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ti _,~.~r.~r nF '•~ ~'. .. _ '` .i~', ~ ~F U.S. Department of Energy Grand Junction Office 2597 B?a Road Grand Junction, CO 81503 ~II ~I~~I~~I~~~~~'ll 999 • ~Cceived AUG ,' 0 1998 DENVER pFFICE Mr. Curt Sealy, Manager BLIC FILE COP Umetco Minerals Corporation FILE: ~/ P.O. Box 1029 M`78-;~z Grand Junction, CO 81502 SIrE: ~L~,-son M- Subject: Reclamation of Burro Tunnel Site, DOE Lease Tract C-SR- Reference: GENII Letter to Tony Bates dated May 29, 1995 Dear Mr. Sealy: AUG 2 4 1998 ~-'isi~ o ~~ ials 3 t;eolo9Y FECEIVED AUG 2 61998 DIV. OF MINERALS 8 GEOLOGY In response to the referenced letter, Mr. Tony Bates of your staff recently informed this office [hat Umetco Minerals Corporation (Umetco) intends to proceed with the full reclamation of the Burro Mine Complex, including the Burro Tunnel, located at Slick Rock, Colorado. The Burro Tunnel portal and approxitnately 850 feet of drift is located on U.S. Department of Energy (DOE) Mining Lease No. AT(OS-1 ~N1L-60.8-C-SR-13 and has been used in the past to access lease tract ore reserves located in the northern portion of the lease tract. In the referenced letter, Gold Eagle Mining, Inc. (GENII), current leaseholder for C-SR-13, expressed an interest in negotiating with Umetco for the rights to reopen and utilize the Burro Tunnel site for continued access to additional lease tract ore reserves in the area. Having been declined by Umetco, GEMI requested that DOE intervene on its behalf to preserve the Burro Tunnel for future use. The quit claim deed that transferred title of the surface rights to 160 acres of land located within Lease Tract C-SR-13, from the United States of America to Union Carbide Corporation, stated in part that: "All mir:erals crnd mineral rights are excep[ed and resen•ed to the United States together tivith reservation of right to trsc of so mirch of the srrrjace as may 6e required far the conduct of mineral development mrd mining operations. " On the basis of this statement, DOE, on behalf of the United States of America, herein declares and makes known its excepted right to utilize the Burro Tunnel site as the most practicable access to lease tract ore reserves located in the norther portion of Lease Tract C-SR-13. Accordingly, Umetco is hereby directed [o take the following actions with regard to its reclamation of the Burro Mine Complex.