Wednesday, April 12, 2006

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SUMMARY OF MINUTES

MINED LAND RECLAMATION BOARD MEETING

The Board Meeting was called to order on Wednesday, April 12, 2006, at 1313 Sherman Street, Room 318, Denver, Colorado. The following members were present: Ira Paulin-Chairman, Harry Javernick, Catherine Kraeger-Rovey, Michael Nelligan, Dan Ellison, Jim Amick, and Michael King. _________________________________________________________________________________

Wednesday, April 12, 2006

Staff Presentation by Kate Pickford:

1. Executive Session

PROSPECTING …File No. P-2005-034

Consideration of a possible notice of violation and civil penalties for failure to perform the prescribed reclamation plan; failure to conduct prospecting in such a manner as to minimize surface disturbances; failure to include any new road used for prospecting or any existing road which is significantly upgraded as part of the affected acreage; and failure to conduct drilling in such a way as to prevent cutting and fluids from entering any drainageway. (45 minutes)

The Board found the operator in violation of C.R.S. 34.32-116(1) for failure to perform the prescribed reclamation plan; Rule 5.3.1 and 5.3.1(c) for failure to conduce prospecting in such a manner as to minimize surface disturbances and failure to include any new road used for prospecting or any existing road which is significantly upgraded as part of the affected

acreage; and Rule 5.3.1(d) for failure to conduct drilling in such a way as to prevent cuttings and fluids from entering any drainageway.

The Board ordered the prospector to reclaim all areas disturbed by this operation to include the seeding of affected areas and drainages. Reclamation should be conducted in accordance with Bureau of Land Management specifications.

The Board assessed a civil penalty of in the amount of $226.56 for staff time and $3,000 for 30 days of violation at a rate of $100 per day, with all but $1,000 to be suspended if all the corrective actions are completed in a timely manner according to the BLM and Division’s. The civil penalty must be submitted within 30 days.

2. Change of Chair – April 2006 to October 2006

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Catherine Kraeger-Rovey - Vice Chair

Staff Presentation by Loretta Pineda:

3. Formal Public Hearing

COLORADO INACTIVE MINE RECLAMATION PROGRAM Review and approval of the 2006 OSM Grant and Construction Projects. The Board approved the projects as presented by Loretta Pineda.

4. Discussion Item

MLRB Planning Session.

Regular Board Meeting

1:30 p.m.

Staff Presentation by Kate Pickford:

5. Discussion Item

KIRKLAND CONSTRUCTION, LLLP File No. M-2003-094

P. O. Box 580 Rye, CO 81069

Archuleta County, Sec. 24, T32N, R4W, 10th_{P.M., 6.89 acres, 111 sand and gravel; Chavez}

Pit #2 site. Update on the status of the reclamation plan (continued from the March 2006

Board meeting).

Staff presented an update on the status of the reclamation plan at this site.

Staff Presentation by Bruce Humphries:

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c/o Mr. Michael Conlin 875 Mountain View Dr. Leadville, CO 80461

Lake County, Secs. 4-6, T11S, R80W and Sec. 33, T10S, R80W, 6th_{P.M., approx. 6 acres,}

research project construction/development; Rocky Mountain Fen Research Project site. Consideration of the petitioner’s request for a declaratory order exempting the proposed activity from the requirements of a reclamation permit.

The Board granted the petitioner’s request for a declaratory order exempting the proposed activity from the requirements of a reclamation permit.

Staff Presentation by Berhan Keffelew:

ALBERT FREI & SONS …File No. M-1977-526

11521 Brighton Rd. Henderson, CO 80640

Adams County, Sec. 26, T1S, R67W, 6th P.M., 160.9 acres, 112 sand and gravel;

Worthington Pit site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to obtain Division approval prior to placing a slurry wall.

The Board found the operator in violation of C.R.S. 34-32.116 and instructed the operator to complete and obtain approval of the amendment covering the slurry wall submitted on April 3, 2006.

The Board assessed a civil penalty of in the amount of $100 per day for 26 days of violation for a total of $2,600, with all but $1,000 to be suspended if the amendment is approved by the October 2006 Board meeting, with the $1,000 due 30 days from the date of the signed Board order.

READY MIXED CONCRETE CO. …File No. M-1985-017

14585 Brighton Rd. Brighton, CO 80641

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Adams County, Sec. 14, T1S, R67W, 6th_{P.M., 36.1 acres, 112 sand and gravel; Ready}

Mixed Pit #1 site. Consideration of a 112c permit application where objections have been received.

The Board affirmed the Division’s decision to approve the permit application, because no objectors were present.

Staff Presentation by Tony Waldron:

CITY OF LAMAR (operator) …File No. M-2006-030

102 E. Parmenter Street Lamar, CO 81052

Mr. Rex Walker (landowner)

402 Valley View Road P. O. Box 190

Lamar, CO 81052

Prowers County, Sec. 24, T23S, R46W, 6th P.M., 3.4 acres, illegal surface sand pit; Clay Creek Sand Pit site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to obtain a reclamation permit prior to engaging in a new mining operation. (45 minutes)

The Board found the operator in violation of C.R.S. 34-32.5-109 for failure to first obtain from the Board or the Division a reclamation permit prior to engaging in a new operation and ordered the operator to fully reclaim the site and restore stream gradient by July 31, 2006. The Board assessed a civil penalty in the amount of $902.24 for staff time and $1,000 per day for 19 days of violation for a total of $19,902.24, with all but $902.24 to be suspended if the corrective actions are completed by July 31, 2006.

10. Approval of March 2006 Summary of Minutes: The March 2006 minutes were approved as submitted.

11. Continuances and Withdrawals: The Continuances and Withdrawals were approved as submitted.

12. EDO Report:

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forward with an environmental impact statement for oil shale. He said that DNR is acting as the cooperating agent on that process.

b) Water Compact Bill: Mr. King said the Water Compact bill is moving forward in the

Legislature.

c) Split Estate Bill: Mr. King said that the Split Estate bill was withdrawn by its sponsors.

Director Report:

a) Severance Tax Audit: Mr. Cattany said the Division is continuing to provide

information to the State Auditor’s Office related to the Severance Tax Audit.

b) Homeland Security: Mr. Cattany said the Department is continuing to move forward

to identify the critical and essential functions that would need to b e covered during a 12-hour to 30-day period if 1313 Sherman was incapacitated.

c) Henderson Mine: Mr. Cattany said the Husep/Dusel Project at the Henderson Mine

continues to move forward. He said that Russell George is on an advisory committee, which is chaired by the Lt. Governor, for this project. Mr. Cattany reported that there is a high probability that Sen. Fitzgerald and Rep. White will develop a resolution in support this project. He also stated that there might be a bill during the next legislative session proposing a commitment of $20 million of DNR operating account funds to this project over a four- or five-year period.

d) Climax Mine: Mr. Cattany said that Phelps-Dodge has indicated an intention of

reopening the Climax Mine.

e) Teller County: Mr. Cattany extended thanks to Board Member Ellison for his offer to

participate in the discussions with Teller County officials on the scope of the jurisdiction of the DMG.

f) Good Samaritan Legislation: Mr. Cattany said Sen. Allard and Sen. Salazar have

introduced a bill on Good Samaritan legislation reflecting the position of the state and the MEGA Board over the last 10 years on liability issues. He said that the EPA might also introduce a Good Samaritan bill solely related to the Clean Water Act and not CRCLA. g) Vacancies: Mr. Cattany said the Division is holding some its vacancy savings in the

event outside contracting is needed for scientific work. He said that in the interim, Allen Sorenson is assuming some of the duties of principal scientist.

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h) Asarco: Mr. Cattany reported on a meeting with Asarco, Lehman Brothers, and the

bankruptcy lawyers. He said that Asarco wants to move forward to complete the bankruptcy proceeding with an approved plan by the end of 2006.

i) Frank Johnson: Mr. Cattany announced the passing of Mr. Johnson, who worked with

the Attorney General’s Office, earlier this month.

AGO Report:

a) Asarco: Mr. Powell informed the Board he would present them with a draft proof of

claim at the May Board meeting, which the AG’s Office will be filing on their behalf in the Asarco bankruptcy matter. He said that the claim would describe the believed estimated shortfall due from the bankruptcy estate for the Black Cloud Mine.

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