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Home My WebLink About20172665.tiffJuly 27, 2017 Mr. Peter Hays Environmental Protection Specialist II State of Colorado Division of Reclamation, Mining, & Safety 1313 Sherman Street — Room 215 Denver, CO 80203 RECEIVED JUL 282017 WCOMMISSIONERS RE: Northern Colorado Constructors, Inc. — Bennett Pit — File No. M-2016-085 112c Permit Application, Second Adequacy Review Response Dear Mr. Hays, Northern Colorado Constructors, Inc. has received the Division's adequacy review comments letter dated July 10, 2017. Below are the comments and the corresponding responses that have been provided to address the comments. 6.4.3 Exhibit C - Pre -mining and Mining Plan Maps of Affected Lands 8. In response to Item #8, the Applicant submitted an updated Exhibit C map dated May 15, 2017. The revised map did not include the owner's name for the utilities along County Road 22.5 and County Road 23 and the owner of the oil and gas facilities located between the North and South Cells. Please update the map to show the owner's name, type of structures, and location of all significant, valuable, and permanent man-made structures contained on the area of affected land and within two hundred (200) feet of the affected land pursuant to Rule 6.4.3(g). Response: Exhibit C has been updated to provide the owner's name, type, and location of all significant, valuable, and permanent man-made structures contained on the area of affected land and within 200 feet of the affected land. 6.4.4 Exhibit D - Mining Plan 10. In response to Item #10, the Applicant committed to a minimum 200 foot offset from the existing oil/gas facilities until the surface use agreement is finalized with Kerr- McGee Anadarko, which will change the offset to 150 feet from the oil/gas facilities. Please commit to providing the Division with a copy of the agreement with Kerr-McGee Anadarko when available. Response: NCC is pursuing an agreement with Kerr-McGee Anadarko and will provide a copy of the agreement once it is finalized. 11. In response to Item #11, the Applicant submitted a revised application page indicating incidental gold for Item 5.1 on Page 1 of the Application Form. Please explain how the Applicant intends to recover gold as part of the mining activities and update the Mining Plan as needed. ■ obliC Vfi s*/o'l/i 305 Denver Avenue — Suite D • Fort Lupton CO 80621 • Ph: 303-857-6222 • Fax: 303-857-6224 cc.=PLC tYtrn / TP) PuiCSR/CH fUertICIK) —T131/I7 2017-2665 RE: Northern Colorado Constructors, Inc. — Bennett Pit — File No. M-2016-085 112c Permit Application, Second Adequacy Review Response 7/27/17 -2- Response: The incidental gold will be recovered using a sluice box below the wash plant where sand and gravel are washed for concrete rock and sand. The liners within the sluice box will be removed at different intervals during the month to recover the incidental gold. 12. In response to Item #12, the Applicant stated the proposed discharge points had been updated and shown on Exhibit C- Mining Plan Map. The copy of the revised Exhibit C map received by the Division did not indicate the discharge points on the South Platte River. Please submit a revised copy of Exhibit C - Mining Plan Map indicating the discharge points. Response: The proposed discharge points have been updated and shown on the Exhibit C — Mining Plan Map. 13. In response to Item #13, the Applicant stated the design details were included for how the flocculent would be used to settle the materials from the wash plant in the sedimentation pond. The revised Exhibit D — Mining Plan did not include the design details for the use of the flocculent. Please update Exhibit D to include the design details for the use of the flocculent. Additionally, pursuant to Rule 6.4.4(c), please provide design details for the sedimentation pond construction and operation. Response: The water exiting the wash plant will be carried to a sedimentation pond and flocculent will be used to create floc to settle the wash fines in the sedimentation pond. The wash plant discharge will range between 500 and 1500 gpm and the rate of the liquid flocculent added will be 3 gpm per 500 gpm of discharge water. To ensure that proper mixing occurs the liquid flocculent is added in the discharge pipe approximately 15 feet from the end of the discharge pipe where it enters the sedimentation pond. The sedimentation pond is 57,000 square feet in area and will be approximately 5 feet deep which gives a total capacity of 6.5 acre-feet. The pond will likely be operated at roughly 3 feet deep to give some additional freeboard for extra capacity. The pond is sized to hold approximately 6,000 cubic yards of sediment which equates to 10 days of capacity and then the sediment will be cleaned out and placed near the overburden piles to dry and then be utilized for fines in the road base products that NCC produces once it dries. The sedimentation pond will be constructed from the overburden materials. The location of the sedimentation pond is updated on the Exhibit C— Mining Plan Map. 6.4.5 Exhibit E - Reclamation Plan 22. In response to Item #22, the Applicant submitted a floodplain study prepared by J&T Consulting, Inc. dated May 2017. The floodplain study is under review by the Division's engineering staff. The Division's comments will be sent under separate cover if needed. Response: No comments were received from the Division on the Floodplain Study as of July 25, 2017. 6.4.7 Exhibit G - Water Information 25. In response to Item #25, the Applicant stated the proposed discharge points had been updated and shown on Exhibit C- Mining Plan Map. As stated in Item #12 above, the revised Exhibit C map received by the Division did not indicate the discharge points on the South Platte River. Please submit a revised copy of Exhibit C - Mining Plan Map indicating the discharge points. Response: The discharge points have been added to the Exhibit C — Mining Plan Map. A revised copy is attached. V 305 Denver Avenue — Suite D • Fort Lupton CO 80621 • Ph: 303-857-6222 • Fax: 303-857-6224 RE: Northern Colorado Constructors, Inc. — Bennett Pit — File No. M-2016-085 112c Permit Application, Second Adequacy Review Response 7/27/17 -3- 29. In response to Item #29, the Applicant stated the monitor well location map was provided in the attachments. The Division did not receive a copy of the monitoring well location map. Please submit a map indicating the locations of the monitoring wells. Response: The monitor well location map is provided in the attachments. 34. In response to Item #34, the Applicant submitted a Slurry Wall Assessment prepared by McGrane Water Engineering, LLC dated May 10, 2017. The Slurry Wall Assessment is under review by the Division's engineering staff. The Division's comments will be sent under separate cover if needed. Response: No comments were received from the Division on the Slurry Wall Assessment as of July 25, 2017. 6.4.12 Exhibit L - Reclamation Costs 37. In response to Item #37, the Applicant stated the reclamation costs had been updated to reflect 20% for the cost of the slurry wall since the slurry wall construction drawings and specifications were included in the submittal. The Mined Land Reclamation Board (Board) policy allowing an Operator providing the design specifications for slurry walls to reduce the amount of financial warranty required to be held by the Division for the construction of a slurry wall was recently rescinded by the Board. The Division will set the required financial warranty at $1,005,627.00 for Phase 1 upon approval of the permit application. The total required financial warranty amount for the site will be set at $1,988,744.00 upon approval. An additional financial warranty in the amount of $993,116.00 for Phase 2 will be required to be provided to the Division prior to disturbing the second phase. Response: The reclamation costs have been updated. Please refer to the updated Exhibit L attached. 6.4.18 Exhibit R - Proof of Filing with County Clerk and Recorder 38. Please provided an affidavit or receipt indicating the date on which the revised application information required to address this adequacy letter was placed with the Weld County Clerk and Recorder for public review, pursuant to Subparagraph 1.6.2(1)(c). Response: A copy of the cover page of this response letter with a date stamp from the Weld County Clerk to the Board is provided as an attachment. Thank you for your consideration of our responses to the comments. Please feel free to contact me with any questions or if you need additional information. We have also included the party status withdraw forms from Marcelo Ferreira, Veronica Cantrell, and Nicole Cantrell that were given to Northern Colorado Constructors, Inc. Sincerely, J.C. York, P.E. J&T Consulting, Inc. V 305 Denver Avenue — Suite D • Fort Lupton CO 80621 • Ph: 303-857-6222 • Fax: 303-857-6224 RE: Northern Colorado Constructors, Inc. - Bennett Pit - File No. M-2016-085 112c Permit Application, Second Adequacy Review Response 7/27/17 -4- Attachments: 1. Revised Exhibit C 2. Revised Exhibit D 3. Revised Exhibit F 4. Revised Exhibit L and Reclamation Bond Calculations 5. Monitor Well Location Map 6. Party Status Withdraw Forms from Marcelo Ferreira, Veronica Cantrell, and Nicole Cantrell V 305 Denver Avenue — Suite D • Fort Lupton CO 80621 • Ph: 303-857-6222 • Fax: 303-857-6224 FILE CONTAINS OVERSIZED MAP PLEASE SEE ORIGINAL FILE EXHIBIT D Mining Plan Mining Limits The permit boundary will encompass a total of approximately 163.32 acres. An aggregate processing plant area will be located within the mining area as shown on the Mining Plan Map. These areas will contain stockpiles as necessary to support the plant operations. The permit boundary will encompass approximately 163.32 acres with approximately 102.6 acres being mined. The remaining area will consist of setbacks, road and utility right-of-ways, equipment storage, and plant site access. Various setbacks from adjacent roads, adjacent structures, and oil and gas infrastructure will be maintained as mining occurs. All setbacks specified in the surface use agreements with the oil/gas companies will be followed. Attached are draft surface use agreements with the pertinent oil/gas companies. The final executed agreements are expected to be obtained in the near future and will be forwarded to the Division when they are available. A minimum 200 foot setback from any existing oil/gas facility will be maintained until that time. See Exhibit C, Mining Plan Map, and the Slope Stability Report for the mining limit configuration and information on setbacks and their locations. Products Sand and gravel will be the primary product produced from the mining activities, and gold will be the incidental product produced from the mining activities. The principal intended use for the sand and gravel will be as construction aggregates. Incidental gold will be recovered using a sluice box below the wash plant where sand and gravel are washed for concrete rock and sand. The liners within the sluice box will be removed at different intervals during the month to recover the incidental gold. Subsurface drilling and testing has verified that the site contains a significant commercial deposit of sand and gravel. The depth of the soil and overburden ranges from 2 to 10 feet. The depth of the aggregate material ranges from 2 to 52 feet. Mining Methods The deposit will be dry mined and a slurry wall will be constructed around the perimeter of the mining area prior to exposing groundwater. Design specifications for the slurry wall and quality control procedures used during construction will ensure that the reclaimed reservoir meets State Engineer's Office (SEO) performance standards. To enable dry mining there will be a dewatering ditch and pond in each cell as it is mined. The depth of the ditch and pond will vary as the mining progresses deeper into the alluvium in order to maintain the groundwater level below the active mining bottom surface, and therefore minimize the exposed groundwater surface area. Dewatering flows from the ponds will be pumped to the South Platte River. Water from these ponds will also be pumped to the J&T Consulting, Inc. Northern Colorado Constructors Bennett Pit DRMS 112 Permit Application processing pond so it can be used for washing the mined material. The process water pond will be installed near the processing plant and water will be pumped from that location to the processing/wash plant. The water exiting the wash plant will be carried to a sedimentation pond and flocculent will be used to create floc to settle the wash fines in the sedimentation pond. The wash plant discharge will range between 500 and 1500 gpm and the rate of the liquid flocculent added will be 3 gpm per 500 gpm of discharge water. To ensure that proper mixing occurs the liquid flocculent is added in the discharge pipe approximately 15 feet from the end of the discharge pipe where it enters the sedimentation pond. The sedimentation pond is 57,000 square feet in area and will be approximately 5 feet deep which gives a total capacity of 6.5 acre-feet. The pond will likely be operated at roughly 3 feet deep to give some additional freeboard for extra capacity. The pond is sized to hold approximately 6,000 cubic yards of sediment which equates to 10 days of capacity and then the sediment will be cleaned out and placed near the overburden piles to dry and then be utilized for fines in the road base products that NCC produces once it dries. The sedimentation pond will be constructed from the overburden materials. The location of the sedimentation pond location is shown on the Exhibit C - Mining Plan Map. After sedimentation, the clean water will be re -used and discharged back to the processing plant for a closed loop system. The equipment and facilities may include, but are not limited to the following: Processing Equipment Screens, crusher, conveyors, stackers, and other miscellaneous processing equipment. Earth Moving Equipment Dozers, loaders, scrapers, haul trucks, conveyors, excavators, and compactors will be used for mining and earth moving operations. Miscellaneous Equipment Dewatering pumps, electrical trailer, generator trailer, small portable generators and watering trucks will be used as needed. As mining progresses, topsoil and overburden will be stripped to expose the aggregate product below. All soil and overburden material will be used on -site for reclamation or sold; so long-term stockpiling of these materials is not anticipated. Overburden stockpiles will be located within the proposed mining area. Mining of the aggregate will progress down to the underlying bedrock. Since reclamation will occur concurrently with mining, it is not anticipated that overburden will be stockpiled long-term prior to use in the reclamation slopes and in production of road base. The mining face will have a 3H:1V slope from the top of the mining slope to the bottom of the future reclaimed reservoir. The processed aggregate material will be temporarily stockpiled near the processing plant. The materials will moved from the mining area to the processing plant via conveyor, loaders, and haul trucks. All local, State, and Federal rules and regulations will be followed for the storage and handling of any fuel for the facilities. Ill" l r&• halr Consulting, Inc. Northern Colorado Constructors Bennett Pit DRMS 112 Permit Application Topsoil Handling Plan As stated previously the topsoil will be stripped to expose the aggregate product underlying the topsoil. The average depth of the topsoil is approximately twelve inches over the mining areas. The topsoil will be stripped using scrapers and stockpiled in a topsoil stockpile on the west side of the south cell area, adjacent to the access road. The total volume of topsoil in the mining area that will be stripped is approximately 165,000 cubic yards. The majority of this volume will be sold, with a sufficient quantity retained in the stockpile to reclaim the phases as mining is completed. Approximately 25%, or 42,000 cubic yards, will be stockpiled at any given time during the mining activities. The topsoil stockpile is anticipated to be approximately 20 to 25 feet tall. Mine Phasing NCCI anticipates mining and reclaiming the site in 2 phases, taking approximately 10 to 15 years. Phase 1 will include mining the north cell area of 34.95 acres, constructing the access road, implementing the plant site areas, and an area along the west side of the south cell for a topsoil / overburden storage stockpile. Phase 2 will include mining the south cell area of 67.65 acres. Annual production is expected to be between 500,000 to 750,000 tons depending on market demands. The topsoil/overburden stockpile will remain on the site during the duration of the mining activities. The topsoil/overburden stockpile will be placed parallel to the floodplain in order to limit the effects on it. ' J&T Consulting, Inc. ha Northern Colorado Constructors Bennett Pit DRMS 112 Permit Application FILE CONTAINS OVERSIZED MAP PLEASE SEE ORIGINAL FILE J&T Consulting, Inc. Reclamation © 201 ] AT Bond Quantities and Costs 2017 AAT CoowlltLi[. I.e. Northern Colorado Constructors Bennett Pit Revised 7/27/2017 16116 Bennett Pit Rec Bond Calcs Summary of Unit Costs Direct costs Re -applying topsoil 12" thick Revegetating disturbed area Dewatering full pit Slurry Wall Cost (42 foot average depth) (0-50 ft @ $3/ft - 51-70 ft @ $4/ft - 71-75 ft @ $16/ft) Scarifying Ground Mobilization Overhead and Profit Costs Liability insurance Performance bond Profit Proiect Management Engineering and bidding Management and administration $1,800.00 / acre $1,000.00 / acre $400.00 / million gallons $126.00 / linear foot $200 / acre $2,500 lump sum 1.55% of direct cost 1.05% of direct cost 10.00% of direct cost Total Overhead Cost 12.60% of direct cost 4.25% of direct cost 5.00% of direct cost Total Additional Cost 9.25% of direct cost 1 of 2 J&T Consulting, Inc. Reclamation Bond Quantities and Costs © 2017 j&T Consultant. Inc. Northern Colorado Constructors Bennett Pit Revised 7/27/2017 16116 Bennett Pit Rec Bond Caics Phase 1 - 57.22 acres (North Cell, Access Road, Plant Site Areas, Topsoil/OB Stockpile in South Cell) Reclamation Operation Slurry Wall Required to Close Phase 1 Scarifying - Topsoil/OB Stockpile, Access Road, Plant Site Areas Topsoil Placement - Topsoil/OB Stockpile, Access Road, Plant Site Areas Revegetate - Topsoil/OB Stockpile, Access Road, Plant Site Areas Scarifying - Disturbed Areas - North Cell to Water Surface Topsoil Placement - Disturbed Areas - North Cell to Water Surface Revegetate - Disturbed Areas - North Cell to Water Surface Mobilization Quantity Unit Unit Cost Cost 5,705 18.40 18.40 18.40 7.90 7.90 7.90 7.9 If ac ac ac ac ac ac Is $ 126.00 $ 200 $ 1,800 $ 1,000 $ 200 $ 1,800 $ 1,000 $ 2,500 718,830 3,680 33,120 18,400 1,580 14,220 7,900 19,750 817,480 Total Direct Cost Overhead and Profit Cost (12.60%) 103,002 920,482 Contract Cost Project Management (9.25%) $ 85,145 Total Required Financial Warranty For Phase 1 $ 1,005,627 Phase 2 - 67.87 acres (South Cell) Reclamation Operation Slurry Wall Required to Close Phase 2 Scarifying - Disturbed Areas - South Cell to Water Surface Topsoil Placement - Disturbed Areas - South Cell to Water Surface Revegetate - Disturbed Areas - South Cell to Water Surface Mobilization Quantity Unit Unit Cost Cost 6,185 8.50 8.50 8.50 1.0 If ac ac ac Is $ 126.00 $ 200 $ 1,800 $ 1,000 $ 2,500 779,310 1,700 15,300 8,500 2,500 807,310 Total Direct Cost Overhead and Profit Cost (12.60%) 101,721 909,031 Contract Cost Project Management (9.25%) $ 84,085 Additional Financial Warranty Required For Phase 2 Cummulative Financial Warranty Required For Phase 1-2 $ 993,116 $ 1,998,744 2 of 2 P:\16116 Bennett Mine Permitting\Drawings\Plan Sheets\Slurry WalI\JT-MW Map_dwg, MW, 7/10►12017 8:83:16 AM LEG END A.S S SS ties 01* EXISTING EXISTING EXISTING EXISTING EXISTING EXISTING EXISTING EXISTING MIN ING SLURRY r I PERMIT CONTOURS WETLAND PROPERTY BOUNDARY GAS ELECTRIC TELEPHONE OVEfHEILO ELECTRIC EASEMENT LIMIT WALL BOUNDARY Jr13E-1x14 O MONITORING WELL LOCATION' 2DO 100 a 200 400 COO SCALE IN FEET Bennett Gravel Pit c 1a tY a Jub/ PPS L.1fawn Eli_ cimoup4 By FM 7 10.11 6'YSE TPY JCY JT•Borinn SCAW 1-.4200' Sheet: I c 1 STATE OF COLORADO MINED LAND RECLAMATION BOARD PARTY STATUS WITHDRAW FORM In the matter of File No. M- DU 1- (4 , Permit/Permit Amendment Application. Name of Operator pplicant and Site: I\ ON4-61'.. -61'.. V (_.O N) OA (\; ✓ I request I be withdrawn from party status I request I be withdrawn from party status and I wish to address the Board at the formal hearing, if held, as a non-party (Please note that if all objecting parties withdraw prior to the date set for the Board's consideration of the application, the application may be approved by the Office and no Board hearing held. Thus, there will not be an opportunity for any person to address the Board on any issues related to the application. Also, the Board is not obligated to consider any issues raised by a party that has withdrawn.) Regardless of a party status, the Division thoughtfully considers each issue submitted in writing to the Division and provides a response to those issues in the Division's "Rationale for Recommendation". The "Rationale" is available to any person by contacting the Division. For persons who do not wish to become a party or withdraw as a party in this matter, please contact the Division for information on application status. (Please provide the following information if you have or wish to have party status, thank you.) Ac.(C-e lb Printed Name it 1 1-G Ca- Z3 Address Lug,!- Co City, State API- WI., 4- frs .'n,r)q E -Mail Address 38 6 2,f Zip Code ( ) Home Phone # ( ) Work Phone # ( ) FAX No Date STATE OF COLORADO MINED LAND RECLAMATION BOARD PARTY STATUS WITHDRAW FORM In the matter of File No. M- ib %< , Permit/Permit Amendment Application. Name of Operator/ACnt anc4 Site: NO17.'(1-} (1 jv C',0 LO( I)O LnAJ j l5trO S PIC/ request I be withdrawn from party status I request I be withdrawn from party status and I wish to address the Board at the formal hearing, if held, as a non-party (Please note that if all objecting parties withdraw prior to the date set for the Board's consideration of the application, the application may be approved by the Office and no Board hearing held. Thus, there will not be an opportunity for any person to address the Board on any issues related to the application. Also, the Board is not obligated to consider any issues raised by a party that has withdrawn.) Regardless of a party status, the Division thoughtfully considers each issue submitted in writing to the Division and provides a response to those issues in the Division's "Rationale for Recommendation". The "Rationale" is available to any person by contacting the Division. For persons who do not wish to become a party or withdraw as a party in this matter, please contact the Division for information on application status. (Please provide the following information if you have or wish to have party status, thank you.) ie& (freI/ Printed Name 1/0/k ,a3 Address ft KAYtpn ,CD City, State Sig (C17U)7M— 7 Home Phone # (3) Work Phone #� L, ) Zip Code FAX UI Date 7/162 117 Address fbr1- Lu n Co City, Stat [. pc{- ?i-Dv �11�S E -Mail Address STATE OF COLORADO MINED LAND RECLAMATION BOARD PARTY STATUS WITHDRAW FORM In the matter of File No. M- - , Permit/Perm t Amendment Applicatio Name of Operator/Applicant and Site: I,40 ¶ LI()IJ L1M t NC f i i I request I be withdrawn from party status V I request I be withdrawn from party status and I wish to address the Board at the formal hearing, if held, as a non-party (Please note that if all objecting parties withdraw prior to the date set for the Board's consideration of the application, the application may be approved by the Office and no Board hearing held. Thus, there will not be an opportunity for any person to address the Board on any issues related to the application. Also, the Board is not obligated to consider any issues raised by a party that has withdrawn.) Regardless of a party status, the Division thoughtfully considers each issue submitted in writing to the Division and provides a response to those issues in the Division's "Rationale for Recommendation". The "Rationale" is available to any person by contacting the Division. For persons who do not wish to become a party or withdraw as a party in this matter, please contact the Division for information on application status. (Please provide the following information if you have or wish to have party status, thank you.) 1`1'IctIlk.))72O-11 t,02 - Printed Name Home Phone # IIl'1t e,Q l ( ) Work Phone # ( ) FAX .1(11/ Date g()LQI rn Zip Code Signature Hello