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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />October 25, 2011 <br />Jim Kiger <br />Oxbow Mining, LLC <br />P.O. Box 535 <br />3737 Highway 133 <br />Somerset, CO 81434 <br />RE: Elk Creek Mine — Permit No. C- 1981 -022 <br />Technical Revision No. 72 (TR -73) <br />Methane Utilization Facility and Relocation of Alluvial Monitor Well <br />Dear Mr. Kiger: <br />STATE OF COLOFADO <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division of Reclamation, Mining and Safety (Division) received Oxbow Mining LLC's (OMLLC) <br />application for Technical Revision 73 (TR -73) at the Elk Creek Mine on October 17, 2011. OMLLC is <br />proposing to add a methane fueled electricity generator, thermal oxidation facility and to relocate an <br />alluvial monitoring well. Our initial review indicates that not all preliminary items required by the <br />Colorado Surface Coal Mining Reclamation Act, Section 33 -34 -101 et seq., have been submitted. <br />Thus your application has been considered incomplete for the purposes of filing on October 25, 2011. <br />The following materials and information are required to deem the application complete. <br />1. Maps 2.05 -M1 and 2.05 -M4 submitted with TR -73 both show changes in the current <br />disturbance boundary, yet the application indicates zero acres disturbed for the proposed <br />changes. The Division agrees with OMLLC that the operation of the methane utilization <br />facility (generators and oxidizer) does not come under the jurisdiction of the Division; <br />however, the disturbance created within the permit boundary does. Please revise the revision <br />application to indicate an increase in the disturbed area acreage. <br />2. OMLLC is proposing to extract methane from a permitted methane degas well to provide the <br />fuel for the proposed facility. The Division does not have jurisdiction over the extraction of <br />methane gas as stated in Rule 1.04(132) which defines surface coal mine operations with the <br />exception: "extraction of natural petroleum in a liquid or gaseous state by means of wells or <br />pipe." However, the "production of oil and gas resources in a manner consistent with the <br />protection of public health, safety and welfare" falls under the jurisdiction of the Colorado Oil <br />& Gas Conservation Commission (COGCC). Please address how OMLLC intends to permit <br />this methane well. <br />Office of <br />Mined Land Reclamation <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />