HomeMy WebLinkAbout3.0 Correspondence• •
GARFIELD COUNTY
DEPARTMENT OF DEVELOPMENT
PLANNING: 945-8212 / ENVIRONMENTAL HEALTH: 945-2339 / BUILDING: 945-8241
MEMORANDUM
TO: Dennis A. Stranger, Director of the Department of Development
FROM: Mark L. Bean, Senior Planner Ake
DATE: January 10, 1984
RE: Comments on Storm King Mine Fiscal Impact Analysis from
City of Glenwood Springs
John Fernandez called to say that he had briefly discussed the
fiscal impact analysis with the new City Council. He was not
authorized to write a letter in their behalf, but has verbally noted
the following comments:
1. That the fiscal impact analysis identify the issues
and benefits of a unitization agreement between the
City and Storm King regarding City revenues from the
coal production. There was some concern about the
starting and stopping of operations and the affect
that it would have on revenues, particularly if the
City owned resources are mined.
2. That the visual impact from the 1-70 corridor be
minimized. Overall, the Council was supportive of the
development.
2014 BLAKE AVENUE
GLENWOOD SPRINGS, COLORADO 81601
• GARFIELD COUNTY 111
DEPARTMENT OF DEVELOPMENT
PLANNING. 945-8212 / ENVIRONMENTAL HEALTH: 945-2339 BUILDING: 945-8241
October 4, 1983
Storm King Mines, Inc.
5335 West 48th Avenue
Denver, CO 80212
Attention: Allen D. Gray, President
Sam S. Arentz, III, Vice -President of Operations
Gentlemen:
The purpose of this letter is to acknowledge receipt of your Statement
of Intent to apply for Garfield County land use permits for
development and operation of a coal mine. Since you are not applying
for any exemption from the Pre -Application Procedures, the next step
in the process is the filing of the Pre -Application Notice.
Per our previous discussion, it is suggested at this time that the
applicant be prepared to conduct two informational meetings in the
County prior to the Pre -Application meeting with the Board. The
Garfield County staff will assist you on this detail as the project
application matures.
Garfield County looks forward to working with you as this project
evolves. If you have any questions or require additional information,
do not hesitate to,call.
Very truly yours,
Dennis A. Stranger
Director of the Department of Development
DAS/emh
CC: Board of County Commissioners
Stan Broome, County Manager
2014 BLAKE AVENUE
GLENWOOD SPRINGS, COLORADO 81601
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Storm King Mines
City of Glenwood Springs
Attn: John Fernandez - Planning
806 Cooper
Glenwood Springs, CO 81601
s
�L�;i�lVISIv.� D: P
November 18, 1983
Subject: Unitization of Storm King's Grand Hogback Coal Leases
Storm King is proceeding with the mine permitting and expects
to begin preliminary operations in 1984., subject of course, to the
tediousness of complying fully with all permitting requirements.
It hopes to produce some coal in 1985.
In the interest of fairness to the lessors, we believe all
the leasehold rights should be unitized. Such an action, of
course, does not affect SKM's annual royalty expense. It does,
however, provide for the distribution of royalty payments pro -
rata to all lessors for every ton of coal produced and sold by
Storm King Mines. Income to the lessors thus would be uniform
and predictable and would not fluctuate widely from year to
year, thereby creating budget and tax problems for both the lessors
and the lessee. Even more importantly, it would provide all
lessors with pro -rated income from the beginning of the operation
as opposed to some lessors being required to wait many years
until mining plans, as they may change from time to time, may
include a particular property.
For purposes of pro -ration, a 6% royalty would be used for
all leases. Cartage fees, overrides, or other payments which may
exist or be created will not be affected. The basis for pro-
ration would be the total in-place coal which was determined by an
independent study prepared by Arthur D. Little, Inc., an inter-
national, highly -regarded, and of course, completely impartial
consulting firm based in Cambridge, Massachusetts.
Storm King Mines, Inc., • 5335 West 48th Avenue • Denver, Colorado 80212 • (303) 433-7471
The Little firm provides the following breakdown for your
property:
Your lands contain in million short
tons of recoverable coal in.place.
This represents AU of the total recover-
able coal in all of the project leases.
Some adjustments may be necessary in the future. if the
status of this coal is changed.
The Little firm classifies coal as recoverable if it is in
seams three feet or thicker and above3000 feet in depth. The
report also states that the recoverability of 5.82 million tons
is not clear, and is therefore not included presently as
recoverable.
We consider the information on your reserves as confidential
unless we have -your permission to release such data to other
lessors. Under the circumstances, such a release may be helpful,
and you may, if you wish, authorize it, in the enclosed return.
We encourage you to participate in the unitization, and will
be more than pleased to answer your questions and provide you
with available information.
This letter is in the form of a preliminary consensus, and
your reply is in no. way an obligation to enter into a formal
agreement. Such an._agreement will be submitted for your review
and approval.
Please return the enclosed form on or before December 1, 1983,
and we shall proceed from there.
Regards,
Allen Gray
President
1
• •
t
SI.orm King Minos
t -e
M.. Al Wrigh
Bu -u of . Management
P. 0. Box 1009
Glenwood Springs CO 81602
Dear Mr. Wright:
We enjoyed the opportunity to discuss Storm King's 302
lease proposal with you, Wright Sheldon and your associates.
The exchange of information was beneficial in understanding
the BLM's analysis and in setting SKM's future course of
action.
November 10, /. •83
►12 �13
From our discussions I see there are several areas where
additional information is to be provided and contacts are to
be made. These are:
1. SKM has collected baseline environmental data for our
permit applications to the Mined Land Reclamation Division and
Garfield County. This information is currently being compiled
and produced in "draft" form for SKM review. The bulkwill be
ready around December 1. As our discussions centered around the
302 leasing option with associated rights-of-way, and as the
general concensus was that an Environmental Analysis (EA) was the
appropriate methodology for review, SKM will make available the
"draft" information on a confidential basis as soon as practical
to determine if it is adequate to prepare the EA. At that time,
SKM and the BLM will allocate responsibilities for the preparation,
production, and distribution of the EA.
2. In order for the review process to begin, SKM will submit
a Notice of Intent to Lease Federal Lands in conjunction with our
proposed Coal Ridge #1 mine. Dennis Stranger, the Garfield County
Planner, has been in contact with Dave Atkins to coordinate the
timing of the Notice with public information meetings that can be
held jointly by SKM, BLM, and Garfield County.
• •
Mr. Al Wright November, 10, 1983
It is Storm King Mines' desire to conduct these meetings
before January 1, 1984. The apparent time frame most suitable
is between November 28th and December '9th. I am not aware of
any statutory limitations.
3. Once the Notice of Intent is submitted, there was some
discussion that the BLM becomes cost reimbursable. Therefore,
I feel it will be necessary for us to meet and arrive at both
budgetary and time estimates for the preparation of the EA. It
is SKM's intent to submit applications to the CMLRD and Garfield
County before January 31, 1984. Further, barring unforseen
obstacles, we believe the review processes can be completed and
ground breaking for the rock tunnelscould commence by July, 1984.
Storm King is not a major miningor oil company and cannot
afford extensive, unwarranted analysis. .Your assistance in develop-
ing a cogent, concise environmental analysis and, where statutorially
feasible, providing the necessary internal BLM funding will be
greatly appreciated.
4. The involvement by other federal agencies was discussed
and it is my intent to contact the following agencies to determine
the extent of their participation based upon Storm King's proposed
plan of operation:
Office of Surface Mining
Corp. of Engineers
Dept. of Fish and Wildlife
It was my impression that Dave Atkins would check on the extent
of NEPA compliance required. When the contacts have been made and
the determination as to extent of interest established, BLM will
coordinate the Federal involvement.
5. Some meetings and understandings have already occurred. The
us of the "Action Handbook" for the incremental analysis of fiscal
impact is an example. Dennis Stranger, Bill Lamont, and Steve
of your office have already discussed SKM's proposed strategy with
the county and this appears acceptable. Similar review will need
to be done on each area of the EA.
In addition, SKM will provide the specifics necessary for
the EA on our mining plan, preparation plant, load -out and
ancilliary facilities.
Mr. Al Wright
• �3 November 10, 1983
6. The limits of areas to be leased or easements (rights -
of -ways) granted can be discussed in greater. detail as can the
development of strategies for continued multiple uses for cattle
grazing and hunting.
SKM has retained professional firms and they have completed
the studies in archaeology and palentology. In addition,,. the
Fish and Wildlife have examined the proposed refuse disposal
areas and the Grand Hogback. As more data are made available,
and mine operating plans refined,, the potential impacts on fish
and other wildlife can be more adequately evaluated. To date, the
impact appears to be negligible.
Storm King Mines will need particulars on the content of the
Notice of Intent required to initiate the EA review process and
the subsequent timetable of events. We propose to submit a Pre -
Application Notice with Garfield County in adequate time to hold
public information meetings sometime between November 28th and
December 9th, 1983. Perhaps December 7th (Glenwood) and December
8th (New Castle) would meet with everyone's schedules.
In order to answer any additional questions your professional
staff may have or the staff of Garfield County, SKM can arrange
for briefings prior to the above dates. I look forward to hearing
from you.
ssa/bf
CC; Wright Sheldon
Dave Atkins
Sincerely,
7"
Sam S. Arentz, III
Vice President/Operations
Storm King Mines
Board of County Commissioners
of Garfield County, Colorado
Commissioners Annex
201 Eighth Street
Glenwood Springs, CO 81601
Re: Statement of Intent to Apply
(Fiscal Impact Mitigation Program)
Dear Commissioners:
• RI.`
SEP w 1983 frrncr"Aa
LAO
September 22, 1983
This letter is to inform you that Storm King Mines, Inc. intends
to apply for a Special Use Permit under Garfield County Land Use
Regulations. This Permit will be for the extraction and pro-
cessing of natural resources along with associated industrial
support facilities, water impoundments, sewage treatment facili-
ties, refuse disposal, loadout, access roads, pipelines, utility
lines, railroad and customary accessory uses. The proposed
project in its entirety is designated the Coal Ridge #1 Mine.
(the project) and will be located entirely within Garfield County,
Colorado. The project, when implemented, will develop and bring
to market undeveloped coal resources which will provide new
economic opportunity as described in the Statement of Purpose
and Authority of Garfield County Resolution 82-318. Storm King
can achieve the objectives of this resolution. These being:
- diversification of the economic base for Garfield
County,
- an increase of the local tax base,
- and provide increased employment opportunities.
The following is a brief description of key project elements,
and how they relate to the project review process and application
for Garfield County Permits. Storm King Mines intends to develop
coal resources under rural lands owned by the company and
additional rural lands for which sub -surface coal rights have
been obtained (see Figure 1, attached). In order to comply with
existing Land Use Regulations in Garfield County, Storm King Mines
intends to participate in the Garfield County Zoning Compliance
Application and Review Procedure to show compliance with County
Storm King Mines, Inc., • 5335 West 48th Avenue • Denver, Colorado 80212 • (303) 433-7471
•
Board of County
Commissioners
-2- September 22, 1983
standards, requirements, and criteria. This compliance review
will demonstrate compatibility with surrounding land use,
appropriateness with the physiographic and general environmental
character of the surroundings and maintenance of both on-site
and off-site environmental conditions in a condition satisfactory
to comply with Garfield County Regulations and State and Federal
law. All specified Industrial Performance Standards will be met.
The proposed land use associated with the project is classified
by Garfield County Regulations under the categories of Extraction,
Processing, Storage and Material Handling. Directly associated
land uses will include the construction of buildings (conventional
and prefabricated), accessory buildings, storage yards; the
construction of water impoundments and refuse disposal areas, the
construction of a private sewage treatment system, the construction
of a rail siding, loadout and coal storage facility, and the
construction of roadways, pipelines, conveying and utility lines,
and parking areas to service project needs. The majority of these
facilities will occur in an existing P/U/D zoning district with
associated development on O/S and A/R/RD lands. Surrounding
agricultural lands under Storm King Mines' control are anticipated
to remain in agricultural use and can provide a large buffer zone
of open space around the project. The substance of requested
Permits would thus include the approval of a Special Use Permit
for industrial development along with associated construction
and building permits if not inclusive.
The project is projected, at full operational development, to
employ a total work force of over 200 employees in Garfield County,
and will thus be considered a Major Project under Garfield County
Regulations. Major Project status requires that the project
participate in the Fiscal Impact Monitoring Program, and this
Statement of Intent initiates Storm King Mines' participation in
that Program. Preliminary meetings with representatives of the
Garfield County Department of Development are underway and the
precise scope of the Fiscal Impact Mitigation Study is being
determined. The proposed Scope of Study will include those areas
specified in Resolution 82-318 and will include the participation
of local jurisdictions and other parties who may wish to participate
at their own request. Mitigating factors which will reduce project
impacts will be a phased start-up, no need for a large construction
phase workforce and a strong emphasis on local hiring. Large
amounts of non -county imported labor will not be required. The
scope of the proposed Fiscal Impact Study will be determined in the
ongoing planning meetings and will be listed in detail in the Pre -
Application Notice which will follow this Statement of Intent.
Board of County
Commissioners
• •
-3- September 22, 1983
The timetable for the Fiscal Impact Study will also be determined
by the schedule of public informational and community meetings
to be developed with Garfield County staff, but it is currently
anticipated that preparation of the required materials will not
exceed 90 days from this notice. The Pre -Application Notice will
be filed during this period and will initiate the timetable of
procedures specified in Resolution 82-318.
No exemption from Pre -Application Procedures, as specified in
Resolution 82-318 is anticipated at this time. Storm King Mines
has explored the Colorado Joint Review Process and has determined
that the scope of the project is small enough and the other permits
necessary are sufficiently limited, that participation in the
Colorado Joint Review Process will not be desirable at this time.
Public Hearings stipulated in Garfield County Regulations will
provide the primary forum for public involvement and project
review. A Permit to Mine is being requested from the Colorado
Mined Land Reclamation Division, concurrent with County review.
The only Federal involvement evident at this time is with regard
to one of the alternative disposal sites for processing waste
which is on Federal land. This site is undergoing environmental
analysis concurrent with the Garfield County Application and any
hearings associated with analysis and review will be scheduled at
the descretion of the Bureau of Land Management. These hearings
could be combined with Garfield County hearings upon Bureau of
Land. Management request and Commissioners approval.
Storm King Mines looks forward to successful development of
the project and the economic opportunities which it will provide.
Storm King Mines personnel will be available to answer any
questions that you might have. Please feel free to contact us
for any clarification of this Statement of Intent.
Respectfully submitted,
Allen D. Gray
President
cc: Dennis Stranger
Sam S. Arentz,/ III
Vice-President/Operations
January 6, 1983
Mr. Sam S. Arentz III
Vice President of Operations
9137 E. Mineral Circle
Englewood, CO 80112
Dear Mr. Arentz:
At the Regular City Council meeting of January 5, 1984, after a status
report on the Storm King Mine project, the City Council requested a
letter be sent to the representative of Storm King Mines expressing the
Council's recognition of the potential benefits Glenwood Springs would
realize from this project, such as increased employment, increased
commercial sales, stimulation of the real estate market, etc.
Councilmembers expressed some concern regarding the potential visual
impact from 1-70 and requested further information on the royalty versus
unity premiums for City coal. However, Council's overall attitude was
supportive. I wish to take this opportunity, on behalf of the Council,
to encourage your pursuits regarding the initiation of the development
of the Storm King Mine.
Sincerely,
Carl L. Schiesser
Mayor
City of Glenwood Springs
CLS/pks
STATE OF COLORADO RICHARDSMM, Governor
DEPARTMENT OF NATURAL RESOURCES
DAVID H. GETCHES, Executive Director
1313 Sherman St., Room 718, Denver, Colorado 80203 866-3311
January 10, 1984
Honorable Flaven Cerise
Garfield County Commissioner
P. 0. Box 640
Glenwood Springs, Colorado 81601
Dear Flaven,
Geological Survey
Board of Land Commissioners
Mined Land Reclamation
Division of Mines
Oil and Gas Conservation Commission
Division of Parks & Outdoor Recreation
Soil Conservation Board
Water Conservation Board
Division of Water Resources
Division of Wildlife
7,7u (7-7,177SWT-
JAN 191 84 u
GAhFlELU to. i'LANAER
Enclosed is a recent notice that we received about lease of 410 acres
to the Storm King Mine for refuse disposal. If the county has any
comments on this proposal, it would be helpful to know of them.
DJ:car
Enclosure
Sincerely yours,
it John
Assistant to the Director
Pt N 1 " 934
CO�a31oNF,R,q
• •
United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Grand Junction District Office
764 Horizon Drive
Grand Junction, Colorado 81501
January 5, 1984
Dewitt John
Colorado State Dept. of Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Dear Mr. John:
IN RELY REFER TO
7-162
2920
The Bureau of Land Management is considering a private sector land lease under
Section 302(b) of the Federal Land Policy and Management. Act. The land would
be utilized for coal refuse disposal by Storm King Mines of Englewood,
Colorado.
I have enclosed a map and a copy of the notice of realty action for the lease
proposal to assist you in reviewing and commenting on the proposal. Should
you have any questions on this matter, please contact either myself or David
Atkins at (303) 945-2341. Comments on the proposal must be received within 45
days.
Sincerely,
/Lk 1.444
sSO IATE District Manager
Enclosures:
Notice of Realty Action
Map
Identical Letters to:
Richard Soash
Scott McInnis
Richard D. Lamm
Colorado State Clearing House
• •
UNITED STATES DEPARTMENT OF THE INTERIOR
Agency: Bureau of Land Management
Action: Non-competitive Lease of Public Land in Garfield County, Colorado
ummary: The following described land is being considered for lease under
Section 302 of the Federal Land Policy and Management Act of 1976 (90 Stat.
2/62, 43 U.S.C. 1732) at no less than the appraised fair market rental
estimated to be approximately $20,040 annually, or $1,670 per month.
Sixth Principal Meridian
T. 5S., R. 90W.,
Section 35: S1/2SE1/4, E1/2SE1/4SW1/4
T. 6S., R. 90W.,
Section 4: Lots 2,3,4, S1/2NW1/4, SW1/4NE1/4
Section 5: Lot 1, SE1/4NE1/4
The area described aggregates 410.41 acres in Garfield County, Colorado. The
land is located approximately 7 miles west of Glenwood Springs, Colorado, and
lies immediately south of the Colorado River.
Lease of the above described lands has been proposed by Storm King Mines of
Denver, Colorado, for the disposal of refuse generated by their proposed coal
mining operations. Their proposed mine involves non-federal lands and
minerals and is located immediately south and west of the proposed refuse
area.
The Bureau of Land Management is considering the long-term non-competitive
lease to Storrs King Mines to authorize and collect rental at the appraised
fair market value of the use. The lease would be dependent upon the
organization filing a lease application including information required by
Title 43 Code of Federal Regulations, part 2920.52. The terms and conditions
applicable to any lease issued under this notice are those in 43 CFR 2920.7.
information about the proposal can be reviewed in the Bureau of Land
Management, Glenwood Springs Resource Area Office, 50629 Hwy. 6 and 24, P.O.
Box 1009, Glenwood Springs, Colorado 81602, telephone (303) 945-2341.
The lessee would be required to reimburse the United States for reasonable
administrative and other costs incurred by the United States in processing the
lease and for monitoring construction, operation, maintenance, and
rehabilitation of the facilities authorized. The reimbursement of costs would
be in accordance with the provisions of 43 CFR 2920.6.
For a period of 45 days from the date of publication of this notice in the
Federal Register, interested parties may submit comments to the District
Manager, Bureau of Land Management, Grand Junction District Office, 764
Horizon Drive, Grand Junction, Colorado i'15011. Any adverse comments will be
c\,aluated by the District Manager, who may vacate or modily this realty action
• •
and issue a final determination. In the absence of any action by the District
Manager, this realty action will become the final determination of the
Department of the Interior.
12/15/83 /s/ Wright Sheldon
Date Wright Sheldon, District Manager
Grand Junction District. Office
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Proposed Land Lease
Coal Refuse Disposal
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T. 5 S., R. 90 W., 6th P.M.
Sec. 35: S'2- S E'., , E' S E'-4SW',
T. 6 S., R. 90 W., 6th P.M.
Sec. 4: Lots 2, 3, 4, S2NW, SW'.;NE4
Sec. 5: Lot 1, SE1/4NE1/4
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Storm King Mines
Mr. Dennis Stranger
Garfield County Planning
2014 Blake Avenue
Glenwood Springs, CO 81601
•
December 28, 1983
Dear Dennis:
I wish to thank you for your efforts and participation
in the meetings at Glenwood Springs and New Castle.
We feel that the meetings were successful in defining
the public perception of our proposed operations. Based
upon this input we can approach valid, economic solutions
to areas of concern.
The opportunity to address the planning commission was
greatly appreciated. The more fully Storm King's project is
understood, the fewer the misconceptions and the better the
communication.
Again, many thanks for your time and efforts and best
wishes for the Holiday Season.
Sincerely,
Sam S. Arentz, III
Vice-President/Operations
ssa/bf
Storm King Mines, Inc. • 9137 East Mineral Circle • Englewood, CO 80112 • (303) 792-2625