PERMFILE103522

• Permit No: M2004063
• IBM Index Class Name: Permit File
• Doc Date: 2/14/2005
• Doc Name: Financial Warranty
• From: DMG
• To: Hocker Construction LLP and Southwest Land Services Inc.
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman 5t., Roam 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
February 14, 2005
Kirk Allen
Southwest Land Services, Inc.
P.O. Box 2673
Durango, CO 81302
Roy & Glenda Hocker
Hocker Construction LLP
4167 County Road 321
Ignacio, CO 81137 r
l
RE: Financial Warranty fora 112c Application
Hocker Gravel Pit"~ermit No. M-2004-063.
Dear Mr. Allen and Mr. & Mrs. Hocker:
Diejson orMiper~? Z~QS
1 repyoBD
COLORADO
DIVISION O F
MINERALS
GEOLOGY
RECLAMATION•M IN ING
SAFETY•SCIENCE
Bill Owens
Governor
Russell George
Executive Director
Ronald W. Canany
Division Director
Natural Resource Trustee
On February 11, 2005, DMG determined that the above referenced application satisfied the
minimum requirements of a 112c permit and approved the application. However, the permit will
not be issued until DMG receives and approves an appropriately executed financial warranty.
Please find enclosed, two reclamation cost estimations for the Hocker Gravel Pit. Both
estimations attempt to calculate the cost incurred by the State to complete reclamation under a
competitive bid contract. The first estimation, dated February 11, 2005, totaling $26,676,
represents the cost of reclamation for only the first year of operations. The cost estimation for the
first year assumes a total disturbance not greater than 6.5 acres. The second estimation, dated
February 10, 2005, totaling $59,121, represents the cost of reclamation for the entire 19.4 acres
of the Phase 1 area. The estimation for the entire Phase 1 area assumes that contemporaneous
reclamation does not commence until all mining has been completed for the Phase 1 area.
Pursuant to Construction Materials Rule 4.2.1(4), DMG cannot require financial warranty greater
than the estimated cost of reclamation for all lands to be affected in the coming year, plus all
lands previously affected and not reclaimed. Therefore, a financial warranty of not less than
$26,676 is appropriate for permit issuance. However, when operations affect more than 6.5
acres, DMG will increase the required amount of financial warranty accordingly.
Please contact Suzi Ericksen, at the DMG Denver Office, phone [phone], for assistance in
completing the financial warranty forms.
Please contact me at the DMG Durango Office, 701 Camino del Rio, Room 125, Durango, CO
81301, phone [phone], if I can be of greater assistance.
Office of Office of rnl^ra,l^