M-76-342 (Ellison Mine. C-SR-]3), respectively. <br />Please be advised that all rights, title, and interest in the subject icasc tracts, on which thy: two <br />referenced permits arc located, have been recently assimted from Telluride hiinir,g Company: <br />lnc., to Gold Eagle Mining, Inc. (GEMI). This assigttntent teas approved by the U.S. Dcpanment <br />of Ener;y (DOE) 0!7 February 6, 1998. These assigrurents also transferred all reclamation <br />liabilities associated with t]te three lease tracts to GEMI. GEbil, as pazt of the assignment, <br />provided DOE with zn irrevocable letter of credit for $80,000 (autzroga;e sum) to cover the <br />reclamation liabilities that exist on the tlvee lease tracts (£47,000 for C-ID-S, 522,000 1'or <br />C-SR-l3, aztd $11,000 for C-SR-15). <br />DOE req'ttires a single surety (performance bond, fetter of credit, etc.) per lease tract Tltis sure[}' <br />is all encompassing and covers the reclamation of all environmental disturbances existing on the <br />lease tract as a result of the leaseholder's (or prior leaseltolder's) minin3 and e>:ploratiott <br />activities. Eaclt lease agreement specifies the amount of surety required for that particu.ar lease <br />tract. Tlris atttount can increase to cover new or expanded opcrztions, or decrease as operations <br />cease and si[es are reclaimed. Each lease agreement also : equires the leaseholder to curnply with <br />all applicable statutes and regulations, including those required by Colorado DMG. <br />The irrevocable letter of credit provided by GEMI will be held by DOE until it is either replaced <br />with another sureq~ of equal value, or the reclamation activities covered by die surety ate <br />performed to [he satisfaction of all applicable federal and state zgencies. <br />Gn the basis of tltc aforententictted lease nssienntents and DGE's receipt of GEMI's irr~:v'ocabie <br />lever of credit, DOE is in the process of releasie; all previous leaseholders and ether entities <br />200® S2I3-~3.L'?VK OSC9 8~L OL6~ SC:Ci 66i!Ii80 <br />