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HomeMy WebLinkAbout940383.tiff RESOLUTION RE: APPROVE TRANSFER OF MINERAL RECLAMATION PERMIT AND SUCCESSION OF OPERATORS APPLICATION PACKAGE AND AUTHORIZE CHAIRMAN TO SIGN NECESSARY DOCUMENTS - 83RD AVENUE PIT WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with a Transfer of Mineral Reclamation Permit and Succession of Operators Application Package concerning 83rd Avenue Pit, between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Public Works Department, and Hall-Irwin Construction, with terms and conditions being as stated in said package, and WHEREAS, after review, the Board deems it advisable to approve said package, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Transfer of Mineral Reclamation Permit and Succession of Operators Application Package concerning 83rd Avenue Pit, between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Public Works Department, and Hall-Irwin Construction be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign any necessary documents. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 25th day of April, A.D. , 1994. LW BOARD OF COUNTY COMMISSIONERS ATTEST: illa,tet WELD COUNTY, OLORADO Weld County Clerk to the Board / V /2-2/47)C1 ,r ,/ H. Webster, Chairm BY: & .(!f/ K,S, I i Deputy !Clerk to the Board Daley Hall, ro-7m le APPROVED AS TO FORM: /I e< C , / �c / Coun y Atto ney Con tance L. Harbert / `/t�" arbara J. Kirkme er 940383 ?Sste.6 mEmoRAnDum Vint Clerk to the Board and To Bruce Barkar, r y Attorney Date pr' 15, 1994 COLORADO From George Cicoff. Director of Public Works subject: 83rd Avenue Development The attached letter dated April 5, 1994, from the Division of Minerals and Geology, and addressed to Hall-Irwin Construction Company sites violations of state law that are a direct result of the county's operation in the adjoining Herbst Pit operation. The Public Works staff has researched the records and we believe the following facts to be true: 1. On April 16, 1990, Weld County entered into lease agreements for both the Herbst Pit Phases IV and VII and the adjoining area, commonly known as the 83rd Avenue Development. 2. The 30-year lease for the 83rd Avenue Development contained provisions for the county to exercise a purchasing option within two years of the original date of the lease. 3. By resolutions adopted on December 30, 1991, and a subsequent resolution adopted on January 22, 1992, the county withdrew from the option to purchase the property. 4. During the operations for the extraction of materials from Phase IV of the Herbst Pit, the county stockpiled topsoil material on the 83rd Avenue Development. 5. The Hall-Irwin Construction Company has secured a permit for the 83rd Avenue Development in accordance with the lease agreement. However, the permit has never been activated. 6. In an agreement the county reached with A-1 Organics of Eaton, excess quantities of the topsoil material stockpiled on the 83rd Avenue Development were being screened and eventually removed from the site. 7 . The combination of utilization of an unpermitted area for storage materials , the utilization of those materials , their screening and subsequent removal from the site, constituted the violations of state law referred to in the April 5th letter to Hall-Irwin Construction Company. To remedy this situation, the Public Works Department has arranged for A-1 Organics to utilize stockpiled materials from the active permitted site of the Geisert Pit. The execution of the enclosed permits will transfer the permit for the 83rd Avenue development from Hall-Irwin Construction Company to Weld County, and establish Weld County as the operator. Modifications of the permit to accommodate the actual operating conditions must also be made in the immediate future. 940383 Page 2 The approval and execution of the attached documents is required on or before April 25 , 1994, so that they may be presented to the Colorado Mined Land Reclamation Board in a formal public hearing on April 27-28. The Department will pay the appropriate application fees. It should be noted that as a result of the county's operations on an unpermitted site, Hall-Irwin Construction Company may be subject to penalties for which the county could be held responsible. To minimize the potential for penalties being issued against this operation, it is respectfully requested that the Board take immediate action. Due to the complexities of the leases and the potential liabilities, we are requesting by copy of this letter, that the County Attorney's Office carefully review the lease and permitting application. If a work session to explain the details of the situation is desired, please advise. Documents for the Performance Warranty must also accompany the application. GC/pds :mbruce.1 cc: Commissioner Kirkmeyer File 940393 STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY of Department of Natural Resources pin 1313 Sherman St., Room 215 Denver,Colorado 80203ifret Phone:(303)866-3567 FAX:(303)832-8106 DEPARTMENT OF April 5, 1994 NATURESOURCES Mr. Brett Hall Roy Romer Hall-Irwin Construction Co. Governor P.O. Box 659 Ken Salazar 3026 4th Avenue Executive Director Greeley, CO 80632 Michael Long Division Director Re: Herbst Pit, Permit No. M-92-069 - Notice of Reason to Believe a Violation Exists Dear Mr. Hall : On March 31 , 1994 we conducted an inspection of your mine and found overburden material mined from the permit area was stockpiled outside the permit boundary on an unpermitted site . We believe this is in violation of C.R.S. 34-32-109(1 ) , (2) and (7) , and 34-32-116(7)(h) the Colorado Mined Land Reclamation Act and Rules 2. 1 and 6. 1 (2) of the Rules and Regulations of the Colorado Mined Land Reclamation Board. Therefore , we have found reason to believe a violation exists to Permit M-90-119 and the Law and have scheduled this matter before the Mined Land Reclamation Board. A Formal Public Hearing will be held during the April 27-28, 1994 Board meeting for consideration of possible violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be considered and you will have the opportunity to be represented and heard. It will be reiterated that there is reason to believe that you are in violation of the provisions noted above . If the Board finds a violation at this hearing, it may issue a cease and desist order , assess a civil penalty in the amount of $100.00 to $1 ,000.00 for each day of violation or order the permit be suspended , modified or revoked . In addition it may set the matter for consideration of forfeiture of the $92,562.00 financial warranty at a subsequent hearing . If you have evidence indicating that the possible violations noted above do not exist or have been corrected , please provide it to us as soon as possible or bring it to the hearing. If you have any questions , please contact Bill York-Feirn. ce ly, ICHAEL B. LONG Division Director r Hall4nAn MBL/WCY/ern Redd ,,, 7 /7/ CERTIFIED MAIL NO. P 296 603 050 Return Receipt Requested 940393158F STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources RECE!VE�f AP; {� 1313 Sherman d Room 215 O U Den Denver,Colorado 80203 II C Phone:(3031866-3567 FAX:(303)832-8106 TRANSFER OF MINERAL RECLAMATION PERMIT DEPARTMENT OF AND NATURAL SUCCESSION OF OPERATORS RESOURCES APPLICATION PACKAGE Roy Romer Governor Ken Salazar Executive Director Michael B.Long Applicability Division Director This document applies to mining operations where the current permitted mine operator wishes to transfer the Reclamation Permit and permitted reclamation responsibilities to a Successor Operator (a new operator) . Please follow the instructions provided in this package for filing an application; Mineral Rules and Regulations Number 1 .7 (Permit Transfer application requirements) should also be reviewed prior to completing this form. Filing Requirements To apply for a transfer please submit the following to the Division: 1 ) A "Transfer of Permit and Succession of Operator" application form, signed and notarized by BOTH the current permittee and successor operator; 2) The Application Fee of $100.00; 3) A Performance Warranty Form bearing an original notarized signature of the successor operator; and, 4) Financial Warranty: A) You have the option to WAIVE YOUR RIGHT to a thirty (3O) day processing time to allow the Division time to recalculate the required financial warranty; or , B) You may choose NOT TO WAIVE YOUR RIGHT to a thirty (3O) day processing time. In such case , the Division will recalculate the required financial warranty within sixty (6O) days from the decision date . The required RECLAMATION BOND COULD BE SUBSTANTIALLY INCREASED at that time. If the financial warranty is increased , you will then be required to post the additional financial warranty. This application package contains the "Transfer of Permit and Succession of Operator" application form, and a Performance Warranty form for your use . Rule 7 .4 of the Mineral Rules and Regulations describes the various acceptable Financial Warranty types . Please contact the Division to obtain the appropriate Financial Warranty form. Upon submittal of this application, the application fee , and the replacement performance and financial warranties the Division of Minerals and Geology (the "Division") will review the reclamation costs of the permitted operation . The Successor Operator must post a new bond prior to approval of the permit transfer. The Successor Operator will be notified if additional reclamation bond is required within 60 days of approval if you do not wave your right to a decision within 30 days . The Division will notify both operators upon completion of the permit transfer . - 940393 • -2- Application Review Procedures The Division will act upon your application within thirty (30) days of receipt . The Division will grant your request for a permit transfer if it finds that the successor operator is capable of assuming all responsibility for the conditions included under the original permit by virture of acceptable performance and financial warranties . Your request is automatically approved if it has not been denied by the Division within thirty (30) days of filing. If the Permit Transfer application is denied, you will be notified within ten ( 10) days of the decision deadline. You may appeal the Division decision to the Mined Land Reclamation Board by submitting a written Request for Administrative Appeal to the Division within sixty (60) days of the date of the decision (please refer to C.R.S. 34-32-107(2)) and Rule 1 .7 .4. Notice of Permit Transfer is acknowledged in the monthly activity report attached to the monthly Board Agenda. Once the Permit Transfer document is approved, the originally submitted Performance and Financial Warranties will be returned to the previous operator, as the previous operator is no longer responsible for the reclamation of the transferred operation. NOTICE TO SUCCESSOR OPERATOR: 1 ) Once the Permit Transfer is approved, you will be responsible for maintaining the mining and reclamation operations in compliance with the Mined Land Reclamation Act and the Mineral Rules and Regulations . 2) All of the application materials , as amended and supplemented, are an integral part of the permit. They have been incorporated into the permit by reference . We suggest you keep a copy of the permit, the permit application, and a copy of the regulations at the mining operation as a reference . If you are unable to secure a copy of the permit application from the original operator, you may purchase a copy from the Division . 3) Changes in the mining and reclamation operations that differ from those described in the permit may require a revision to the permit. We suggest consulting the Mineral Rules and Regulations and/or contacting us to determine if a revision to the permit is necessary. Rule 1 .8 pertains to Amendments , Rule 1 .9 to Technical Revisions , and Rule 1 . 10 to Conversions . 4) On your permit anniversary date each year, you MUST submit an annual fee and report to the Division. Please consult C.R.S. 34-32-127(2) for applicable annual fee requirements for your operation. (08/93) 3117F 3,1®393 TRANSFER OF PERMIT AND SUCCESSION OF OPERATORS APPLICATION FORM The application for a Transfer of Permit and Succession of Operators must contain four (4) major parts : 1 ) an Application Form; 2) an Application Fee; 3) a Performance Warranty (attached as part of the Application Package) bearing the original notarized signature of the Successor Operator; and, 4) a replacement Financial Warranty provided by the Successor Operator, bearing an original notarized signature. To expedite processing, please provide the information in the format and order described below. I . FINANCIAL WARRANTY INFORMATION� (Choose ONE Option) : Y 1 . Option A: 42 /--(fig/ / //A5/i'f I wish to WAIVE MY RIGHT to a 30-day (Initial & Date) processing time to allow the Division of Minerals and Geology to recalculate the Financial Warranty requirements . 2. Option B: I DO NOT WISH TO WAIVE MY RIGHT to a (Initial & Date) 30—day processing time. I hereby submit a replacement Financial Warranty for the same dollar amount as the Financial Warranty maintained by the current operator . I understand that the Division of Minerals and Geology will recalculate the required reclamation bond within 60-days from the decision date and the required FINANCIAL WARRANTY COULD BE SUBSTANTIALLY INCREASED at that time . As the new operator , I agree to be responsible for posting any required increase to the financial warranty for good cause shown , in a form acceptable to the Board, within 60-days of such notice . 940393 -2- II . ADMINISTRATIVE INFORMATION: 1 . Permit Number: M-90-119 2. Operation Name : 83RD AVE DEVELOPMENT 3. Current Permitted Operator: Contact Person: SCOTT MASI Company Name: HALL—IRWIN CONSTRUCTION CO Street: P 0 BOX 649 City: GREELEY, State: Co Zip Code: 80631 Area Code: 303 Telephone: 352-6057 4. Successor Operator: Contact Person: KENNETH SCHRAEDER - MINING DIVISION Company Name: WELD COUNTY GOVERNMENT Street: P 0 BOX 758 City: GREELEY State: CO Zip Code : 80632 Area Code: 303 Telephone: 356-4000 X3750 IRS Tax ID No. or Social Security No. : 846000813 5. Application Fee: $100.00 Make check payable to the Division of Minerals and Geology 940393 -3- III . 1 . Yes : X As the successor operator do you have a complete copy, as is available, of the approved reclamation application to No: include any permit modifications? A copy of the approved application and any modifications to the permit may be purchased through the Division. Unless you specify which portions of the permit file you want copied the entire file will be copied. The Division will send the entire file, or portions you specify, to an outside vendor and you will be billed accordingly. 2 . Yes : X Have you verified that the permit area you are assuming reclamation responsibility for is the area described in the No: approved permit application? 3. Yes : X Have you verified that you have legal right of entry to conduct mining and reclamation? No: 940393 -4- IV. RECITALS 1 . On , 1994 Permit Number M-90-119 was granted to HALL-IRWIN CONSTRUCTION (existing operator) ("Permittee") , pursuant to which Permittee has been conducting a mining operation in the County of WELD , State of Colorado. 2. Permittee wishes to assign the permit to WELD COUNTY (new operator) , as Successor Operator ( "Successor") and Successor wishes to become Successor Permittee under the permit. 3 . Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable State laws and regulations has not been completed and is willing to assume full responsibility for the completion of the Plan. V. AGREEMENTS Permittee and Successor hereby agree , for their own benefit and for the benefit of the State, such agreements to be effective ipso facto upon the approval by the State of the transfer of the Permit from Permittee to Successor, as follows : 1 . Successor has inspected the mining and reclamation operations to its entire satisfaction and is fully aware of the conditions thereof. Successor understands and accepts all of the conditions of the Permit . 2 . Successor will complete the reclamation plan , and hereby assumes liability for completing such plan as to all areas heretofore disturbed, as well as to all areas hereafter disturbed . Successor will perform all of the obligations of the Permittee under the Permit which have not heretofore been performed by Permittee . 3. Successor hereby tenders to the State its attached Performance and Financial Warranties* , which are to be substituted for the Performance and Financial Warranties heretofore filed by the Permittee , effective upon the release of the latter Warranties . 4. Successor represents to the State that, to the best of its knowledge, information and belief, it is not in violation of any of the provisions of the Colorado Mined Land reclamation Act with respect to any other operation conducted by it in the State of Colorado. 910393 -5— Permittee and Successor hereby request the State to consent to the assignment of the Permit , to recognize Successor as Successor Operator under the Permit, and to accept the tendered substitute Performance and Financial Warranties in place of the Warranties presently on file with the State . PERMITTEE SUCCESSOR OPERATOR HALL-IRWIN CONSTRUCTION WELD COUNTY Name of Permittee Name of Successor ) �� By By if itD /X 1iyt Signature of Officer Signature f fficer 04/27/§4 Chairman, Weld County Board V1 -.P44-70A-AST of Commissioners Title of Officer Title of Officer NOTARY FOR PERMITTEE State of COLORADO ) County of WELD ) The foregoing instrument was acknowledged before me this i. - day of fir , ) , / .,.<! by / L._` ,, as of v' • ;> . Notary Public My Commission Expires /c,/i-'/4//' NOTARY FOR SUCCESSOR State of COLORADO ) County of WELD ) The foregoing instrument was acknowledged before me this 25th day of April , 1994 , by W. H. Webster as Chairman of the Weld County Board of Commiccinnors Notary Public i L ®i'GLE'EL4-; My Commission Expires Af(COMMISSION EXPIRES JAN. 1, 199a 940393 • • -6- CONSENT OF STATE EXECUTED this day of , 1994 • (a) Consent is hereby granted to the transfer of the Permit referred to from HALL-IRWIN CONSTRUCTION to WELD COUNTY (b) WELD COUNTY M-90-119 is hereby recognized as Successor Operator under such Permit. (c) The Performance and Financial Warranty substitution above proposed is hereby accepted and approved. STATE OF COLORADO DEPARTMENT OF NATURAL RESOURCES MINED LAND RECLAMATION BOARD DIVISION OF MINERALS AND GEOLOGY By Division Director (08/93) 3117F 910393 REGULAR OPERATION (112) RECLAMATION PERMIT APPLICATION FORM CHECK ONE: _ New Application (Rule 2) x Amendment Application (Rule 1 .8) Conversion Application (Rule 1 . 10) The application for a Regular Operation Reclamation Permit contains three major parts : ( I ) the application form; (2) Exhibits A—S; and, (3) the application fee. When you submit your application, be sure to include one ( 1 ) signed original and four (4) signed copies of the application form, five (5) copies of Exhibits A—S, and a check for the application fee described under Section (14) on Page 3. To expedite processing , please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly, in the space provided, all information described below. 1 . Applicant/operator name: WELD COUNTY 1 . 1 Type of organization (corporation , partnership , etc . ) : GOVERNMENT 2 . Operation name (pit, mine or site name) : 83RD AVENUE DEVELOPMENT 2. 1 I .R.S. Tax ID No. or Social Security No. : 846000813 3 . Permitted Acres : 65.4 Permitted acres Please indicate acreage to the nearest tenth ( 10th) acre . 3 . 1 Application fee (see Section 14) : $1,550.00 Application fee 4 . Substance(s) to be mined (e .g. , gravel /gold/borrow) : SAND AND GRAVEL 5. Name of owner of surface of affected land : HALL-IRWIN CONSTRUCTION 6 . Name of owner of subsurface rights of affected land : SAME If 2 or more owners , refer to Exhibit P . 7 . Type of mining operation : x Surface Underground 8. Location Information: the center of the area where the majority of mining will occur lies in: COUNTY: WELD PRINCIPAL MERIDIAN (check one) : x 6th (Colorado) 10th (New Mexico) Ute TOWNSHIP (write number and check direction) : T 6 x North South RANGE (write number and check direction) : R 66 _ East X West SECTION (write number) : S 31 QUARTER SECTION (check one) : _ NE _ NW _ SE SW QUARTER/QUARTER SECTION. (check one) : x_ NE _ NW _ SE _ SW GENERAL DESCRIPTION: (miles and direction 3 MILES WEST OF GREELEY from nearest town and approximate elevation) 4710 940393 -2- 9. Correspondence Information: APPLICANT/OPERATOR (name, address , and phone of name to be used on permit) Individual ' s Name : KENNETH SCHRAEDER - MATERIALS DIVISION (MINING) Company Name: WELD COUNTY Street: P 0 BOX 758 • City: GREELEY State : CO Zip Code: 80632 Area Code: 303 Telephone: 356-4000 X 3750 PERMITTING CONTACT (if different from applicant/operator above) Individual ' s Name: DONALD CARROLL, ADMINISTRATIVE MANAGER Company Name: WELD COUNTY Street: P 0 BOX 758 City: GREELEY State: co Zip Code: 80632 Area Code : 303 Telephone: 356-4000 X 3750 INSPECTION CONTACT Individual ' s Name: KENNETH SCHRAEDER Company Name: Street: City: State : Zip Code: Area Code: Telephone: CC: STATE OR FEDERAL LANDOWNER (if any) Agency: Street: City: State: Zip Code: Area Code : Telephone: CC: STATE OR FEDERAL LANDOWNER (if any) Agency: Street: City: State: Zip Code: Area Code : Telephone: 910393 -3- 10. Primary future x Cropland(CR) __ Pastureland(PL) __ General Agriculture(GA) (Post—mining) _ Rangeland(RL) _ Forestry(FR) __ Wildlife Habitat(WL) land use Residential (RS) _ Recreation(RC) Industrial /Commercial (IC) (check one) : __ Developed Water Resources(WR) __ Solid Waste Disposal (WD) 11 . Primary present _ Cropland(CR) x Pastureland(PL) _ General Agriculture(GA) land use __ Rangeland(RL) __ Forestry(FR) __ Wildlife Habitat(WL) (check one) : Residential (RS) Recreation(RC) __ Industrial /Commercial (IC) __ Developed Water Resources(WR) 12 . Method of Mining: __ Quarry (OR) __ Solution (SO) 12a. Other: Briefly explain mining method (e .g. Placer, truck/shovel ) . 13 . On Site Processing: Solution (SO) __ Chemical (CH) _ Thermal (TH) Heap Leach (HL) Vat Leach (VL) 14. Application Fee : The application fee for Quarry mining is $2 ,325. The application fee for Solution mining or any Chemical or Thermal Processing is $3, 100. If none of these methods or processes are to be included in the operation then the application fee is $1 ,875 . The application fee for conversion to a 112 permit is $1 , 500. 112 Amendment application fee is $1 ,550. An applicant will not be issued a reclamation permit until notified by the Division that this application and the required performance and financial warranties have been approved . Alternatively, an automatic approval will occur where the Division fails to notify the applicant/operator that the application has been denied . The final agency action must be made within 120 calendar days from the date the application was submitted. However, the performance and financial warranties must be approved by the Division or Board before a permit will be issued even if you receive an automatic approval . NO MINING OPERATIONS SHALL BEGIN UNTIL A PERMIT IS ISSUED (Rule 7.2(2) ) . It shall be a provision of this permit that the operations will be conducted in accordance with the terms and conditions listed in your application, as well as with the provisions of the Act and the Mineral Rules and Regulations in effect at the time the permit is issued. 940393 -4- Notice Requirements Immediately after the first publication of your notice in a newspaper of general circulation in the locality of your proposed mining operation , you must mail a copy of the notice to all owners of record of surface rights to the affected land and all owners of record of lands that are within 200 feet of the boundary of the affected land. Notice requirements are specified in Rule 2.2. A copy of a form which includes all required information for the notice has been attached for your use . You will need to provide the Division proof of notice prior to the decision date, which may be by submitting return receipts of a certified mailing or by proof of personal service (Rule 2 .2 .2(6) ) . NOTE TO COMMENTORS/OBJECTORS: It is likely there will be additions , changes , and deletions to this document prior to final decision by the Mined Land Reclamation Board or Division. Therefore, if you have any comments or concerns , you should contact the applicant or the Division prior to the decision date so that you will know what changes may have been made to the application document. The Division is not allowed to consider comments , unless they are written , and received prior to the end of the public comment period. You should contact the applicant for the final date of the public comment period. If you have questions about the Mined Land Reclamation Board and Division ' s review and decision or hearing process , you should contact the Division at (303) 866-3567 . As an authorized representative of the applicant, I hereby certify that the operation described herein has met the minimum requirements of the following terms and conditions : 1 . This mining operation will not adversely affect the stability of any significant, valuable and permanent man-made structure(s) located within two hundred (200) fee of the affected lands . However , where there is an agreement that damage to the structure is be be compensated for by the applicant/operator (C.R.S. 34-32-115(4) (d) ) , then mining may occur within 200 feet. Proof of an agreement must be submitted to the Division prior to the decision date . 2 . No mining operation will be located on lands where such operations are prohibited by law (C.R.S . 34-32-115(4)(f) ) ; 3. As the applicant/operator, I do not have any mining/prospecting operations in the State of Colorado currently in violation of the provisions of the Mined Land Reclamation Act (C.R.S. 34-32-120) as determined through a Board finding. 9-0.393 -5- 4. I understand that statements in the application are being made under penalty of perjury and that false statements made herein are punishable as a Class 1 misdemeanor pursuant to Section 18-8-503, C.R.S. Signed and dated this 25th day of April , 1994 . Weld County, Colorado Applicant/Operator If CLn& tion Attest (Seal ) By: / n By: tG/7ea h Wel County 4 7/94IXgI{xH �Xx7t Title: Board of Commissioners ktk 5dcCounty Clerk to Boar By: //i7.#11l O 2 State Of Colorado ) Deputy Clerk to Board ) ss . County of Weld The foregoing instrument was acknowledged before me this25th day of April , 1994 by W. H. Webster aS Chairman Of the Weld County Board of • Commissioners. Notary Public MI COMMISSION E'XPi',ES JAN. 1, 194 My Commission Expires : (04/92) 2823F 910393 $ s' EXHIBIT B ,o^ 475°�, ;^\ „\ _ 4o `a\ ',1-- 1 .::.„ C--- :66W \ eRti J 4737 4747 ' l o' �, • '5) o� 4748 "� BM 4744.!" (` °a ,O 0wec. /"----` Bracewell l __ 29 W The \\ 30 c\' -', ( 7 , d ` \ 7i. s1 41 �l� •o lo.' 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F o \ I j O 1 1 _I '\ i ,m\ \ I o J ` ^J / ' o r. .. .5u Ssta "so \II \11 / 6 1\• `' � \ I fit / I0Nl el . ^' \N. .241O U.S NWY.63 34, / ,\q• 929 _ . 0 2000 e IC 1'2000' N 7. .UJ9 STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY of Department of Natural Resources 1313 Sherman 5t., Room 215 yi Denver,Colorado 80203 Phone:1 1303)03)866-3567 FAX:1303)832-8106 DEPARTMENT OF NATURAL RESOURCES Roy Romer Governor Ken Salazar Executive Director PERFORMANCE WARRANTY Michael B.Long Division Director Operator: WELD COUNTY Operation : 83RD AVE DEVELOPMENT Permit No: M-90-119 KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, CRS as amended , 34-32-101 et seq. (the "Act") , as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, WELD COUNTY (the "Operator") , has applied for a permit to conduct a mining operation known as 83RD AVE DEVELOPMENT (the "Operation") on certain lands in WELD County, Colorado. These lands are described in the permit application, as amended and supplemented , and are referred to herein as the "Affected Lands" . WHEREAS, in its application for the permit, the Operator has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Board , as amended from time to time . WHEREAS, the Board has determined, in accordance with the Act , that the estimated costs of reclamation with regard to those affected lands in WELD County which are now or may become subject to the permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation . WHEREAS, the Operator hereby gives the Board a performance warranty pursuant to Section 34-32-117(2) of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act with regard to those Affected Lands . 940393 -2 NOW, THEREFORE, the Operator hereby promises the Board that it will comply with all applicable requirements of the Act and rules and regulations of the Board with respect to the Affected Lands . FURTHER, the Operator hereby promises the Board that it will comply with all of the terms of the application for a permit, as amended and supplemented , as well as any conditions attached to the permit by the Board . Further, the Operator promises the Board, pursuant to 34-32-112( 1 ) (d) of the Act, that it has the lawful authority to enter upon the Affected Lands to conduct mining operations , including, but not limited to, reclamation . The Operator further recognizes the right of the Board to enter to reclaim lands affected by the operation. The description of lands herein is for convenience of reference only, and no error in such description, nor any revision of the permitted mining area, nor the disturbance by the Warrantor of lands outside of the permitted mining area shall alter or diminish the Operator' s obligation hereunder, which shall extend to the reclamation of all such lands disturbed. The obligation of the Operator hereunder is such that, if the Operator shall successfully comply with the requirements of the Act, applicable rules and regulations, and the permit, then the Board, upon a finding that the Operator has so complied, shall release this performance warranty, and the Operator from its obligation hereunder, to the extent that the Board determines that such compliance has been accomplished. The obligation of the Operator hereunder shall continue until released in whole or in part by the Board in accordance with applicable law. In further satisfaction of the requirements of the Act, the Operator has attached hereto its financial warranty, which may be amended from time to time. The Operator agrees that it will maintain a financial warranty (or warranties) for the estimated costs of reclamation in good standing for the entire life of the permit. If the Board determines that the Operator is in default under this performance warranty and has failed to cure such default, although written notice of such default and ample time to cure such default have been given , the Operator ' s financial warranty shall be subject to forfeiture . This performance warranty may be executed in multiple copies , each of which shall be treated as an original , but together they constitute only one agreement, the validity and interpretation of which shall be governed by the laws of the State of Colorado. .O393 -3- The provisions hereof shall bind and inure to the benefit of the parties hereto and their successors and assigns . SIGNED, SEALED AND DATED, this 25th day of April , 1994 • WELD COUNTY, COLORADO (SEAL) Operator By: hi-k7) 1/0,11JD, 04/27/94 Title : Chairman, Weld County Boardtof Commissioners NOTARIZATION OF OPERATOR'S ACKNOWLEDGMENT STATE OF COLORADO ) ) ss . COUNTY OF WELD ) The foregoing instrument was acknowledged before me this 25th day of April , 1994 , by W. H. Webster as Chairman Of Weld County Board of Commissioners • NOTARY PUBLIC, MY COMMISSION ENPIRES JAN. 1, 1.94 My Commission expires : APPROVED: State of Colorado Mined Land Reclamation Division Mined Land Reclamation Board By: Date , Division Director (03/92) 6427F 940393 APPLICATION AND REPORT FOR REGULAR (112) OPERATION 83RD AVENUE DEVELOPMENT (AMENDED) Weld County, Colorado April, 1994 DIVISION OF MINERALS AND GEOLOGY PERMIT APPLICATION M-90-119 (Amended) Submitted by: Weld County Department of Public Works 933 N. 11th Avenue P.O. Box 758 Greeley, CO 80631-0758 Phone - (303) 356-4000, Ext. 3750 Attn: Donald Carroll, Administrative Manager 310393 REGULAR OPERATION (112) RECLAMATION PERMIT APPLICATION FORM CHECK ONE: _ New Application (Rule 2) x Amendment Application (Rule 1 .8) Conversion Application (Rule 1 . 10) The application for a Regular Operation Reclamation Permit contains three major parts : (1 ) the application form; (2) Exhibits A—S; and, (3) the application fee. When you submit your application, be sure to include one ( 1 ) signed original and four (4) signed copies of the application form, five (5) copies of Exhibits A—S, and a check for the application fee described under Section (14) on Page 3. To expedite processing, please provide the information in the format and order described in this form. GENERAL OPERATION INFORMATION Type or print clearly, in the space provided, all information described below. 1 . Applicant/operator name: WELD COUNTY 1 . 1 Type of organization (corporation, partnership , etc. ) : GOVERNMENT 2. Operation name (pit, mine or site name) : 83RD AVENUE DEVELOPMENT 2. 1 I .R.S. Tax ID No. or Social Security No. : 846000813 3. Permitted Acres: 65.4 Permitted acres Please indicate acreage to the nearest tenth ( 10th) acre. 3. 1 Application fee (see Section 14) : $1,550.00 Application fee 4. Substance(s) to be mined (e.g. , gravel /gold/borrow) : SAND AND GRAVEL 5. Name of owner of surface of affected land : HALL-IRWIN CONSTRUCTION 6. Name of owner of subsurface rights of affected land : SAME If 2 or more owners , refer to Exhibit P. 7. Type of mining operation: x Surface _ Underground 8. Location Information: the center of the area where the majority of mining will occur lies in: COUNTY: WELD PRINCIPAL MERIDIAN (check one) : x 6th (Colorado) 10th (New Mexico) Ute TOWNSHIP (write number and check direction) : T 6 x North South RANGE (write number and check direction) : R 66 _ East 6 West SECTION (write number) : S 31 QUARTER SECTION (check one) : NE _ NW _ SE _ SW QUARTER/QUARTER SECTION (check one) : NE _ NW _ SE _ SW GENERAL DESCRIPTION: (miles and direction 3 MILES WEST OF GREELEY from nearest town and approximate elevation) 4710 940393 -2- 9. Correspondence Information: APPLICANT/OPERATOR (name, address , and phone of name to be used on permit) Individual ' s Name: KENNETH SCHRAEDER - MATERIALS DIVISION (MINING) Company Name: WELD COUNTY Street: P 0 BOX 758 City: GREELEY State: CO Zip Code : 80632 Area Code: 303 Telephone: 356-4000 x 3750 PERMITTING CONTACT (if different from applicant/operator above) Individual ' s Name: DONALD CARROLL, ADMINISTRATIVE MANAGER Company Name: WELD COUNTY Street: P 0 BOX 758 City: GREELEY State: co Zip Code : 80632 Area Code: 303 Telephone: 356-4000 X 3750 INSPECTION CONTACT Individual ' s Name: KENNETH SCHRAEDER Company Name: Street: City: State : Zip Code: Area Code: Telephone: CC: STATE OR FEDERAL LANDOWNER (if any) Agency: Street: City: State: Zip Code: Area Code: Telephone: CC: STATE OR FEDERAL LANDOWNER (if any) Agency: Street: City: State: Zip Code: Area Code: Telephone: 9/2.O Inn -3- 10. Primary future x Cropland(CR) _ Pastureland(PL) General Agriculture(GA) (Post—mining) _ Rangeland(RL) _ Forestry(FR) _ Wildlife Habitat(WL) land use Residential (RS) Recreation(RC) Industrial /Commercial (IC) (check one) : _ Developed Water Resources(WR) _ Solid Waste Disposal (WD) 11 . Primary present _ Cropland(CR) x Pastureland(PL) General Agriculture(GA) land use _ Rangeland(RL) _ Forestry(FR) _ Wildlife Habitat(WL) (check one) : Residential (RS) Recreation(RC) _ Industrial /Commercial (IC) Developed Water Resources(WR) 12 . Method of Mining: _ Quarry (QR) _ Solution (SO) 12a. Other: Briefly explain mining method (e.g. Placer, truck/shovel ) . 13. On Site Processing: Solution (SO) Chemical (CH) _ Thermal (TH) Heap Leach (HL) _ Vat Leach (VL) 14. Application Fee : The application fee for Quarry mining is $2 ,325. The application fee for Solution mining or any Chemical or Thermal Processing is $3, 100. If none of these methods or processes are to be included in the operation then the application fee is $1 ,875. • The application fee for conversion to a 112 permit is $1 ,500. 112 Amendment application fee is $1 ,550. An applicant will not be issued a reclamation permit until notified by the Division that this application and the required performance and financial warranties have been approved. Alternatively, an automatic approval will occur where the Division fails to notify the applicant/operator that the application has been denied. The final agency action must be made within 120 calendar days from the date the application was submitted. However, the performance and financial warranties must be approved by the Division or Board before a permit will be issued even if you receive an automatic approval . NO MINING OPERATIONS SHALL BEGIN UNTIL A PERMIT IS ISSUED (Rule 7.2(2) ) . It shall be a provision of this permit that the operations will be conducted in accordance with the terms and conditions listed in your application, as well as with the provisions of the Act and the Mineral Rules and Regulations in effect at the time the permit is issued. 9 ;9.393 Hello