SUMMARY OF MINUTES MINED LAND RECLAMATION BOARD MEETING The Board Meeting was called to order on Wednesday, March 10, 2010, at 1313 Sherman Street, Room 318, Denver, Colorado. The following members were present: Ray Peterson-Chairperson, Catherine Kraeger-Rovey, Ira Paulin, Barbara Green, Jim Amick, and Mike King. The following people were present for the Division of Reclamation Mining and Safety: Loretta Pineda, Tony Waldron, and Sitira Pope. Jillian Allison, Esq, of the Attorney General s Office was present representing the Board. Also present was Petina Falk, Registered Professional Reporter. 1. Approval of February 2010 Summary of Minutes: The February 2010 Summary of Minutes were approved as submitted for the regular session and the special session held February 23, 2010. 2. Continuances and Withdrawals: The Continuances and Withdrawals were approved as submitted. 3. Consent Agenda: A. Extension of Board Order Deadline KIOWA COUNTY File No. M-1991-078 1305 Goff Street, P.O. BOX 100 Eads, CO 81036 Crowley County, Sec. 25, SE ¼, T20S, R55W, 6 th PM, 9.6 acres, 110(c) Gravel; Peter Pit. Consideration of the operator s request for an extension of the corrective action to submit a conversion application to June 7 h, 2010 as required from the Board Order signed January 7, 2010. (Jared Ebert) The Consent Agenda was approved as submitted. 4. EDO Report: a) DRMS Director: Mr. King announced Loretta Pineda as the newly appointed director of the Division of Reclamation, Mining & Safety. b) Roadless: Mr. King said the 10 th Circuit Court of Appeals is currently hearing an http://mining.state.co.us/summaries/mar10sum.htm (1 of 6)8/25/2011 12:52:26 PM
Director Report: AGO Report: appeal on the roadless matter. Mr. King said Colorado will move forward with implementing the rules. c) Financial Forecast: Mr. King said the next financial forecast should be announced March 20 th. He said the consensus is there may be one more quarter of falling revenue. d) Senate Confirmations: Mr. King said the confirmation hearings for Ms. Kraeger- Rovey and Ms. Paranhos were held. a) Division Director: Ms. Pineda thanked the Board, Mr. King, and the staff for their support during her interim position as the Division director and said she looks forward to the work as the permanent director of the Division. b) Senate Confirmations: Ms. Pineda said both Ms. Kraeger-Rovey and Ms. Paranhos were well received during the confirmation hearings and both were unanimously approved. c) Joint Budget Committee: Ms. Pineda said the Division participated in figure setting with the JBC. She said there were no additional reductions. d) Federal Budget: Ms. Pineda said the OSM has some potential cuts for the coal and AML programs. e) Coal Mine Subsidence Land Use Decision Workshop: Ms. Pineda said DRMS along with the Colorado Geological Survey will be hosting a Coal Mine Subsidence Land Use Decision Workshop. Ms. Pineda distributed material describing the workshop. a) High Country Citizens Alliance: Ms. Allison said Cheryl Linden has filed the record in the HCCA litigation. Staff Presentation by Travis Marshall: 5. Enforcement Hearing BOLTON FENCING AND CONSTRUCTION, LLC File No. M-2009-092 c/o Shawn Bolton P.O. Box 251 Meeker, CO 81641 http://mining.state.co.us/summaries/mar10sum.htm (2 of 6)8/25/2011 12:52:26 PM
Rio Blanco County, Sec. 30, T3N, R103W, 6 th P.M., 1.88 acres, unpermitted, borrow; Bolton Borrow Pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for engaging in a new mining operation without first obtaining a reclamation permit. Also present: Steve Shuey (Jim Amick recused himself from this matter.) By unanimous vote, the Board found the operator in violation for failure to obtain a reclamation permit prior to engaging in a new mining operation. The Board issued a cease and desist order prohibiting further activities at the site, with the exception of reclamation and environmental maintenance activities, until all areas affected by the operation are included in a reclamation permit that has been issued by DRMS. Further, the Board ordered the operator to submit an interim reclamation bond in the amount of $4,136.00 in a form acceptable to the Division within 30 days after the signature date of the Board order AND provide all materials necessary to allow DRMS issuance of a reclamation permit that includes and addresses all areas affected by this construction materials extraction operation, including the required financial warranty, within 90 days of the signature date of the Board order. By unanimous vote, the Board assessed a civil penalty for 56 days of violation at $1,000.00 per day, plus $1,416.00 for staff time (25 hours at $56.64/hour) for a total civil penalty of $57,416.00 with all but $3,416.00 suspended if the corrective actions are completed by June 2010 Board meeting. The civil penalty is to be submitted within 30 days of the signature date of the Board order. Staff Presentation by Steve Shuey: 6 Formal Public Hearing WILDCAT MINING CORPORATION File No. M-1981-185 c/o Mike Clements 3643 Baker Street San Diego, CA 92117 La Plata County, Sec. 28, T36N, R11W, 10 th P.M., 9.9 acres, 110(2), underground hard rock; gold and silver; May Day Mine site. Board consideration of Operator s request to submit financial warranty in the form of a First-Priority Lien on project related fixtures and equipment pursuant to Hard Rock Rules 4.3.10 and 4.9. http://mining.state.co.us/summaries/mar10sum.htm (3 of 6)8/25/2011 12:52:26 PM
Also present: Chris Neumann, Esq., Jeff Fugate, Esq. By unanimous vote, the Board accepted the withdrawal off this item. Staff Presentation by Eric Scott: 7. Enforcement Hearing DUMB & DUMBER TRUCKING, LLC File No. M-2000-149 c/o Brian Barton 1957 CR 57 Sterling, CO 80751 Logan County, Sec. 8 SE ¼ of SE ¼, T6N, R51W, 6 th P.M., 9.18 acres, 110c Sand and Gravel; Barton Pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to post adequate reclamation bond for the site. Also present: Brian Burton, Elizabeth Merry This item was continued to April 14, 2010. Staff Presentation by Michael Cunningham: 8. Formal Public Hearing BESTWAY PAVING COMPANY File No. M-1978-165 P.O. Box 336633 Greeley, CO 80633 Morgan County, Sec. 15 NW ¼, T5N, R60W, 6 th P.M., 5.7 acre, 110c-Sand and Gravel; Etchison Pit. Petition for an administrative appeal of an Office decision and a formal public hearing for the administrative appeal of an Office decision if granted. Also present: Gary Hill, Joe Hawkins, Peter Hack, Esq., Cheryl Linden, Esq. By unanimous vote, the Board granted the petition for an administrative appeal of an Office decision and a formal public hearing for the administrative appeal of an Office decision. By unanimous vote, the Board upheld the Division s findings. Staff Presentation by Michael Cunningham: 9. Enforcement Hearing http://mining.state.co.us/summaries/mar10sum.htm (4 of 6)8/25/2011 12:52:26 PM
CAT CONSTRUCTION, INC. File No. M-1982-160 2751 e. 69 th Place Denver, CO 80229 Weld County, Sec. 31 NW ¼ of, T1N, R66W, 6 th P.M., 33.30 acres, 112c sand and gravel; Brighton Pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to minimize disturbances to the hydrologic balance of the affected land and for failure to comply with applicable Colorado water laws and regulations governing injury to existing water rights. Also present: Peter Hack, Esq. By unanimous vote, the Board found the operator in violation for failure to minimize disturbance to the hydrologic balance of the affected land and of the surrounding area and to the quality and quantity of water in surface and groundwater systems AND in violation for failure to comply with applicable Colorado water laws and regulations governing injury to existing water rights. Further, the Board ordered the operator to obtain and submit a well permit and temporary substitute water supply plan from the Office of the State Engineer and initiate a permanent augmentation plan within 90 days of the signed Board order or submit and obtain approval of an amendment to backfill the site, including an increased financial warranty, within 90 days of the signed Board order. By unanimous vote, the Board assessed a civil penalty for 51 days of violation at $100.00 per day for a total civil penalty of $5,100.00. The civil penalty is to be submitted within 30 days of the signature date of the Board order. Staff Presentation by Tony Waldron: 10. Discussion Item Discuss the Division of Water Resources Updated General Guidelines for Substitute Water Supply Plans for Sand and Gravel Pits and proposed action by DRMS. Also present: Kevin Ryan, Peter Jacobson, Dennis Fields, Bill Timmons, Garrett Varr, Peter Hack, Esq. The Board heard a presentation from the Division regarding the insufficiency in the bonding requirements for mine sites regarding water and the steps the Division is taking to bring all mine sites into compliance. The Board also heard comments from the State Engineer s Office and the industry regarding the potential impacts of the compliance measures. http://mining.state.co.us/summaries/mar10sum.htm (5 of 6)8/25/2011 12:52:26 PM
Staff Presentation by Erica Crosby: 11. Discussion Item/Presentation if time permits: Update on Bond Forfeiture Reclamation Projects. Also present: Bruce Stover The Board heard a presentation from Ms. Crosby and Mr. Stover regarding reclamation projects where the bond has been forfeited. 12. Discussion and Action Item Discussion and possible action regarding upcoming rulemaking. Rulemaking status update. Also present: Cheryl Linden, Esq. The Board was updated on schedule regarding rulemaking as well as informed of the materials they would be receiving for review prior to the rulemaking sessions. 13. Public Comment At this time there were no public comments. http://mining.state.co.us/summaries/mar10sum.htm (6 of 6)8/25/2011 12:52:26 PM