PERMFILE112274

• Permit No: M1997089
• IBM Index Class Name: Permit File
• Doc Date: 12/15/1997
• Doc Name: FINANCIAL WARRANTY PRELIMINARY CALCULATION STONE GRAVEL PIT PN M-97-089
• From: DMG
• To: STONE GRAVEL PIT
• Media Type: D
• Archive: No

• iii iiiiiiiiiiiu iii
STATE
•
OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Depanment of Natural Resources
1 313 Sherman 51., Room ? 15
Denver, Colorado 80203
Phone: [phone]~356I ^+=^_i\i_~
FAX: [phone]
December 8, 1997 [)FC 1 5 1~19~
Doren Stone al~~s~or~ol r•1100f8158. (?ONO;
Stone Gravel Pit
24600 County Road P
Dolores, CO 81323
QENVE ~~~
R OFFICE
PU6LIC FILE COPY DEPARTMENT OF
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Governor
lames 5. Lochhead
Executive Dveaor
Michael B. Long
Division Director
RE: Financial Warranty, Preliminary Calculation,
Stone Gravel Pit, Permit No. M-97-089.
Dear Mr. Stone:
DMG has completed its preliminary cost estimation for reclamation of the Stone Gravel
Pit. Preliminary cost estimations total S17,232. Please find enclosed, 4 page summary
and 14 pages of worksheets, drawing and calculations, utilized by DMG to determine
reclamation cost. DMG cost estimation is based upon information submitted within the
application. If the applicant submits additional information or corrections to the
information utilized by DMG, DMG will review its preliminary cost estimation.
DMG cost estimation differs significantly from the amount proposed in Exhibit L of the
application, primarily because DMG calculated reclamation costs at the completion of
Phase III, rather than at the completion of Phase I. Information within the Mining Plan
indicates that mining operations may commence Phase III (Unit III) of the operation
within the first year of operations. Pursuant to Rule 4.2.1(4), DMG calculated
reclamation costs associated with Phase III, because Phase III represents the maximum
disturbance expected within the single year following permit issuance.
Mining and Reclamation Plans indicate a phased mine plan with contemporaneous
reclamation. Therefore, DMG preliminary cost estimation did not include reclamation
costs associated with Phase I and II. Please note that contemporaneous reclamation
will become a permit condition. Should the operation commence mining of additional
phases prior to completion of reclamation of previous phases, as stated in the Mining
and Reclamation Plans, the operator may be found in violation of permit conditions.
Additionally, DMG will increase the amount of financial warranty to include reclamation
costs associated with all unreclaimed disturbances.
Please contact me at the DMG Durango Office, 484 Turner Drive, Building F, Suite 101,
Durango, CO 81301, phone [phone], if you have any questions.