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STATE nF ~n1 nRAnn <br />w vr~r~rv yr twwtaAU AND GEOLOGY <br />Department of Natural Resources <br />1373 Sherman 6t., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303)866-3567 <br />fAX: (3031 832-8706 <br />May 31, 2002 <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MI NING•SAFETY <br />Mr. Bill OWens Bill Owens <br />QWenS Br01heIS CODCrete cpmpany <br />~^"`Y' Governor <br />5550 Sheridan Blvd. Greg E. Walther <br /> <br />Arvada, CO 80002 Executive Director <br /> Michael B. Long <br /> Division Director <br />Re: File No. M-2001-OA6, Nia Sand and Gravel Mine, 112c Decision Letter -Conditions, Financial and <br />Performance Warranty Request -Construction Material Operation <br />Dear Mr. Owens: <br />On May 31, 2002, the Division of Minerals and Geology approved yow 112c mining permit application with conditions. <br />The conditions to the approval are noted below: <br />Simulation No. 1 <br />The operator will not mine within 200 feet of any oil or gas structure owned by Patina Oil and Gas Company or <br />the Ken-McGee Company, until a notarized damage agreement with those wmpanies is submitted to DMG. A <br />suitable structural stability analysis can also be submitted in lieu of an agreement, if none can be reached. The <br />agreement or analysis should include the well-head and associated equipment, gathering lines, and the storage <br />tanks and accessories. <br />Stipulation No. 2 <br />The operator will not begin mining until an agreeme~ is reached with the owners of the Side Hill Ditch for the <br />establishment of a new headgate/diversion poi>rt and associated delivery system that will provide an alternative <br />water supply to the Parker wetland. This agreement must be submitted to and approved by the division prior W <br />initiating mining activities. <br />Stipulation No. 3 <br />The operator will not expose groundwater in their mining operations until the State Engineer's Office approves <br />their Gravel Well Permit and their Substitute Supply Plan for augmentation of water lost through the mining and <br />reclamation process. If groundwater is exposed, the operator will be required to post a financial warranty for the <br />cost of backfdling the entire proposed mining area to an elevation of two feet above the static groundwater level. <br />Stipulation No. 4 <br />The operator will implemem the groundwater monitoring system as outlined in the Wright Water Engineers, Inc. <br />Memo dated May 13, 2002. At least one year of data (beginning in fall of 2001) will be collected prior to <br />initiating mining activities at the Nix Sand and Gravel Mine. Based on observation of collected data, an <br />augmentation trigger mechanism will be proposed to DMG and approved by DMG prior to initiating mining <br />activities. Tbis trigger mechanism should be specific with respect to when augmentation would begin, and the <br />augmentation plan should be specific as to volumes of water involved, times of year for delivery, and length of <br />