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HomeMy WebLinkAbout3.0 Correspondence• DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 February 9, 2006 Garfield County Planning Department Planning Director 108 8th St Ste 201 Glenwood Springs, CO 81601-3355 Re: Coal Ridge No. 1 Mine (Permit No. C-1984-065) Permit Renewal Application No. 5 (RN -5) Dear Garfield County Planning Department: STATE (1k' cnTORApp RECEIVED FEB 1 3 2006 CAr HLL D COUNTY BUILDING & PLANNING COLORADO DIVISION OF MINERALS GEOLOGY R E CIA M ATIO N• MI NI NG SAFETY•SCIENCE Bill Owens Govemor Russell George Executive Director Ronald W. Cattany Division Director Natural Resource Trustee The Division of Minerals and Geology hereby issues notice, in accordance with Title 34, Article 33, Section 118, Paragraph 3, of the Colorado Revised Statutes, that on February 9, 2006, an application to renew an existing permit to conduct coal mining operations at the Coal Ridge No. 1 Mine was considered complete for the purposes of filing. All this date of filing. review and comment periods as provided in the Colorado Surface Mining Reclamation Act and the Rules initiate from C.B. Minerals Company, LLC has applied for renewal of the DMG permit for the Coal Ridge No. 1 Mine. The mine is in permanent cessation status and no reinstatement of coal production or further disturbance have been proposed. The renewal will allow continuation of approved reclamation work and monitoring activities. The underground coal described as follows: mine is on land located approximately 7 miles west of Glenwood Springs, Colorado. The permit area is further T6S, R91 W; Portions of Sections 1 and 12 T6S, R9OW; Portions of Sections 5, 6, 7, 8, 9, 15 and 16 The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain & New Castle. A copy of the renewal application is available for public inspection at the Garfield County Clerk and Recorder, 108 8th Street, Ste 200, Glenwood Springs, CO 81601. For additional information, to provide written comments, or request an informal conference, contact the Division of Minerals and Geology, Room 215, 1313 Sherman Street, Denver, Colorado 80203, (303) 866-3567, within thirty days (30) after the last public notice in the Glenwood Springs Post Independent. Sincerely, > R. Burnell Environmental Protection Specialist JRB/Jrc C -RN -04 .84065 JRB 20060209_14552 yttice of Mined Land Reclamation Office of Active and Inactive Mines Colorado Geological Survey DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 July 23, 1999 • STATE OF COLORADO Mark Bean Garfield County Planning Department Planning Director 109 8th St Ste 200 Glenwood Springs, CO 81601 Re: Coal Ridge No. 1 Mine (Permit No. C-84-065) Technical Revision Application No. 16 (TR -16) Removal of a Strip of Ground form the Permit Area Dear Mr. Bean: DIVISION OF MINERALS GEOLOGY RECLAMATION MINING•SAFETY Bill Owens Governor Greg E. Walcher Executive Director Michael B. Long Division Director The Division of Minerals and Geology hereby issues notice, in accordance with Title 34, Article 33, Section 116, Paragraph 4, of the Colorado Revised Statutes, that on July 23, 1999, an application to revise coal mining operations at the Coal Ridge No. 1 Mine was considered complete for the purposes of filing. The revision was submitted by NCIG Financial, Inc.. All review and comment periods as provided in the Act and the Regulations initiate from this date of filing. This proposed technical revision (revision) provides for removal of an approximately 400 -foot -long by 25 -foot -wide strip of ground from the permit area. This action reduces the permit boundary to areas south of County Road 335. This area was a corridor for a water pipeline from the Colorado River to the facilities area of main permit area. There was no disturbance to soils or vegetation in this area of the permit. The underground coal mining operation is on land located approximately 7 miles West of Glenwood Springs, Colorado. The permit area is further described as follows: T6S, R91W; Portions of Sections 1 and 12 T6S, R9OW; Portions of Sections 5, 6, 7, 8, 9, 15 and 16 The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain and New Castle. A copy of the technical revision application is available for public inspection at the Garfield County Courthouse, 109 8th St Ste 200, Glenwood Springs, CO 81601, and at the Division office. For additional information or to provide written comments, contact the Division of Minerals and Geology, Room 215, 1313 Sherman Street, Denver, Colorado 80203, (303) 866-3567. In order for us to comply with regulatory time frames, we request that comments be submitted within fifteen (15) days of this letter. If no comments are received by then, we will proceed on the assumption that you have no concerns with, or objections to, the applicant's proposal. Sincerely, Byron G. Walker Environmental Protection Specialist BGW/JRC Et ED JUL 2 9 1999 M:\OSS\JRC\TEMO\R0306504 • 0 SCHENK, KERST & deWINTER, LLP A PARTNERSHIP OF PROFESSIONAL CORPORATIONS ATTORNEYS AT LAW JOHN R. SCHENK DAN KERST WILLIAM J. deWINTER, III CAROLYN M.STRAUTMAN Loyal E. Leavenworth Leavenworth & Associates, P.C. P.O. Drawer 2030 Glenwood Springs, CO 81602 302 EIGHTH STREET, SUITE 310 GLENWOOD SPRINGS, COLORADO 81601 TELEPHONE: (970) 945-2447 TELECOPIER: (970) 945-4767 November 17, 1999 Re: CB Minerals Company LLC/Grand Hogback Coal Reserves Dear Lee: As we had previously advised in our letter dated October 19, 1999, our firm represents CB Minerals Company LLC. We also represent NCIG Financial, Inc. CB Minerals Company is not only a lessee of Leonard E. Rippy, but is also the holder of all of the coal and other mineral rights formerly owned by CF&I from Leonard Rippy's property west across the Colorado River up to Harvey Gap. NCIG Financial, Inc. owns or controls most of the remainder of the coal reserves in the Grand Hogback formation eastward from the Rippy lease to beyond the Riverbend Subdivision. NCIG Financial, Inc. and CB Minerals Company LLC, together, own or control about 8 miles of the strike. The executive officers of NCIG Financial, Inc. and the managers of CB Minerals Company LLC requested that I write this letter to you, as legal counsel to the Town of New Castle, as a means of calling appropriate attention to the long-standing and persistent intent of the owners and lessees of the Grand Hogback coal reserves to mine this valuable natural resource when coal prices warrant a mine operation. Since 1976, activities on this project have included assembling the reserves, obtaining coal samples from drill cores, testing the quality of the coal, securing water rights, conducting engineering studies, preparing alternative mine plans and obtaining federal, state and county permits for a mine operation. The owners recognize that local permitting must be renewed or obtained anew, but also note the state permit remains in effect, though requiring some amendment. They have been involved, since 1980, initially as small investors in Storm King Company, and since 1990, as sole owners or controlling parties of the project. It should be emphasized that NCIG Financial, Inc. and CB Minerals Company LLC do not oppose other residential, commercial or industrial developments in the vicinity of their properties. In fact, at some point in the future, it is possible that residential housing development would be sought for portions of NCIG Financial's surface property appropriate for such use. However, the first priority of both companies has been and continues to be the extraction of the coal from the Grand Hogback. The companies have been diligent and steadfast in the pursuit of this objective and intend to protect their interests and the substantial expenditures of money and time committed to the mine project since 1980. Therefore, they have asked that these facts be clearly stated for the record and carefully considered by the Town Board in any deliberations on rezoning in the vicinity of the 1:\i\CB M'vieealslfuve,rvoM 2 - v2.wpd RECEIVED NOV 1 8 1999 Page 1 of 2 n its considerations of Grand Hogback. Both companies encourage the Town Board include by Garfield County. the new Comprehensive Plan, the existing Coal Ridge PUD which approved PUD allows mining activity in that zone. Without li limiting intra e choices, the companies may ng area approximately one mile request some changes to this PUD including shifting to the west. Such future possibilities should not be neglected in the Comprehensive Plan considerations. These companies are committed to a mine operation that is highlyopr operly sitivedbothwill beo environmental issues, and to communitycommun y. Theybelieve pay is the highest, on average, of any of significant value to the New Cas employment sector in the State of Colorado. That pay a� vseverance tel esb ota$59,$216,000000.00 ng ,$2 6,OOOe00 per year. A mine producing 2,000,000 tons per year will genera ons rable portion year. The State of Colorado will receive 50% of the tax annually, but ac of idemine were to of the e balance will accrue to the benefit of New Castle if most of theemployees in New Castle. In addition, the mine will guarantee significant property tax revenue for the various local governments in the New Castle area. From a property aa tioneistnot being proposed ve, it would be atfinancially this advantageous for the city to annex the mine, although such an time. Purchase of goods and services in New Castle by the mine and its employees will also produce sales tax revenue. In summary, the officers and managers of NCIG1Fienaon ll, Inc. and as CB Mas inets rals Company LLC believe that the Grand Hogback is a resource for asset has figured prominently in the history of New Castle and s ould not zbe dg d deor ignored t as a potential future source of general benefit in the land u p g approval decisions made by the Town of New Castle. Thank you for s your and the Planning Co muni taon. We assume you will share this viewpoint ease advise. Board of If further information is desired, p Very truly yours, JOHN R. SCHENK JRS/clh cc: Rushton O. Backer Dennis Stranger Pat Fitzgerald Mark Bean 1:\I\CB MuienlaVsaveuwurth? - v2.wM1 Page 2 of 2 • cvci r7 g w 0 z 0 0 z z 0 4 Q 111 0 1 • STATE COLORADO COLORADO DEP,ENT OF HEALTH Dedicated to protect) improving the health and environment of the r.,of Colorado 4300 Cherry Creek D. oratoryBuildng Denver, Colorado 802'10 L4Denver, E. lith Avnue Phone (303) 692-2000 Denver, Colorao 80220-3716 (303) 691-4700 January ; 1993 CERTIFIED "EL NO. P 145903 940 Lacy Loadot� iacility Coal Ridge ;#] Mine E. Peter hathlies 7476 E. irka,sas Ave.,t104 104 Denver, CO 8)217 Re: Lacy boadout FaLlity Permit No. Co -650025 Garfield Count} 03 Q3199 Roy Romer Govemor Patricia A. Nolan, MD, MPH Executive Director Dear Mr. Matthies: This letter is to aknowledge receipt of your annual discharge permit fee for fiscal year 1993 in the amount of $360.00. Effective January Nr 1993, the suspension of your permit, which was imposed ue to non-payment of ees, has been lifted. If your facility discharges, you may now resume dischat3ing per the conditions of your permit. Thank you for yoiC cooperation in this matter. �S�incerely, it Seth M. Golds-ein `G�- c - Fiscal Offic4r Water Quali$Y Control Division SMG/CRM/dqJ xc: Louann Gaines, Permits & Enforcement, WQCD Janet Fujita, Environmental Protection Agency Garfield County Health Department Dwain Watson, District Engineer, WQCD Office of the Attorney General MS -3 File suspenlift.crm From : BACKER 213-82704 NCIG-FLNANCIAL, INC. VIA FAX July 15, 1991 Mr. Mark Bean Planning Department Garfield County 109 8th Street Glenwood Springs, CO 81601 • Post Office Box 92401 Los Angeles, CA 90009 Telephone 213/827-1934 Fax 213/H27,1934 JUL 16 1991111 GARFIELD COUNTY P02 Dear Mark: NCIG Financial, Inc. has decided, after careful consideration, to withdraw its Supplemental ApplicatiQn for a Special Use Permit to simplify n simpl and clarify ifceai elements of the Application and to provide back-upreference or authority for certain statements or assertions made in the application. The company expects the refinements to the Application to facilitate theease of subsequent processing- The Application will be re -submitted in the near future. Sincerely, NCIG FINANCIAL, INC. Rushton O. Backer, President ROB:ap k� COLORAD( ) H:PARTmH:r OFA HEALTH ROY RON4ER Governor JOEL KOHN Interim Executive Director June 11, 1991 [lift3711if { JUN 12 1991 GARFIELD CUUNTY CERTIFIED MAIL: P 330 088 629 E. Peter Matthies President Inc. NCIG Financial, #1047476 East Arkansas Avenue, Denver, CO 80231 RE: Transfer of ownership New Castle Energy Corporation Permit No.: COG -850025 Garfield County 4210 East 11th Avenue Denver, Colorado 80220-3716 Mat thi es • The above-referencedchange Phone (303) 320-8333 Dear Mr. . permit has been modif e to reflect owners p anrom New Castle Energy Corporation to Enclosed, for your permit for which you have assumed responsibility, coverage records, is a copy of the ourelf with tme and liability. Please familiarize y eats of the permit to ensure that all terms and conditions are requirements complied with. permit, Please contact If you have any questions about this matter or your this office at (303) 331-4761. Telefax Numbers' Main Building/Denver (303)322-9076 Ptarmigan Place/Denver (303)32_0-1529 First National Bank Building/Denver (303) 355-6559 Grand Junction Office (303) 248-7198 Sincerely, printed on recycled paper Louann Gaines Staff Assistant Permits and Enforcement Section Water Quality Control Division Environmental Protection Agency cc: Permits Section, Local Health Departmentort Section, WQCD Stan May, Field Supp ort Section, WQCD Dwain Watson, D.E., Field Supp WQCD Anne Ihlenfeldt, Permits and Enforcement Section, Connie Moreno, Administration Section, WQCD Enclosure COLORADO DEPARTMENT 0 EALTH Water Quality Control Division 4210 East llth Avenue Denver, Colorado 80220 I. II. CERTIFICATION NCIG FINANCIAL, INC. LACY LOADOUT FACILITY PERMIT NUMBER: COG -850025, GARFIELD COUNTY TYPE OF PERMIT: FACILITY INFORMATION: A. Facility Type and Fee Category: B. SIC No.: C. Legal Contact and Facility Contact: (Operator) (Owner:) E. Facility Location: F. Discharge Point: G. Discharge Flow: Coal Mining (Surface Runoff Only) Category 7, Subcategory 5 - General Permits: Coal Mining - Current fee $360/year per CRS 25-8-502 1222 (Butuminous Coal Underground Mining) E. Peter Matthies, President New Castle Energy Corporation 7476 East Arkansas, No. 104 Denver, CO 80231 (303)+337-3877 Denver Rio Grande Land Company/James Holt P.O. Box 5482 Denver, CO 80217 (303)+595-2339 The Lacy Loadout facility is located in the SW 1/4, NW 1/4, Sec 23, T6S, R94W west of Rifle, Colorado, as shown in figure 1 of the permit. 001 - the discharge from the facility containment pond, and prior to mixing with the Colorado River, as shown in figure 2 of the permit. 001 = unknown The sedimentation pond was designed to contain and treat the 10 -year, 24-hour precipitation event. Permit No. COG4115 0000 Facility No. COG -8500025 CDPS GENERAL PERMIT FOR COAL MINING FACILITIES (SURFACE RUNOFF ONLY) AUTHORIZATION TO DISCHARGE UNDER THE COLORADO DISCHARGE PERMIT SYSTEM In compliance with the provisions of the Colorado Water Quality Control.Act (25-8-101 et. seq., CRS, 1973 as amended), facilities engaged in mining and processing of coal are authorized to discharge surface runoff from approved locations throughout-the be inaccordancewithconditionsofthis permit. tate of rado tdaState. Such discharges shall This permit specifically authorizes. NCIG FINANCIAL, INC. to discharge from facilities identified as Lacy Loadout facility located in the SW 1/4, NW 1/4, Sec. 23, T6S, 8946,1, west of Rifle, Colorado to the Colorado River as of this date March 6, 1991 This permit and the authorization to discharge shall expire at midnight, June 30, 1992. Signed this 8th day of March, 1988 COLORADO DEPARTMENT OF HEALTH caul Ferraro, Director Water Quality Control Division This facility permit contains 25 pages. CERTIFIED LEVIER NO r 33° o f 6 g DATE S1GED & " 0' -P r EFFECTIVE DATE fa PERMIT a 3 Corrected 06/11/91 • • COLORADO DEPARTMENT OF HEALTH Water Quality Control Division 4210 East llth Avenue Denver, Colorado 80220 (303)+320-8333, Ext. 3740 APPLICATION FOR TRANSFER AND ACCEPTANCE OF TERMS OF A COLORADO PERMIT 1 for transfer to me of this Colorado Permit No. CO -9-8500025 I hereby apply Corp I have reviewed this which was issued to New Castle Ener9ce and liability, 1 991 permit and accept respo 1ities,overa g effective April 18, NEW OWNER/OPERATOR NCIG Financial Inc . Coal Ridae No. 1 Mine Facility Name Mailing Address 7476 East Arkansas Avenue . 1 State CO Zip Code 80231 County, City Denver Telephone Number (303) 337 Area Code Authorized Agent E. Peter Matthies rint) 4.4 Signature Titlepresident. NCIG Financial. Inc. Date J n AS previous owner, I hereby agree to the transfer of the above referenced permit and all responsibilities thereof. PREVIOUS OWNER/OPERATOR New Castle Energy Corpoartion Facility Name Authorized Agent E. Peter Matthies (Print) Title Date • ... ation LOLORALX) DEPARTMENT OFA HEALTH ROY ROMER Governor JOEL KOHN Interim Executive Director 4210 East 11th Avenue Denver, Colorado 80220-3716 Phone (303) 320-8333 Telefax Numbers: Main Building/Denver (303)322-9076 Ptarmigan Place/Denver (303)320-1529 Fust National Bank Building/Denver (303)355.6559 Grand Junction Office (303) 248-7198 June 11, 1991 0 printed on recycled paper CERTIFIED MAIL: P 330 088 629 E. Peter Matthies President NCIG Financial, Inc. 7476 East Arkansas Avenue, #104 Denver, CO 80231 RE: Transfer of Ownership New Castle Energy Corporation Permit No.: COG -850005 Garfield County Dear Mr. Matthies: The above -referenced permit has been modified to reflect an ownership change from New Castle Energy Corporation to NCIG Financial, Inc. Enclosed, for your records, is a copy of the permit for which you have assumed responsibility, covere���n�o ty. P familiarizee yourself � the requirements of the p ensure that alltermsand eonditionsare complied with. If you have any questions about this matter or your permit, please contact this office at (303) 331-4761. Sincerely, aid Louann Gaines Staff Assistant Permits and Enforcement Section Water Quality Control Division cc: Permits Section, Environmental Protection Agency Local Health Department Stan May, Field Support Section, WQCD Dwain Watson, D.E., Field Support Section, WQCD Anne Ihlenfeldt, Permits and Enforcement Section, WQCD Connie Moreno, Administration Section, WQCD Enclosure COLORADO DEPARTMENT OF-EiEALTH Water Quality Control Division 4210 East llth Avenue Denver, Colorado 80220 CERTIFICATION NCIG FINANCIAL, INC. COAL RIDGE #1 MINE PERMIT NO. COG -850005 (formerly CO -0040894) GARFIELD COUNTY FACILITY TYPE: FEE CATEGORY: SIC NO.: LOCATION: LEGAL AND LOCAL CONTACT: RECEIVING WATERS: SUB -BASIN, SEGMENT: CLASSIFICATION: DESIGN CAPACITY: Coal Mining (surface runoff only) Category 07, Sub -category 5 - General Permits, Coal mining - Current fee $340/year per CRS 25-8-502 1211 In the NW 1/4, NE 1/4, Sec 6, T5S, R9OW; approximately 3 miles east of New Castle, CO. E. Peter Matthies President 7625 East Napa Place Denver, CO 80237 (303)+779-5901 Unnamed tributaries to the Colorado River Segment 4, Lower Colorado River sub -basin and basin Recreation, Class 2 Aquatic Life, Class 2 (Cold) Agricultural Use Ponds are designed to contain the 10 -year, 24-hour precipitation event. Permit No. COG -650000 Facility No. COG -85000b CDPS GENERAL PERMIT FOR COAL MINING FACILITIES (SURFACE RUNOFF ONLY) AUTHORIZATION TO DISCHARGE UNDER THE COLORADO DISCHARGE PERMIT SYSTEM In compliance with the provisions of the Colorado Water Quality Control Act (25-8-101 et. seq., CRS, 1973 as amended), facilities engaged in miningand processing of coal are authorized to discharge surface runoff from approved locations throughout the State accordanceColorado withto conditionsspecified fwaters this permit. State. Such discharges shall be in This permit specifically authorizes NCIG FINANCIAL, INC. to discharge from facilities identified as the Coal Ridge #1 Mine; the NW 1/4 of the NE 1/4 of Section 6, T5S, R9OW to unnamed tributaries to the Colorado River as of this date July 24, 1989 located in This permit and the authorization to discharge shall expire at midnight, June 30, 1992. Signed this 8th day of March, 1988 COLORADO DEPARTMENT OF HEALTH aul Ferraro, Director Water Quality Control Division This facility permit contains 25' pages. CERTIFIED LETTER NOZ1 74ss 7 DATE Sir -VD a1./ EFFECTIVE. DATE PERMIT ' at Corrected 06/11/91 9 • • COLORADO DEPARTMENT OF HEALTH Water Quality Control Division 4210 East lith Avenue Denver, Colorado 80220 (303)+320-8333, Ext. 3740 APPLICATION FOR TRANSFER AND ACCEPTANCE OF TERMS OF A COLORADO PERMIT I hereby apply for transfer to me of this Colorado Permit No. CO- G-8500005 which was issued to New Castle Energy Corp . I have reviewed this permit and April responsibilities, po sibilities, coverage and liability, r effective p NEW OWNER/OPERATOR NCIG Financial, Inc Facility Name Coal Ridge No. 1 Mine Mailing Address City Denver 7476 East Arkansas Av. #104 State CO Telephone Number (303) 337 3877 Area Code Authorized Agent E. Peter Matthies Signature Title Zip Code 80231 County Print) ?rf.•�• v1'! President, NCIG Finacial, Inc. Date June 5, 1991 AS previous owner, I hereby agree to the transfer of the above referenced permit and all responsibilities thereof. PREVIOUS OWNER/OPERATOR New Castle Energy Corporation Facility Name Coal Ridge No. 1 Mine Authorized Agent F;_ pptpr MatthiPs (Print) 1Gl'�i Signature Title former President, New Castle Energy Corpoartio Date June 9. 1941 COLORADO DEPARTMENT OFARE ALTH ROY ROMER Governor JOEL KOHN Interim Executive Director 4210 East 11th Avenue Denver, Colorado 80220-3716 Phone (303) 320-8333 Telefax Numbers: Main Building/Denver (303)322-9076 Ptarmigan Place/Denver (303) 320-1529 First National Bank Building/Denver (303)355.6559 Grand Junction Offia (303) 248-7198 May 3, 1991 Gerald M. Grewe Rothgerber, Appel, Powers & Johnson Suite 2800 One Tabor Center 1200 Seventeenth Street Denver, CO 80202 RE: Transfer of Ownership New Castle Energy Corp. Permit No.: COG -850005 & COG -850025 Garfield County Dear Sir: Enclosed is a transfer of ownership form which must be completed and returned to this office before we can proceed with your request to transfer the above -referenced permit. Please ensure that both the former owner and the new owner complete and sign the form. The new owner should provide the names, addresses, and telephone numbers of both a legal and local contact. The legal contact may serve as local contact. Please return the completed form within thirty days. Section 6.9.3. (3) of the Colorado State Discharge Permit Regulations state: "The permit shall not be transferred to another party without prior notification to the Division and requirements of section 6.9.6 and 6.16.0 have been met." This means that before the Division will process the transfer, the annual administrative fees must be paid and all discharge monitoring reports up to the date of transfer must be received by the Division. If you have further questions with regard to the transfer process please contact me at (303)+331-4761. Questions relating to the annual fee can be directed to Ms. Connie Moreno at (303)+331-4539 . Your cooperation in this matter is appreciated. Sincerely, pnnted on recycled paper Louann Gaines, Staff Assistant Permits and Enforcement Section Water Quality Control Division cc: Permit Section, Environmental Protection Agency Dwain Watson, D.E., Field Support Section, WQCD Connie Moreno, Administration Section, WQCD MS -3 Enclosures • Carter & Sands, P.C. =201 West Third St., Suite 201 P.O. Box 192 Rifle, Colorado 81650-0192 Facsimile: (303) 625-3989 Telephone: (303) 625-1075 May 20, 1991 Attorneys at Law Stephen L. Carter Edward P. Sands Mr, Don K. DeFord Garfield County Attorney FAX (303) 945-2379 Glenwood Springs, CO 81601 SUBJECT: NCIG Financial, Inc., Request for Amendments to Special Use Permits Dear Don: This letter is written on behalf of the Garfield Citizens Alliance and certain residents living in the Riverbend area. Needless to say, my clients are extremely disappointed that the Board of County Commissioners failed to heed the sound legal advise you rendered and now desire to entertain NCIG Financial's request for amendments to its special use permits. Unfortunately, once again it appears we may be involved in an adversarial relationship. In order to prepare for the upcoming hearing before the Board of County Commissioners on NCIG Financial's request to amend the terms and conditions for the issuance of the subject special use permits, I would appreciate it if you could provide me with information regarding the following questions and legal issues: 1. What is the basis for jurisdiction? I can find no provi- sions in the Garfield County Zoning Resolution which specifically authorizes the amendment of the terms of a special use permit or the conditions for the issuance thereof, nor the procedure for doing so. Moreover, my clients are particularly concerned that the Board is considering amending certain conditions which have already expired without compliance by the applicant. As you are aware, Colorado's vested property rights statutes, Section 24-68-101, et seq., C.R.S., expressly apply to conditional or special use plans. Section 24-68-103, C.R.S., provides that a local government may approve a site specific development plan upon such terms and conditions as may reasonably be necessary to protect the public health, safety, and welfare. Although such conditional approval results in a vested property right, the statute provides that failure to abide by such terms and conditions will .result in a forfeiture of vested property rights. It is clear the applicant obtained vested property rights, subject to the conditions contained Don K. DeFord • • May 20, 1991 Page 2 of 4 in the authorizing resolution, when Resolution No. 90-083 was adopted. Thus, even if the Commissioners approve the requested amendments, does section 24-68-103, C.R.S., mean the revised special use permit will not- be a vested property right because the applicant failed to abide by' -previous conditions? Section 24-68-104, C.R.S., provides the vesting period shall not be extended by any amendment to a site specific development plan unless expressly authorized by the local government. Is the applicant requesting an extension of the vesting period? Has the County requested the applicant to submit supporting documentation for the proposed amendments including information concerning impact mitigation? If not, why not? Has the Board considered submitting the amendments to the Planning Commission? If not, why not? Is the hearing on the requested amendments considered a quasi- judicial hearing for purposes of review under Rule 106(a)(4), C.R.C.P.? Clearly, the Board's handling of the requested amendments could not have been anticipated at the time of filing our original action. 2. Who is permitted to seek amendments to a special use permit. and what legal basis are you relying on? My clients are perhaps interested in requesting a number of amendments to Resolution No. 90- 083 as well. Is it the position of the County that only the applicant may request amendments? May the Board on its own motion amend a special use permit and, if so, how does that affect the applicant's vested rights? Once the applicant requests amendments, in your opinion is the applicant waiving his vested rights which then allows surrounding property owners affected by the development to request amendments? In responding, I would appreciate it if you could indicate what legal basis you are relying on in rendering these ,:prions . 3. What is the deadline for the applicant to submit materia]. for the Board of County Commissioner's review. In reviewing the May 10, 1991, letter from David R. Sturges on behalf of NCIG Financial, Inc., it appears the applicant is requesting changes that were not before the Board when the Board set the hearing. For example, the applicant now desires to phase landscaping and not construct the off- site road improvements until the commencement of mine activities. Moreover, the applicant now desires to commence on-site road improvements within one year of commencement of on-site construction activities. Finally, the requested amendments would permit the County at its sole discretion to issue separate special use permits for each land use. A11 of these changes are very substantive in nature and constitute much more than extending time deadlines. Will the applicant be allowed to continue to request new amendments up to and during the hearing? Is the Garfield Citizens Alliance and surrounding property owners permitted to submit documents to the County for consideration up to the hearing? Don K. DeFord May 20, 1991 Page 3 of 4 4. What issues may be raised at the hearing? My clients believe the amendments requested by NCIG Financial constitute much more than extending time deadlines because of litigation and the applicant'sfailure to obtain a Mined Land Reclamation permit for the Lacey load -out. The proposed amendments are very substantive in nature. Because of the applicant's failure to exercise due diligence, is' -.the applicant's ability to perform once again an issue for discussion? Because the applicant now desires three years to complete off ;site road improvements, is the performance bond still sufficient? Has.', inflation been taken into account? If the applicant obtains a special use permit for mine activities, without a Lacey load -out permit, will the applicant be permitted to mine? If so, does the issae of storage capacity for the mined coal on site need to be revisited? Since the applicant now desires to substantively change the landscaping provisions, are any issues concerning landscaping or mitigation of aesthetics relevant? Since the special use permit for mining activities may no longer be tied to construction of the Lacey load -out, are issues concerning whether or not the applicant still desires to construct a load -out in Riverbend relevant? Does the County even have the power to increase the performance guarantee because of inflation considerations, since the applicant hasn't requested an amendment to that provision? 5. What are the procedural "ground rules" that will be followed b 'the Bo- d of Count Coumissioners at the hearin•? Will either the applicant or others desiring to testify be limited as to time? What kind of evidence can surrounding property owners submit? Will interested property owners in the surrounding area be permitted directly, or through counsel, to cross-examine the applicant and its witnesses? will this cross-examination have to be directed through the chair? In conclusion, as you know from the original hearings on the .;applicant's request for special use permits, it is my clients' desire to -advise the County up front regarding their legal concerns in order to avert possible litigation. My clients have never believed the best way to- settle land use disputes in Garfield county is through the courts. Nevertheless, my clients believe it is important for the rules to be followed. Thus, I wish to advise you at this time that my clients do not believe the Board of County Commissioners have jurisdiction to amend a resolution on an ex post facto basis when the terms of said resolution have expired by their own terms. We see no legal distinction between the special use permit itself, which you have advised cannot be amended, and a resolution that contains strict time deadlines for the effectiveness of the authorizations contained therein. The County Zoning Resolution apparently contains no authorization for the amendments requested, and we do not believe such powers are inherent in the Board. My clients believe that once an authorization for a permit has expired, the applicant must apply for a new permit, meeting all requirements for the application of a special use permit contained Don K. DeFord • • May 20, 1991 Page 4 of 4 in the County's land use regulations. For example, since the applicant now desires to delay construction of off-site road improvements until the commencement of mining activity, the impacts generated by construction activity must be considered. Unfortunately, the- full impacts cannot be known without requiring the applicant to sub'iit an impact statement as provided by the County Zoning Resolution. Last year, when the applicant desired amendments to its special use permit, the county determined the applicant would have to follow all procedures set out for the issuance of a new permit. We believe the applicant again must be required to follow those procedures. Ali.nough my clients intend to participate in the scheduled hearing, we do not believe there is any legal basis for the hearing at this time, under the County Zoning Resolution and applicable law. Thank you very much for your consideration and cooperation. By EPS1i dkn XC•.G. McKennis V. VanEngelenberg Yours truly, CARTER & SANDS, P.C. Ibt -,(9iA)\e May'22, 1991 • • 4212 Pin Oak Drive Loveland, CO 80538 303-669-4172 JUN 4 1991 __ L couNry uN1miSu S• oNERS Route Lam: mold uckey Marian 111 Board of County Commissionersv w1)1V7-Y Garfield County Courthouse Suite 301 109 8th Street Glenwood Springs, CO 81601 Dear Sirs: I have received notice of the hearing to take place at 1:30 p.m., May 28, 1991 concerning Garfield County Resolution No. 90-083. I will not be able to attend the meeting in person but I would like to register my support for approval of the requested amendments to that resolution. I sincerely hope that you will continue to give every encouragement to NCIG Financial, Inc. in the development of the mine and adjunct facilities referred to in Resolution No. 90- 083. Sincerely yours, kZe_t_) Verlene B. White CC: NCIG Financial, Inc. IRA C. ROTHGERBER (1878-1956) WALTER M APPEL (1879-1961) IRA C. ROTHGERBER, JR COUNSEL GERALD M. GREWE RSERBER, APPEL, POWERS & JOHNS* SUITE 2800 ONE TABOR CENTER 1200 SEVENTEENTH STREET DENVER, COLORADO 80202 TELEPHONE (303) 623-9000 April 30, 1991 Colorado Department of Health Water Quality Control Division Attention: Mr. Robert J. Shukle, Chief Permits & Enforcements Section 4210 East Eleventh Avenue Denver, Colorado 80220 Our -1 r1, DENVER TECHNOLOGICAL CENTER 5251 OTC PARKWAY SUITE 1400 ENGLEWOOD. COLORADO 8011? (303) 796-2200 TELECOPIER (303) 623.9222 CABLE ADDRESS APROPO. DENVER MAY 0 2 :t;91 WrIrn Re: NPDES Permit Nos. COG -850005 (Coal Mine Site) COG -850025 (Loadout near Rifle in Garfield County) Dear Mr. Shukle: This firm represents NCIG Financial, Inc., a Minnesota corporation ("NCIG"). Please be advised that NCIG has purchased the assets of the New Castle Energy Corporation Bankruptcy Estate and NCIG has taken an assignment of the above -referenced water discharge permits. For your convenience I enclose a copy of the Trustee's Special Warranty Deed and the Assignment relating to the water discharge permits, among other things. At your earliest convenience, please acknowledge, in writing, the transfer of these permits, and please inform the undersigned if there are any additional steps which must be taken in order to completely transfer the water discharge permits from New Castle Energy Corporation to NCIG. Thank you for your assistance in this matter. If you have any questions or concerns, please do not hesitate to call the undersigned. Very truly yours, ROTHGERBER, APPEL, POWERS & JOHNSON Gerald M. Grewe GMG:bc Enclosures • • Agreement Between NCIG Financial, Inc. and Greg McKennis and Jill C. McKennis, Whereas, NCEC, as the predecessor -in -interest to NCIG Financial, Inc., applied to Garfield County for the authorization and issuance of a Special Use Permit (SUP) for their proposed underground coal mine; and the Garfield Citizens Alliance (GCA), Greg McKennis and other individuals who were reported to be members of the GCA or to be residents of the Riverbend Subdivision or persons who may be affected by the proposed underground coal mine voiced their questions, concerns, and opposition to this project during the public meetings and public hearings before the Planning and Zoning Commission and Board of County Commissioners of Garfield County; and Whereas, Garfield County, after consideration of the matters raised and discussed on the record at these public hearings, voted on October 16, 1990 to issue the requested SUP pursuant to the terms of Garfield County Resolution No. 90-083; and Whereas, the GCA and certain named individuals filed a Rule 106 appeal and § 1983 civil rights complaint against Garfield County and the individual commissioners for their actions in approving this SUP; and Whereas, NCEC and NCIG filed a Rule 106 appeal against Garfield County challenging certain terms and conditions of this resolution; and Whereas, the GCA also filed a Rule 106 appeal against the Colorado Mined Land Reclamation Board (CMLRBd) and Division (CMLRD) and NCEC for the CMLRBd's decision upholding the CMLRD's proposed decision to approve a permit for NCEC's proposed underground coal mine; and Whereas, NCIG, having purchased the assets of NCEC and thereby becoming NCEC's successor -in -interest in these matters, and Greg McKennis believed that it would be more productive for everyone involved if these parties could settle their differences in a less costly and 1 • • litigious manner, and that a developer could be responsive to the concerns and questions of citizens of the community within the limits of existing laws and regulations and the economic realities of launching a project of this magnitude and scope which might provide some economic opportunity to the residents of the community; and Whereas, the parties identified or referenced above by and through their avowed representatives have entered settlement negotiations concerning these matters of litigation and permitting for the purpose of settling all disputed matters arising between these parties while preserving the role and authority of legally constituted land use and permitting entities to deal with those matters under their legal jurisdiction Whereas, the parties hereto wish to enter this agreement for the purpose of settling all past and current disputed matters between themselves and affecting these specified local and state government entities. Now therefore the parties hereto agree that so long as NCIG has a special use permit or operates its property for coal mining as follows: 1. Noise Suppression. NCIG will provide that all above -ground mining equipment and operations will be fitted and operated with the best commercially available noise suppression devices and techniques at the time such equipment or operations are originally acquired or as malfunctioning devices are replaced, but no later than two (2) years after such equipment or operations become commercially accepted and available for equipment and operations. NCIG will consult with noise suppression specialists and landscaping specialists concerning noise suppression and visual impact mitigation structures and will provide for the construction of such dual purpose structures where and when such appreciable levels of noise suppression and visual impact mitigation goals can be reasonably and economically achieved by such structures. NCIG will provide to McKennis copies of all noise studies and data collected on or for NCIG's permitted coal mining and railroad loadout operations. 2. Truck Coal Hauling. NCIG will delay commencement of coal hauling until 7:00 a.m. and cease coal hauling at 8:00 p.m. until validated projections demonstrate that annual production will exceed 400,000 tons per year at which time the authorized hours of hauling under this agreement can commence at 6:00 a.m. and extend to 10:00 p.m. NCIG will assess off-site adverse noise impacts from its coal truck hauling operation between the hour of 6:00 and 7:00 a.m. and the hours of 8:00 and 10:00 p.m. and NCIG will implement the measure(s) which can best achieve the desired goal of minimizing the off-site adverse noise impact. For the purpose of this agreement "coal hauling" includes truck preparation and truck loading at the mine site. No hauling will take place on weekends or holidays. Notwithstanding the restrictions on hauling hours set forth herein, NCIG will be allowed to increase the hauling hours Monday through 2 • • Friday for a three year period of time, but only if coal production exceeds one million tons per year and providing that the right to do so is obtained from the County by means of modification of the SUP, and provided that NCIG has no other permitted loadout, other than the Lacy loadout. The three years may be consecutive or intermittent at NCIG's discretion. In the event that NCIG obtains approval for extended hour hauling, NCIG will assess the off-site noise impacts and implement the measures which best achieve the desired goal of minimizing the off- site adverse noise impacts. 3. Landscaping. NCIG will provide for the planting of 1-1/2 times the number of tree types and sizes currently set forth in the approved and required landscaping plan under Resolution No. 90- 083. Such future planting of trees shall seek to locate such trees on a ground elevation which maximizes its ultimate visual impact mitigation effect while considering its access to manmade or natural irrigation sources. NCIG shall implement, as provided above in section 1, the construction and use of wooden fence visual impact mitigation structures with noise suppression values to provide additional visual impact mitigation, consistent with applicable laws and regulations and subject to any applicable permitting requirements. Construction and use of such walls will be employed on an intermittent basis in conjunction with the placement of trees to achieve and maximize aesthetic relief. Approximately 700 lateral feet of eight (8') foot fence will be employed across the combined north faces of levels 2 and 3 upon which are constructed certain surface facilities, in addition to the requirements of Special Condition 2.I. of the of Resolution No. 90-083. All lighting on site shall only be the minimum necessary to meet federal standards for mine safety and that all lighting be focused inward toward the mine site. 4. Use of NCIG Real Property for Coal Mining Only, NCIG agrees that its real property shall only be used for activities necessary to conduct coal mining and coal loading while it is permitted for coal mining and coal loading, except that NCIG and its successors shall not be precluded by this provision from the use, lease or sale for use of its lands for agricultural or recreational purposes, consistent with and subject to applicable land use requirements. While so permitted or operated by NCIG, or its successors, this real property shall not be used as the location of or access to an electrical power plant. This restriction on primary and accessory land use shall terminate upon NCIG's or its successor's termination of a coal mining operation on this real estate and expiration and/or surrender of the special use permits and completion of reclamation through the planting of vegetation. 5. Surface Use. NCIG will not use nor permit the use of the surface of its real property between the northern boundary of CR 335 and the Colorado River for coal mining activities, except that NCIG may utilize an electrically powered water pump in this area for the utilization of NCIG's water rights. 3 • • 6. Expense Reimbursement. NCIG will reimburse the above identified or referenced parties for their actual costs, up to $45,000.00 for legal fees, costs, and expenses paid or incurred by these parties in their efforts related to these litigation or permit matters, per the attached Exhibit A. Such reimbursement shall not be distributed from its escrow account to any of the parties until all litigation cases have been dismissed with prejudice on the parties' motion or stipulation and the pending permit amendment request issue before the Garfield County Board of County Commissioners is approved as posted in the public notice of May 13, 1991. In consideration of this agreement for reimbursement, the parties identified or referenced herein agree not to oppose directly or indirectly or unnecessarily delay NCIG's pending permit matters before the CMLRD. 7. Future Coal Loadout. If NCIG proposes to locate and permit a railroad coal loadout for its Coal Ridge mining operation on its property east of the Riverbend Subdivision NCIG will do so subject to the following standards. The parties agree not to oppose such permit(s) before the appropriate land use and permitting agencies or entities if the following mutually agreed upon standards are complied with in the permitting of such a facility: A. The railroad coal loadout would be located east of Riverbend Subdivision and behind the rock outcrop in such a manner as to avoid or minimize any visual or noise impact upon the Riverbend Subdivision or its residents and would be operated with all then applicable environmental and safety laws and permit requirements. B. The coal from the mining operation shall be delivered to the railroad by means of a liquid slurry or mechanized conveyor which would be aligned and constructed entirely underground to avoid or minimize any visual or noise impact upon the Riverbend Subdivision and its residents and would be operated with all then applicable environmental and safety laws and permit requirements. If this conveyor must be accessible from the surface for safety, environmental, or maintenance reasons, then NCIG would commit to providing mitigation measures to avoid or minimize any visual or noise impact. C. The coal loadout's storage and loading facility will utilize design and construction concepts which most minimize the visual impact of the facility. D. The railroad coal loadout facility will be designed and operated to incorporate the most advanced noise suppression equipment and procedures for such facilities and operations that are commercially available. The railroad coal 4 • • loadout facility will be designed and operated in compliance with all then applicable environmental and safety laws and permit requirements. E. NCIG will protect the groundwater wells for domestic use now owned by the Riverbend Water Company at the railroad coal loadout site from any diminution or degradation caused by its operations and facilities. F. NCIG will design, construct, and operate this railroad coal loadout facility so as to minimize the traffic and any resulting impacts upon the Riverbend Subdivision and its residents of employees, contractors and invitees of NCIG. The parties commit their best efforts to identify, assess, negotiate, and where appropriate mitigate the off-site impacts of this railroad coal loadout facility and operation in the spirit of good neighbors who seek the protection of their own quality of life and economic opportunity. It is expressly provided that each party shall have the right to determine for itself whether the above standards are being, or have been adhered to. 8. NCIG, commits that while its property is permitted or operated as a coal mining operation, it will not seek to permit or operate a railroad coal loadout to be located east of New Castle on the north side of the Colorado River in the vicinity of the I-70 exit. 9. It is expressly acknowledged that certain of the commitments herein are in excess or in addition to those currently required in the applicable permits and that the parties will cooperate in every way to have these additional commitments considered and recognized in some appropriate manner by the permitting authority. Nonetheless, NCIG agrees to be legally bound by these commitments. In all other respects, the terms and conditions of the applicable permits as they currently exist shall be in full force and effect on the permitted lands and operations. In addition to its rights under applicable laws and regulations, each party and individual party shall have its own right under this agreement to determine for itself whether the terms of the agreement are being complied with and to pursue legal recourse if not being adhered to. 10. Upon execution of this document of Principles of Agreement, the parties commit to cooperate with each other and their respective legal counsel to effectuate the principles and spirit of this agreement. Specifically, the GCA and related parties agree not to oppose the amendments being requested by NCIG before the Garfield County Commissioners, as posted in the public notice of May 13, 1991, as long as they are consistent with the principles set forth herein. Further, the parties agree not to oppose or unnecessarily delay the processing and approval of the permit revisions pending before the CMLRD and potentially before the CMLRBd. Upon the payment of the estimated $45,000.00 legal fees, costs, and expenses specified above into an escrow account, the parties and their respective counsel will cooperate to have filed as quickly as possible stipulated motions to dismiss with prejudice all pending actions by and involving these parties relative to all legal disputes now existing and claimed between these parties and the respective permitting authorities at which time the funds shall be disbursed pursuant to Exhibit A. 5 • 11. This agreement shall be binding upon the parties, their heirs, and assigns. 12. This agreement shall terminate and all rights and claims arising solely from herein shall be extinguished when NCIG, or its successor(s), cease to operate a coal mining operation and/or railroad coal loadout and complete reclamation through the planting of vegetation on this permitted real property. This document shall be recorded by NCIG and Greg and Jill McKennis in the Garfield County Clerk and Recorders Office on their respective real property owned by them, as described in the attached exhibits, and shall be appurtenant to and run with the real property of NCIG (as described in Exhibit B) and of Greg McKennis and Jill C. McKennis (as described in Exhibit C), and incorporated herein by reference. This agreement's termination and the release of the recording shall be accomplished by NCIG, or its successor, filing a verified affidavit in the Clerk and Recorder's Office stating that its coal mining and/or coal loadout operations have ceased, that its special use permit has expired or has been surrendered and forfeited, and that reclamation of the permitted area has been completed through the planting of vegetation along with a written affirmation as to termination of operations by the Garfield County Planning Department. Copies of this affidavit shall be sent to the signatory parties at their last known address. Executed this day of May, 1991 by: Rushton O. Backer Greg McKennis President 1270 County Road 240 NCIG Financial, Inc. Glenwood Springs, CO 81601 Jill C. McKennis a/k/a Jill C. Williams 1270 County Road 240 Glenwood Springs, CO 81601 The foregoing was subscribed and sworn to before me this day of May, 1991, by Rushton O. Backer. WITNESS MY HAND AND OFFICIAL SEAL. My commission expires: Notary Public 6 • • The foregoing was subscribed and sworn to before me this day of May, 1991, by Greg McKennis. WITNESS MY HAND AND OFFICIAL SEAL. My commission expires: Notary Public The foregoing was subscribed and sworn to before me this day of May, 1991, by Jill C. McKennis. WITNESS MY HAND AND OFFICIAL SEAL. My commission expires: Notary Public 7 • • We, the undersigned, as parties to Civil Action No. 90 CV 306-3, and in some instances as Intervenors in Civil Action No. 90 CV 308-3, do hereby acknowledge receipt of a copy of an agreement entitled "Agreement Between NCIG Financial, Inc. and Greg McKennis and All C. McKennis" dated and executed May 24, 1991. Further we swear the we have read this document and understand its terms and conditions. By our execution of this document, we hereby consent to the dismissal with prejudice of our individual and collective claims in the these above identified cases and our eligibility to submit claims for reimbursement under the terms of Section 6 and 10 of this agreement described herein. Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Randy Corry P.O. Box 314 Silt, CO 81647 Oleta Corry P.O. Box 314 Silt, CO 81652 Gwendolyn Colby 0068 Riverbend Dr. New Castle, CO 81647 John Colby 0068 Riverbend Dr. New Castle, CO 81647 Elizabeth Doll 0050 Riverbend Dr. New Castle, CO 81647 8 Dated: • • Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Gregory A. Doll 0050 Riverbend Dr. New Castle, CO 81647 Dale Edward Knighton 0143 Glen Eagle Circle New Castle, CO 81647 Suzanne Marie Knighton 0143 Glen Eagle Circle New Castle, CO 81647 Jon Robert Krick 0091 Riverbend Dr. New Castle, CO 81647 Leslie Jean Krick 0091 Riverbend Dr. New Castle, CO 81647 Donald McGirr 1652 County Road 240 Glenwood Springs, CO 81601 Patricia McGirr 1652 County Road 240 Glenwood Springs, CO 81601 Dated: • • Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Dated: Witness: Ray D. Tenney 0156 Glen Eagle Circle New Castle, CO 81647 Sharon E. Tenney 0156 Glen Eagle Circle New Castle, CO 81647 Linda M. Schultz M.D. 0492 County Road 240 Glenwood Springs, CO 81601 Greg Tonozzi 0492 County Road 240 Glenwood Springs, CO 81601 Randy Lee VanEngelenberg 0059 Glen Eagle Circle New Castle, CO 81647 Victoria A. VanEngelenberg 0059 Glen Eagle Circle New Castle, CO 81647 Cheryl L. Glover 0161 Glen Eagle Circle New Castle, CO 81647 10 Dated: • • Witness: Dated: Witness: Danny E. Glover 0161 Glen Eagle Circle New Castle, CO 81647 Henry H. Nall 3226 Poinsettia Dr. Colorado Springs, CO 80907 11 • • The Garfield Citizens Alliance, as Plaintiffs in Civil Actions Nos. 90 CV 306-3 and 91 CV 08-1 and as Intervenors in Civil Action No. 90 CV 308-3, do hereby acknowledge receipt of a copy of an agreement entitled "Agreement Between NCIG Financial, Inc. and Greg McKennis and Jill C. McKennis" dated and executed May 24, 1991. We swear that we have read this document and understand its terms and conditions. By our execution of this document, we hereby consent to the dismissal with prejudice of our claims in these above identified cases, our agreement to support NCIG's current permitting efforts before Garfield County and the CMLRD and NCIG's future permitting efforts if consistent with the terms of this agreement, and our eligibility to submit claims for reimbursement under the terms of Section 6 and 10 of this agreement described herein. Dated: Witness: Dated: Witness: Randy Corry Chairman Garfield Citizens Alliance Greg McKennis Vice -Chairman Garfield Citizens Alliance 12 • • Exhibit A Expenses : NCEC 1. Greg McKennis Consultants mining $ 7,224.00 Noise consultants $ 3,485.00 Glenwood Post $ 315.00 Grant, McHendrie P.C. $ 9,379.00 Travel, phone, etc . $ 1,853.00 Carter & Sands P.C. $ 5,136.00 $27,392.00 2. GCA Glenwood Post Consultants mining Carter & Sands P.C. $ 315.00 $ 2,700.00 $ 6.695.00 $ 9,710.00 3. McGirr Landscape expert $ 3.800.00 $ 3,800.00 4. Riverbend Parkes testimony $ 4,100.00 $ 4,100.00 $45,002.00 Prepared and submitted by Greg McKennis on May 23, 1991. • Exhibit B NC/0 PI .)iCIAL0 INC. Section 33, 4o eahih S Sooth, fins?a 9C weeAB of the 6th Principal Meridien: that part of the S.81/4SE1/4 lying Southerly of the centerline of the Colorado Fiver. EoCtlon_34,4Tbwnehi 5`5out1:, R&!.1.11_20 West of the kith Princl a1 p Meridian: b'ei/46111/4: 5E1/4 and that part of the S147./4Sf11/4, flW1/4S111/4, kE1/4614/4, and tt1/01E.1/4 lying Southerly of the centerline of the Colorado River. Section,35t.towethin S South, Ran ya 90 Weet of the 6t11 Princiur.l Meridian: That part of the SW114l1W7J4, H81/4SW3,/4 and the Ni/2561/4 lying southerly of centerline of the Colorado lover, and the W1./254/4. 6pctinn 5, township,6 South, Rinne 90 West of the 6th Principal Meridian: Lot 4 and the 6i/264/4 3F2nio ._fu_.TQae'11111!1.p.-Lfestsallt—NoIlt<-2.Q1Kt t.,,.id the 6th PringISSil—titia.111111 Lb, Lots and 61 and that2pa_-t of iot53/lying46 utherly4of4, /the law water mark ofN/2 SA/4, andtthesA/4 SAM Northerly bank of the Colorado River. !t•ct,ion s,� Townhhip 6 South tenon 90 Wank of the 6th Principal Meridian: n1/2114/4 and the 61/21i1/4. Excepting from the a oove d escxi}„ed property the following parcels of property, dr_ecrjlied in the Rule and order entered in the District Court for Garfield County Jen Civil Action Ho.. 6635,, entitled Doard of County Commissioners, •t al va. Dory; C.een Anderson, et al, recorded Woven:bar 6, 1972, in Book 437 at page 707 as Reception no. 255941, and Civil Action 110. 6657 recorded October 18, 1972 in Renk 437 et Page 1 and Amended robruary 23, 1973 in lao.tok 441 at Page 111, Recep- tiot: $on. 255774 and 257131 respectively. Parcel no. 143 A tract or p.nrcal of land No. 143 of the State Department of Highway, Division of 1119hways, states of Colorado, Project No. x 70-1(12)89 Sar. 7, in the WW1./4 of the SWI/4, end the Nrl/4 of the SW1/4 and the SE1/4 of the Hw3./4 of Sect.lon 34, Town - *hip 5 South, Range 90 Wast of the Sixth Principal Meridian, in Garfield County, Colorado, said tract of parcel being more particularly deScribtd as follows! Dagimaing ata point on the centerline of the Colorado River from which point the Vett 1/4 corner of Sac. 34, TSS, 1190W, 6th P.x. beard ;6.62 5S'W. a distance et 1,494.6 fee 1 thence N.21 10'E., along thce centerline of the Colorado River, a distance of 80,2 'rats thence 1.1.49°47't., along the centerline of the Colorado River, p distance of 556.8 feel: thenen n.61o4S' ., along the centerline of the Colorado, giver, a distance of 617.2 feet: tethaanC1es S.8So78'}., along the centerline of the Co3aredo River, a distance of 266.6 thence $.74°29'30•W, a diseased of 146.6 teat'/ thane* along the arc of A curvy to the left having a vigil= of 2,764.8 fest, a diy• t*nae of 1,000.2 fent. (Lies chord of this arc bears 6.62 07'W., a distance of 394.7 feet)) thence S.49°44'70`W, .i diet/snot! of 294.7 feet, thenas 6.48°45'w. a diitatce of 26.9 feet, more or .lens, to the point of beginning. • Fnrestl. Ivo. 142.2 i tract or ira.roal of land Teo. 143-A of the State Department of fighoeys, Divi ion of Highways, State Of Colorado, Project Mo. 170.1(12)99 Seo. 2, in the tE1/4 of tha 8E1/4 of Soct.1on 34, Towomhip 5 tooth. Range 90 West, of the Sixth principal )acedias, in Cariiald County, Colorado, sold tract, Or parcel. lotting more particularly described ae follows, baginninq at• a point on the, coot.oxline of,thy Ce1e:•rado x.iver from vhich the nt corner of Sac. 34, 759, 1t909t', 6th 1+.I), boars tt.7d42'1;., a dietanca of 2,106.8 Leets thence a.lanq the axe of a curse to the, left baying s gadiva of 4,403,1 feet, a disc tone* of 194.4 foot (thn chord of this tire locks S.84 35'30"W. i 4ietauca of 294.3 teat), try tl,n cantarlinee of thee Colorado Rivers t.hehce N.70 30'E., Along the centerline of the Colorado River, a distetnce of 73.3 feet! thence t.rlf°02')., along the centerline of the Colorado River, a distance of 213,8 feet! thence, S.60°20'L., along the eanteriina of the Colorado )river, a r1istanco of 11.0 feet, taora or 1enn, to the point of beginning. J' i1xS,:4tl _ P 2.L.A.L A A tract er perool of l tad ho. 143-8 of the State Deportment of Highways, Division of tii571tHay,t, State, of Colorado, Project Ido. Y 70-1(12)09, sec. 10 in tho SW/4 of the int/4, in thu, SE/4 of the 1rW/4 and in the, NE/4 of the SW/4 of vection 35, Township 5 south, Range 90 Root of the Sixth Principal M*ridian, in Garfield County, Colorado, **id treat or portal being sora particularly dasori.bod as four+& ) 89ginning at ,t point ,on the c0ntar1i.tto of the Colorado River, from which point the NW comfit' 0f Sec. 35, T58, R9041, 6th P.M. bass (4,27.13' 30"w. a di,vtence of 2,615.7 t'iott thenne H.73•89't., albnp the cant°trline of the C.olorsdo River, e diatancs of 162.8 foot, thence 3.10.43'kt., along the Centerline of the ColorAdO /liver, a dietance of 640.8 foot; thanes S.40•16'R., along the Canterllne of the Colorado River, a diotance of 223.6 fast/ thence 8.33°S2'E „ along tho center line of the iroloredo River, a distance, of 119.8 fotti therm* along the axe of a curve; to the, loft having a radius of 4,4113.7 foot; t distance of 1,090.9 feet, mono or lees, to the point of bTginninq (the chord at this art boars 8.67.23'30'x. R dietanat of 1,070.3 foot). 1'Arte1 No. 341-.0 A tract or Lottcol of Land nes. 143-C of the Stott Deportmoot of 8ightaayet, Division of niglnrw.y>r, &tate of Colorado, project U. 170-1;12)2 Sta. 2, in the r;'E1/4 of tie SW1/4 of Section 3S, Township 5 South, Range 90 West, of the Sixth Principal Meridian, in Garfield Cottoty, Colorado, halal tract: or parcel being more particularly described as fol low -o t eogisning at a point °r, the thread of the Colorado Rives in the N'!..1/4 of that 8x1/4 o1 Gee. 38, T52, RO6i+, (SLh r,8. fsom vhich Dint the S1/4 corner of S. 35 boars 2.21036'30"2. & distance, of 2,796.8 feet; thence, 9.11°47°W. a distance of 104.9 Leet; th'tn.n 9.59001'E, a diotonce of 176.3 feet, to the thread of the Colorado Rivers thanes N.33°52'W., along tiro thread of the CQloXadooRiver, *distance of 232.4 fret, rope �r lento, to the point of l+ettinrti.na. Z 14 OP =CAPTIONS TO PARCEL A. TRC POLLOVilm PAAcl L I1 CONTET15b I T mUrtrQR. Section GL T mahip 6 SuuthL 5!,142 e' 90 Nest of the 6th Prince al Neridient All that: part of Lit 4 of 5eation 6, Township 6 South, Range 90. Nest of. tha Sixth Principal Meridian, lying, Southerly of the centerline brae Colorado River, said pJrca1 of land in dettcr._ibod as follovet Degirtninq at thea Soutltxeot Corner of said Lot 4, thauee fortn along tha Keateray limo of said Lot 4, 211.00 foot to A point in the, otonte.t of said river; thence 8.63 45'00"E. 466.00 foot along the corner of raid river; thence 8.56°35'00"t. 345.00 feet along the cantor of skid river; thanco 8.50°35'00"L. 690.00 feet along the cuter of said river; thanes 8.53 111'00"r, 147,1.6 feet along the center of sold river to a point on the t.++atarly lioo of said Lot 4; thnnr_a South along the Eatsterly line of veld Lot 4, 1255,68 tenet to the, Southneut Cotoor of skid Lot 4; thenen 8.89"49°44"w. 1135,55 toot along the oouthuriy lista of maid Lot 4, to Oho touthweot corner of said Lot 4, the point of beginning, i e 'trxft PROM PATtCM J1 J,tk)VI". t i'UAT PORT108 CONVO1'L"b tli Rh$I2.7txt h. btMICAH, J. AS T'RUSTEE, DF`..SCAT15rn IN wooD R£'CJSOLD 1M EO()K 459 AT PAGE 174 es 1tEt'EPT2OU NO. 262991. (c0N'rINUED) • • rA)cm A NOTA, THE LEGAL DESCRIPTION IN BOOR 459 AT PACE 174 EXCEPT D PROM PAAC1y A 25 THE SAKE A5 TEE LAND BEING CONVEYED rN PARCEL B BELOW. A parcel of lend iitueted in the tE1/4, the £1/25141/4 and the sw1/4sw1/4 of Section ad, Toweehip 5 South, A nge 00 Weet of the Sixth Prinoipal meridian, also in the R1/2N1~A/4 of section 6 and in Lot 4 of Scctior* 5, all in Township 6 south, Range 00 West of rho sixth Principal Haridiae, said parcel of land ii deecribad as follows: Begivinq At a point whence the Southeast Corner of said Section 34 bears: 5.88 50'269£. 1797.11 fret; thence 5.64°20'00"W. 152.55 feet, the.:*ce 32.40 feet along the are of a curve to the right, having a radius of 21.86 feet, the chord of which heart: N.73°12'30"1t• 29.51 feet; thence N.30°45'00"W. 202.55 Leet; thence 213.32 feet along the ere of v tuxva to the left, having a radius of 239.65 feat, the chord of which bearer N.5615'00"W. 206,34 feet; thence N.81 45'00"U. 183.00 feet; thence 111,25 feet alohg the ere of a curve to tht left, having a radius of 262.76 tett, the chord of which beers* 5.75°00'00"W• 207.45 feet: thence 5.51°45'00"W. 485.00 feet; thence 176.95 feet along the axe of a curve to the right, having a radius of 304.91 lett, the chord. of which bears 5.68°22130" W. 174.47 feet; thence 5.8500o'00"H. 45.00 fest; thence 201.11'feet along the arc of a curve to the left, havibq a radius of 467.50 feat, the chord of vhieh bea;s; 5.72°07'30"W. 208.34 fest: thence 5.59°15'00"w 325.0.fee_t; t ence183.1.4 feet along the are of a curve to the right, having a radiu.S of 407:30 feet, the chord of whiuh bears: 5.72°07'30"W. 181.60 feet; thence 5.85°00'00''4, 45.00 feet; thence 211.23•feot along the arc oof a curve to the left, having a radies of 396.80 fent, the chord of whicli ),eases 5.69 45'00"W, 208.74 feet; thence 5.54°30100';4 20.3 feet 13 ; thence 31.42 feet along the ass of a curve to the right, having a radius of the chord of which bearer N.8o'3o'00"W. 28,28 feet; thence N.35 30'00"W. 817.85 feat; t!*ence31.51 feet along the arc ofaa curve to the right, having a radius of 20.06 feet, the chord of which bears: N.09 29'58'£. 28.37 stet: thence 250.70 feat along the arc of 8 cnrroe to the left, having a radius o! 12,930.95 feet, the chord of which hearer N.53 43'20"F. 250.70 feet, thence N.53°10'00"E. 2,918.20 feet. thence 31.54 feet along the arc of a curve to the right, having a radius of 20.23 feet, the chord of which :,ears; 5.82°09'58"1. 28.44 tact; thence 5.37°30'00"E. 176.34 feet along the arc of a curve to the left, having a radius of 211.06 feet, the chord of which hearer 6,57°45'00"E. 215.33 feet: thence. 5.78°00'00"£. 408.00 feet; thence 68.50 feet along the arc of a curve to the left, having a radius of 346.00 feet, the chord •,f Which bears* L83°40'18'1. 68.39 feet; thence 37.66 feet along the arc of a curve to the right betting a radio. of 26.51 feet, the chord of. which bears: 5.50°31'57'x. 34.58 feet; thence S.09°50'00"£. 704.79 feet; thence 135.31 feet along the ars of a curve to the right, haw Og a radius of 211.43, the chord of which bears: 5.08 30.00"W. 133.01 fent: thence 5.26 50'00"W. 20.00 feet, thanes 151.55 feet along the arc of a curve to the'right, havieg a radius of 598.85 feet, the chord of which tears; 8.34°05'00"W. 151.15 teat; thence 5.41°20'00"W, 70.00 feet; thence 202.80 feet along the arc of a curve to the left, having a radius of 2050.55 feet, the chord of which beer�'t 5.38°10'00"W. 202.72 feet; thence $.35°40'00"W. 25.00 feet; thence 288.33 feet along the arc of a curve to the left, having a radius of 606.94 feet, the chord of whioh bears: 5.25°50100"W. 207.31 fent: thence 5.16°00'00"W. 170.00 feet; thence 167.69 feet along the ,pre g*f a intoe to the tight, having t' radius of 192.116 feet, the chord of which bourn: 5.40 10'r*0"W. 157.91 tent, to the point of beginning. XftEPP174d rPSkS PA1tCEI,S A AND ! That portion of subject property Parcels A And 8 platted at Rivtrbend Subdiviniob riling 11, Riverbend•Subdlvision Filing 12 Amended, and Riverbend Ranthettes rival Plat, ar,d tiled thereof with the Garfield County Clerk end Recorder; and also except - Leg the conveyance to the Board of County Cotraaiseioners of Garfield County recorded August 31, 1979 in Book 534 at Page 416; also excepting the property and easement conveyance to Cunningban construction 4 Development Co. recorded May 20, 1980 In nook 1.49 at Paga 172; alto excepting the conveyance to The Colorado Midland Railway Copeey recorded November 1, 1886 in Book 8 at Page 184 (affects Lot 4, Sac. 6, t63, 19010; and also excepting the conveyeece to Cunningham Conetru,tion a Development co. recorded July 10, 1981 in Book 576 at Page 534, as described therein each in5tty- nent en*m,er:ated .bova. TOTAL P.03• • • Exhibit C Real Property of Jill C. McKennis a/k/a Jill C. Williams All the real property and rights described in the document recorded in Book 491, Page 791 of the Garfield County Clerk and Recorder's Office, except those portions previously conveyed prior to the date of this agreement (May 24, 1991). This property is also described in the Garfield County Assessor's Office in Parcels Nos. 013208, 013201 and 030072. Prepared and submitted by Greg McKennis on May 23, 1991. 9Ai • •STATE OF COLORADO MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 May 15, 1991 W.( MAY 221991 � �k GP* it1-GUUKCIV MAY 2 0 COUNT' cf,, Garfield County Board of Commissioners 109 8th Street - Suite 200 Glenwood Springs, CO 81602 Re: Coal Ridge No. 1 Mine (C-84-065), Permit Renewal Dear Board of Commissioners: Roy Romer, Governor Fred R. Banta, Division Director Please be advised that the notification letter from the Colorado Mined Land Reclamation Division to your office. dated April 16, 1991 concerning the permit renewal for Coal Ridge No. 1, included errors in the accompanying legal description of the permit area. The correct legal description is as follows; T6S, R91W, Section 1: Those lands in the NE/4 yet south of County Road 335, lots 3 and 4, S/2, S/2 NW/4. T6S, R9OW, Section 6: All lands south of County Road 335. T6S, R9OW, Section 5: All lands in S/2 SW/4. T6S, R9OW, Section 8: All lands in N/2, N/2 SE/4, and NE/4 SW/4. T6S, R9OW, Section 9: All lands in S/2 NW/4, and SW/4. T6S, R9OW, Section 15: All lands in NW/4, T6S, R9OW, Section 7: All lands in NE/4 and N/2 NW/4. T6S, R91W, Section 12: All lands in N/2 NE/4. T6S, R9OW, Section 16: All lands in N/2 NE/4, NE/4 NW/4 being 2,525 acres more or less. • • Coal Ridge No. 1, Permit Renewal -2- May 15. 1991 The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain. A copy of the application is available for public inspection at the Garfield County Courthouse. 109 8th Street. Suite 200, Glenwood Springs. Colorado. Written comments, objections or requests for an informal conference on the application may be submitted to, and additional information obtained from Mined Land Reclamation Division, Room 215. 1313 Sherman Street. Denver, Colorado 80203, (303) 866-3567. Written comments, objections or requests for an informal conference must be filed at the Division by 5:00 p.m., within thirty days after the last public notice in the local newspaper. Sincerely. William B. Crick Reclamation Specialist WBC/ern CC: Jim Stevens, MLRD 5548F kr) MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX 303 832-8106 • STATE OF COLORADO rd) Fid[95?5-7), MAY 2 2 1991 May 16, 1991 UL` Ca th1 .tu ti,c)0+v1Y Garfield County Commissioners 109 8th Street, Suite 200 Glenwood Springs, CO 81602 Dear County Commissioners: 2 P MY 1;11 Roy Romer, Governor Fred R. Banta, Division Director Pursuant to Title 34, Article 35, Paragraph 3, of the Colorado Revised Statutes, the Mined Land Reclamation Division hereby issues notice that on May 16, 1991, a technical revision application for a permit to conduct coal mining operations, File No. C-84-065 (TR - 07), by New Castle Energy Corporation, 7476 E. Arkansas Avenue - #104, Denver, CO 80237, was deemed complete for the purposes of filing. All reviews and comment periods as provided in the Act and Regulations promulgated thereunder initiate from this day of filing. The applicant proposes to revise underground coal mining operations in Section 6, Township 6 South, Range 90 West. The revision proposes to add a small strip of land, located between County Road 335 and the Colorado River, to the permit area. The revision also incorporates a pre-existing water supply pipeline into the permit area. The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain. A copy of the technical revision application is available for public inspection at the Garfield County Courthouse, 109 8th Street, Suite 200, Glenwood Springs, CO. Written comments may be submitted and additional information may be obtained from the Mined Land Reclamation Division, Room 215, 1313 Sherman Street, Denver, Colorado 80203, (303) 866-3567. Sincerely, William B. Crick Reclamation Specialist 1986G • • STATE OF COLORADO MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 May 15, 1991 ° -7.2P-ritg. MAY 201991 Gritir SLLu Luui'. TY Mr. Mark Bean Garfield County Planner Garfield County Courthouse Glenwood Springs, Colorado 81601 RE: New Castle Energy Corporation Technical Revision #6, Permit Revision #2 (File C-84-065) Dear Mr, Bean: Roy Romer, Governor Fred R. Banta, Division Director On December 21, 1990 New Castle Energy Corporation filed a Technical Revision to the approved permit. This revision proposed to incorporate a water supply pipeline into the permit area. The pipeline crossed through a culvert under a county road. As the pipeline crossed under the county road, it intersected the road right -of --way: On February 26, 1991 New Castle Energy Corporation filed a Permit Revision to the approved permit. This revision proposed to incorporate a loadout facility into the permit area. The boundary of the loadout area may come to within 100 feet of a county road right -of --way. Therefore, pursuant to Rule 2.07.6(2)(d)(iv)(b), the Division published notice of a proposed public hearing to be held in the vicinity of the operation. The purpose of the hearing was to obtain information from the public pertaining to potential impacts to the public and affected landowners given that the revised permit areas, as proposed, would come to within 100 feet of each road right -of --way. On April 18, 1991 the Division held the hearing as provided for in Rule 2.07.6(2)(d)(iv)(C). Public input was solicited from and provided by the public. Rule 2.07,6(2)(d)(iv)(D) requires that the Division make a written finding based upon information received at the public hearing. The finding must specify whether or not the interests of the public and affected landowners will be protected. No information was submitted at the public hearing which demonstrated that the interests of the public or of affected landowners would be adversely affected. Therefore, the Division makes the finding that the interests of the public and affected landowners will be protected. This finding is consistent with the Division's analyses of the revision proposals, conducted independently of the public hearing. • New Castle Energy 2 May 15, 1991 Please contact me if you have questions or comments. Sincerely, Steven G. Renner Coal Program Supervisor SGR/yj b cc: Fred Banta Jim Stevens David Berry 5594F May 14, 1991 COM v c.('';; Arnold Mackley, Chairman Marion Smith Buckey Arbaney GARFIELD COUNTY COMMISSIONERS 109 8th Street Glenwood Springs, Colorado 81601 Dear Commissioners: It is in extreme frustration that I am writing to you today about New Castle Energy Corporation (NCEC) now known as New Castle Investment Group's (NCIG) application for a special use permit to mine coal east of New Castle. I have attended nearly all public hearings both County and State and have done research on my own to find out what kind of impact this proposed mine would have on my life, both personal and business. At the past two commissioners meetings to consider issuing NCIG's permit, NCIG made statements that do not reflect the actual situation. They led you to believe that they did not know a public hearing would be required for their proposed Lacy loadout permit before it would be issued by MLRD. They neglected to tell you why this is required. They changed the proposed loadout in the MLRD permit application after the public hearing required for their permit. Are they saying they did not think the public should be allowed to have input regarding any material changes made to their application? They led you to believe that this put them in a situation not anticipated by you when you issued your resolution requiring all permits to be in place by April 15, 1991 and therefore should be taken into consideration by you. It is perfectly clear to me that NCEC/NCIG is in the position they are in only because they have caused themselves to be in that position. Your resolution was based on information presented to you by NCEC/NCIG and Garfield County residents. Your resolution is for the protection of the citizens of this county. Asking you to change your resolution in any way, including extending deadlines is not in the best interest of the citizens. Mr. Sturges repeatedly stated that they (NCIG) have taken this permitting process seriously, they have spent a lot of money and that this is not a game. Are those reasons to give NCIG their permit? In my opinion they are playing games, and it is with my life. I am sure there is not one single person involved in this process that is 100% happy with your resolution, including yourselves. That is called COMPROMISE. I am not here asking you to change your resolution, I am trying to live with it and make adjustments • . to my life as necessary. NCIG should not be asking you to change your resolution. A brief history of SKM (Storm King Mines), NCEC and NCIG would show that this is the manner in which they operate, constantly trying to change what has been given them to suit their needs without regards to other effected parties. A good example is their permit application - it was changed almost on a daily basis, including changing the controversial Riverbend loadout. I personally feel these changes were done only to get their permit approved with the intention of getting the changed items later. Mr. Sturges continually brought up their district court appeal of the time frames in the resolution. Although the judge denied the appeal, Mr. Sturges continued to try to use it as if it was valid. Mr. Sturges asked you to use discretion in enforcing your resolution. The resolution speaks for itself very clearly, any "discretion" would be a change and that is not in the public's best interest. Although he used the word discretion, he was asking for a change. How much abuse do we as citizens have to take from NCIG? It is amazing to me that Mr. Sturges and NCIG would ask you to do something as illegal as change your resolution. Mr. Sturges mentioned potential jobs to this county. We cannot depend on any promises made by NCIG based on their past performance. To bend over backwards for this organization would not be in the best interests of the citizens of this county. They should be made to follow the rules just like anybody else if not more so because of their past performance. Mr. Sturges used the word "bizarre" regarding the County's enforcement of this resolution. I find it bizarre that he would ask our elected officials to do an illegal act by changing their resolution. Mr. Sturges stated that "tolling" was an accepted government policy. I would like to remind him that the judge denied his appeal on this item. Mr. Sturges informed you that the MLRD Board overturned a staff recomendation on a technical revision, and that that was unprecedented it was minor and of no significance. Why does he think it is not OK for MLRD to set a precendence and in the same breath ask you to set a precedence by changing your resolution. Mr. Sturges brought several letters and cases to your attention trying to persuade you that the time frames you used in your resolution are oppresive. The resolution was put together using NCIG's application and other information • • presented to them. It was an informed decision, I am sure that if you wanted a time frame of 3 years versus the 180 days you gave them you would have done so at the time of your decision. I sincerely hope that you will stand by your resolution. A lot of time and effort was put into the application and public hearings by, both the applicant and the public before you carefully made your decision. The resolution is to protect the publics interest, any change would not be in the public's best interests. Sincerely, ClAtj Diane R. Boat 0064 Pinon Run New Castle, Colorado 81647 P.O. BOX 101 Glenwood Springs, Coloiado 81602-0101 May 10, 1991 • DAVID R. STURGES IP ATTORNEY AT LAW Garfield County Board of County Commissioners Garfield County Courthouse 109 8th Street Glenwood Springs, Colorado 81601 Dear Commissioners: Telephone (303) 945-5748 RE: Resolution No. 90-083 NCIG Financial, Inc. Following your public meeting on April 29th, 1991, it appeared that our letter of April 12, 1991, needed some clarification as to our requested changes, particularly as to Condition No. 2.0. Please accept this letter as our clarification of the changes we are requesting in Resolution No. 90-083. Based on your action on April 29th, 1991, it is apparent that our requested language change for Condition No. 2.0. requires some further consideration. Because of the past delays in getting some of these permits, due to substantial efforts to block or appeal the issuance of such permits, we believe that the 180 day "compliance period" should be replaced by a three year compliance period from the time of the resolution's approval. In order to facilitate the review of our request we have retyped the conditions of approval from Resolution 90-083 indicating additions in bold type and deletions by strikeout. It is understood that the Board may wish to modify the proposed language and we look forward to discussing this with the Board. The request as proposed now reads as follows: 2 G. Landscaping shall be sufficient to mitigate the impact produced by site disturbance and the construction of mine facilities. All landscaping shall be adaptable to soil and climatic conditions, able to withstand disease and pests common to this area. Trees shall have an average caliper of two and one-half inches (2 1/2") measured one foot (1') from ground level. No tree shall be less than two inches (2") in caliper. No conifer shall be less than six ft. (6') in height. All planted areas shall have a working irrigation system that has Page 1 of 3 sufficient quantities of water available to maintain the plant materials. Any tree that dies shall be replaced as soon as practical depending on the season of the year, but in any case within six (6) months, by a tree of the same size and type. Further, that no later than May 1, 1991, the applicant shall initiate the planting of trees July 31, 1991. The applicant shall initiate the planting of trees along the eastern and northern periphery of the site as the first phase of the landscaping. All such "first phase" plantings shall be completed within six (6) months of commencement of any on-site construction activities. Remaining landscaping specified in the landscaping plan submitted with the application shall be completed within six (6) months of completion of on-site construction activities. Pursuant to Resolution No. 84-261, the Board reserves the right to require an increase in the number of trees by a factor of 200%, the type and size of trees planted, if it is deemed by the Board that the landscaping planted is inadequate to mitigate the impact of the mining operation. Prior to the issuance of any special use permit, the Board will require security to guarantee the completion and maintenance of all landscaping in the amount of Twenty - Five Thousand Dollars ($25,000) for the life of the permit. 2. H. The applicant shall rebuild County Road 335 by the addition of a minimum of two (2) inches of 3/4" base material and four (4) inches of asphaltic pavement from the entrance of the mine to intersection with the I-70 Interchange. The road improvements shall result in a 24 ft. (24') wide driving surface, with a 6 ft. (6') wide, two inch (2") thick asphaltic surfaced shoulders with ditches 3 ft (3') wide and 1 ft. deep; and a 150 ft. long and 10 ft. wide (150' X 10') paved deceleration lane at the entrance to the mine site. The asphaltic surface from the mine site entrance to the intersection of County Road 335 and I-70 Interchange shall be striped in a manner to delineate driving lanes and shoulders. The remainder of County Road 335 will be chip and sealed to the first intersection within the Riverbend Subdivision. The road construction shall comply with the additional recommendations of the Road and Bridge Supervisor as noted in his recommendations to the Board and the guard rail recommended in the Traffic Impact Analysis labeled Exhibit C-2 at the public hearing. All on-site roads to and including the parking lot, the coal truck loading facility and administration/processing facilities shall be paved within one (1) year of the commencement of on-site construction activities. All other internal roads and lay down areas shall be treated with a dust retardant on an as needed basis to be determined by the Board. Page 2 of 3 That The applicant be -required -to shall complete all off-site road improvements by June • , prior to commencement of mining activities with the exception of that portion of County Road 335 between the entrance to the mine site and Riverbend Subdivision which shall be chip and sealed, as specified above, prior to commencement of on-site construction activities. Prior to issuance of any special use permits, the applicant shall provide Garfield County with security in the amount of Five Hundred Thousand Dollars ($500,000.00) to guarantee the completion of the off-site road improvements. Such security shall be in a form acceptable to the Board of County Commissioners and may include a bond, letter of credit or cash. Additionally, based upon the representations of the applicant at the public hearing, Garfield County, at its election, may require that such security be received from financially secure third parties unrelated to this applicant. 2. 0. The applicant shall have 180 dam three (3) years from the approval of this resolution to comply with all conditions of approval for initiating mine activity. Further, the applicant shall have 120 days from the issuance of any special use permit to initiate • ' = ' = - - The applicant shall initiate construction activities or establish a land use authorized by Resolution No. 90-083 and the issuance of a special use permit within 120 days of issuance of the special use permit for the specific land use. The County, at its sole discretion, may issue separate special use permits for each land use or may elect to issue a single special use permit for all of the uses authorized by Resolution No. 90-083. .. • • . If you have any questions or require additional information, do not hesitate to call me. Sincerely yours, CVL David R. Sturge Page 3 of 3 TO: FROM: DON K. DEFORD, COUNTY ATTORNEY RE: NCIG PERMIT REQUEST - EXTENSIONS OF 'TIME DATE: May 2, 1991 • • MEMO MARK BEAN, DIRECTOR OF REGULATORY OFFICES MAY 2 1991 Jtjj Ciew; iLLiL LLIUI TY In order to provide direction for future County actions, I feel it is important to reduce to writing the opinion rendered on the 29th day of April, 1991 concerning the ability of the Board to extend a time limit established by Resolution No. 90-93. Prior to consideration of the NCIG request, the practice of the Board of County Commissioners has been to deny all requests for extensions of Board established time limits unless such extensions could be accomplished within the original time period. I believe this policy has been followed pursuant to both your recommendations and my own. Within the matters presented by NCIG, the question has arisen as to whether or not this practice is one to which the Board of County Commissioners is bound. As set forth below, after extensive consideration of that request, I believe that there are instances in which the Board is bound to deny requests for extensions and others in which they have discretion to apply or not apply their previous practice. In regard to the foregoing, it was my position that where the Board has established a time certain during which a land use activity will be permitted and such time frame is self-executing, such time frame may not be extended after its expiration. Specifically, this would apply to permits, plats, and other activities permitted for a specific period of time after which, by the terms of the permit, such activities are no longer permitted without further approval of the Board. Permission for those activities expires on the last date of permission and, therefore, cannot be renewed after that date, as there is simply nothing to renew. In distinction to those types of permitted activities are time frames for compliance established by resolution. In those instances, so long as the resolution itself remains valid and unrepealed, there is no activity whose lawful undertaking expires on a date certain. Additionally, unless the time frames are self- executing and stated to be jurisdictional, they may be amended so long as the resolution remains in effect. However, it is still my recommendation that those time frames be adhered to rigidly in order that we not become involved with situations where an extreme amount of time is allowed to pass before renewal is requested. It is my recommendation that all time frames be treated equally, although the Board is allowed to make exceptions in the latter cases. • • It is the latter case that was involved in Resolution No. 90-83. In that instance, the resolution remained valid and was unrepeaied. The time frame set forth in the resolution was not by its terms self-executing, and therefore a bar to issuance of a permit after the 180 day time period. No permit had been issued under that resolution, and, therefore, no permitted land use was made unlawful after that time period. It was, therefore, my opinion that if the Board found grounds for an exception to their general practice in this case, they were legally permitted to amend the existing resolution. In the above -noted case, the Board found that existing litigation, as well as alterations accomplished by Mine Land Reclamation Division in the applications submitted to that division substantially altered the nature of the application which they were consideration as of October, 1990. Therefore, they felt it would be appropriate to consider amendments to the resolution that would alter the various time frames set forth in Resolution No. 90-83. They specifically did not grant a request for extension of time, but merely granted a request to consider such alterations. I believe the foregoing summarizes the position I stated to the Board of County Commissioners at the public meeting wherein they considered issuance of a permit to NCIG. DKD:mis / SCH R GORDON MEYER INC April 25, 1991 Mr. Rushton 0. Backer NCIG Financial, Inc. 7476 East Arkansas Avenue, Unit 4 Denver, CO 80231 • /tt,)aut%. N t�P1 �i��i CONSULTING ENGINEERS & SURVEYORS/ 1001 Grand Avenue, Suite 2-E Glenwood Springs, Colorado 81601 (303) 945-1004 (303) 925-6727 Fax (303) 945-5948 RE: Construction Schedule for County Road 335 Dear Mr. Backer: Please find enclosed a proposed construction schedule for County Road 335. The enclosed schedule indicates a 20 -week schedule from beginning of engineering to final acceptance by the County. To date, approximately 65% of the final engineering drawings are complete. It will take us approximately three weeks to finalize drawings ready for construction level drawings. We have riot allowed for any bad weather days. In addition, several of the items on the schedule are a function of third party time, including county review, right-of-way acquisition and utility relocation which may require additional time. Therefore, I would suggest a 24 - week or six month schedule is appropriate for this project. If we can provide any additional information, please contact us. Sincerely, SCHMUESER GORDON MEYER, INC. Louis Meyer, P.E. LM:Ic/90158 Enclosure • —+—+—+-4—+-4-4-4— t—+—+—+—+—+—+—+—+—+—+—+ Z +—+ N O Co V P u1 t 0 'O Co V a W A W N -• o -4 m x 33NV1d333V 1VNIHI c r N -1 N (INV NO11V1I93A3H1 — +—+— r N V L7 Sf10NIWf1118 lOH j v m m m C 70a_ ✓ CO m v m .Q diad 30VH9811S n 730 A 0 z n m S33NVN I 1MlddV m O a C 0, — + — 4 —m + — c)) z m < z m z D CO o -4 o z en m cn --I 0 CO A C G n -y 0 NOW/3013H Alllllfli NOIlISIf1b3V N011l — +— +— n n z Z 0) m 70 < -. < m z C c) m 0 m +— +— -- + — — +— +— +— +— r X r X X r , X r , N, X — +— +— +— +— +— +— t— +— +— +— +— +— .!'--.1—.1'71.7.< +— +— + X +— +— + r r , , X X ' ' , X r , W , , X X X , — +—+—+—+—t—t—+—t--t—+—t—t—t.-.1“-.1.7 —t-4 X} X t X} X+ -4-f-+ ,Xr X, Xr Xr ., , X' X r X, X a, , IX ' X i X , , , : v) r xrxx' io , X, X r X r ' U' X X ' X ' ' - 4- 4- 4-+- +-+-+-+-+- 4-- 4-4- 4-- t- 4.* +- 4-+-+-+-+-+ I X, , X ' r . r , V , — +— +— 4— +— +— +— +— +— +— +— +— 4 —. 4 -- 4 --.• + — 4 — 4— +— +— +— +— + , 'X'X; CO — +— +— 4— +— 4— +— +— +— 4— +— +— +— +— t— +— +— +— +— 4— +— 4— + IX , , , , , r , X NO , X +— +— +— 4— +— +— +— +— 4— +— +— +— +— +— +— +— 4— +— + C r , r X r r ..-• , X o m Xx — 4 — +— ,<, X r , , r r r r , 1 N, X X — +— +-- +— +— +— +— +— 4— +— +— 4— +— +— 4— +— +— +— +— +— +— +— + , X , W , .X X , r , , , , , , — +— +— +— 4— +— +— +— +— +— +— +— +— +— 4— 4— +— +— 4— +— +— +-- + I X r 1 -7 rX r , , r r r X , , r , r , i r — +— 4— 4— +— +— 4— 4— t— 4— +— 4— 4— +— t— +— +— +— +— 4— 4— 4— + 1 r r ;- I r i , r r , X, X r i r r X, X r I X' X r r -+-+-4-4-+-+-+-4—+-4—+—+-4-- 4—+-4-4—t-4—+—+—+ 1 X , OS , X 1 4+--4-+--4JC+-4—+—+--+—+—+--4—+—+—+--4--t--+-4--+—+ I X 1 r i V i X I , r r , r X CO X ' X , X ' X X X X X X — +-- +— +-4-4—+— 4—+—+—+—+-- t—+—+—+—+— t—+—+-4— +- X - +— + — + — 4 — + 'O 4- 4-- f-+-+- f-+-+-+-+-+- t- t I (NJ + O , ovn C o z 111 r- V) .'O m -4 n 73 C n G) -1 0 rz m n n = go Z C -4 r- -< -< 0 O W tr n 0 N 1 C n 0 • • REVIEW OF RESOLUTION NO. 90-083 GARFIELD COUNTY, COLORADO Prepared for: NCIG April 29, 1991 • • INTRODUCTION The purpose of this report is to review Garfield County Resolution No. 90-083 and compare the conditions of the resolution to past practices of the County. Resolution 90-083 contains ambiguous language and is internally inconsistent. The question of inconsistency will be addressed in the course of the report utilizing tests of past practices and the logical patterns of development of industrial operations in Garfield County. In other words, lacking specific statements from the Board of County Commissioners, an attempt will be made to discern if a fundamental policy shift has occurred that has altered the traditional permitting approach of the County. The report is divided into five major sections. The first four sections: Preamble; Findings; Conditions of Approval; and Permits From Other Agencies; parallel the structure of Resolution 90-083. The final section is a Summary of the report. RESOLUTION PREAMBLE The first two paragraphs set the stage for subsequent sections of the Resolution. The paragraphs read as follows (emphasis added). "WHEREAS, an application has been submitted by New Castle Energy Company for special use permits for the purpose of constructing and operating a coal mine and associated facilities and a coal loadout facility in substantial compliance with the Garfield County Zoning Resolution of 1978, as amended, and under authority granted under Section 30-28-101, et seq., C.R.S. 1973, as amended on property fully described in ATTACHMENT A to this Resolution; and WHEREAS, the Board of County Commissioners conducted a public hearing as required by the Zoning Resolution of 1978, as amended, on September 17, 1990 and continued said public hearing to October 1, 1990, in the Garfield County Courthouse, Commissioner's Meeting Room, regarding the question of whether special use permit applications should be granted, and, if granted, whether any conditions should be imposed on such special use permits, and, during the public hearing received extensive testimony and other evidence from the applicant and interested parties." This section of the Resolution clearly anticipated the possibility of the issuance of multiple permits for the project. The first paragraph identifies at least two specific land uses (the coal mine and related facilities and a coal loadout) that might be issued separate permits. This distinction is reinforced by the separate neighborhood definitions for the principal land uses which will be further noted below. 1 • • It is logical for the Board of County Commissioners to anticipate the issuance of multiple permits for the project since such phased permitting is typical of mine development which is usually phased and also because the County often issues separate permits for such industrial land uses. Past resolutions of the County were reviewed to determine if the concept of multiple permits has been a County practice for extractive operations. County resolutions and permitting actions support the conclusion that the County typically has authorized the issuance of numerous permits for industrial operations although the mechanical details have evolved over time. For example, the Colony Project and the Union Oil Parachute Creek Shale Oil Program (the 10,000 barrel per day operation often referred to as Phase I) were issued numerous special and conditional use permits. Resolution 78-130, which addressed the application of Union Oil Company, was used as the basis for the issuance of several conditional and special use permits for the construction of the Unocal oil shale project. Resolution 85-01 addressed the application Of Union Oil Company for Phase II of the Parachute Creek Shale Oil Program. Resolution 85-01 authorized the issuance of twelve separate special and conditional use permits encompassing literally hundreds of land uses which were itemized in the resolution. It is significant to note that the actual Phase II extractive operations and associated facilities were covered under a single conditional use permit and transport (e.g. roads, pipelines) were included in other permits authorized by the resolution. The concept is basically the same as that of Resolution 90-083 which indicated that permits may be issued for "a coal mine and associated facilities and a coal loadout facility". Another instance of multiple permits for multiple land uses is Resolution 90-032 A RESOLUTION CONCERNING THE REISSUANCE OF SPECIAL USE PERMITS FOR ALBERT FREI AND SONS, INC., in which the Board authorized issuance of permits for an asphalt batch plant, a concrete batch plant, a casting plant and a casting storage area. The Board had previously issued separate resolutions and permits for the Frei uses. The reason for the separate resolutions is not clear although the concept of multiple permits for what is essentially a unified operation does allow an applicant to permit only those uses that are needed at a given time and also allows the County to phase the development approvals. RESOLUTION FINDINGS The Findings in the resolution also support the concept of multiple project permits. Finding G. specifically refers to multiple permits. Finding G reads as follows (emphasis added). "That the Board must, for the purpose of analyzing the subject application, in accordance with the applicable provisions of the Garfield County Zoning Resolution of 1978, specifically Sections 5.03 and 5.03.11, establish the neighborhood which may be affected by the possible granting of the proposed 2 • • special use permits and, further, the Board has determined that, except as otherwise noted herein, the affected neighborhood is that area of Garfield County, Colorado, consisting of properties within one (1) mile of the proposed coal mine site of the applicant, and one-half (1/2) mile of the proposed coal loadout facility." The Board made the distinction between the mine and the loadout. The next finding, H., refers to the special use permit in contrast to the preceding finding and the preamble of the resolution. RESOLUTION CONDITIONS OF APPROVAL Resolution 90-083 contains seventeen conditions of approval. Unfortunately, the conditions of approval are not consistent in terms of reference to single or multiple permits authorized by the resolution. Condition B refers to both "The permit" and "all land use permits" as well as "a new special permit application" (in the event that mining activity ceases for more than one year). Condition C refers to "The only loadout approved by this application...". It is presumed that the correct wording should indicate "approved by this resolution". It appears that such scrivener's errors may have occurred in other parts of the resolution. Condition G, which deals with the landscaping requirements, states that 'Prior to the issuance of any special use permit, the Board will require security...". If the Board had envisioned the issuance of a single permit it is most likely that the phrase would have been " Prior to issuance of the special use permit,...". Condition H, addressing road impacts, and Condition J, regarding other state and federal permits, also include the same reference to issuance of "any special use permits". The distinction between "any special use permits" and "the special use permit" is significant since the preamble clearly anticipated the issuance of multiple permits. It is only in Condition B that the concept of a single land use permit is introduced. Other findings and conditions refer to multiple permits either explicitly or implicitly. PERMITS FROM OTHER AGENCIES The preponderance of references from Resolution 90-083 cited above indicate that the Board anticipated that the applicant may request the issuance of more than one special use permit for the land uses authorized by Resolution 90-083. In fact, the applicant has requested that the Board of County Commissioners issue a permit only for a coal mine and associated facilities. The applicant has not requested the issuance of a special use permit for the Lacy loadout and will only do so when the applicant has determined that the Lacy loadout is necessary 3 • • for the mining operation and when any permits required from other agencies are acquired for the Lacy loadout. Once again, this request is not inconsistent with the terms of Resolution 90-083 or previous county practices. Much discussion has centered around condition J of Resolution 90-083 which reads: "That copies of all other permits from other governmental agencies required for the proposed special uses be submitted to the Planning Department prior to issuance of any county special use permits. Further that the applicant shall comply with all State and Federal regulations." The most restrictive interpretation of condition J is that all permits from other governmental agencies must be issued for potential land uses identified in the application whether or not the land use is desired by the applicant. Such an interpretation is illogical for the simple reason that an applicant would not request permits for land uses that are considered by the applicant to be either unnecessary or perhaps not required at a specific time. Merely because an application lists potential land uses which are subsequently authorized by the Board, it does not follow that a permit will be requested for every land use particularly if development plans are changed in the normal course of project development. That is the reason why multiple permits are authorized for a project. The applicant is in the best position to determine which land uses are essential to the successful development and operation of a project. A loadout is not necessarily essential to the operation of a coal mine. The notion that the requirement of all permits for all facets of the operation as insurance that the Lacy loadout will not be relocated is a specious argument. Resolution 90-083 specifically authorizes only one loadout, the location of which is defined in the Resolution. The County has total control over the establishment of the loadout as a land use with or without other agency approvals. Prior to requesting the Lacy loadout (if desired), the applicant must acquire all permits from other agencies that may be required for the loadout. It must be understood, however, that the applicant may or may not ever request a special use permit for the Lacy loadout. In any event, the applicant must establish a land use within 120 days of issuance of the special use permit. The applicant does not desire to establish the Lacy loadout at this time nor does the applicant have the permits from other agencies that must precede issuance of a Garfield County special use permit for the loadout. The Board acknowledged the practice of issuing multiple land use permits in the very preamble of Resolution 90-083 as well as in several other provisions of the resolution. It is not logical to require that all "other agency" permits be issued for land uses that are not going to be established in the near future, if at all. To that extent, the wording in Condition J is inconsistent with other provisions of the resolution as previously noted. It has not been the practice of Garfield County in the past to require issuance of "other agency" permits for all aspects of a project, but only for those land uses subject to a specific permit. A very clear example of the concept of appropriate permit acquisition is found in the second condition of approval for Phase II of the Unocal Parachute Creek Shale Oil Program which reads as follows (emphasis added). 4 • • "Prior to issuance of a special or conditional use permit, the applicant must demonstrate that the permitted use is or will be in conformance with all provisions imposed by other government regulatory authorities including the receipt of any required permits." It is useful to recall that the Phase II Resolution 85-1 authorized issuance of many permits for a massive industrial operation. Nevertheless, the "other agency" permits were required only of the specific land use permit being requested. The scale of the oil shale and the subject coal mine projects may differ, but the permitting process is essentially the same. The public interest was adequately protected in the Unocal case and will be protected in all other multiple permitted industrial operations if the same policy prevails. The question to be resolved is whether the wording in approval condition J of Resolution 90-083 represents a policy shift from past practices or is the result of inadequate attention to detail as the resolution was drafted. The latter interpretation is most likely considering the inconsistencies previously addressed, although it is not certain that the restrictive interpretation noted above is correct or that it represents the Board's intentions concerning the issuance of multiple permits and the acquisition of other permits. It seems obvious that the Board anticipated the need to issue more than one permit for the coal mine and for the loadout and that common sense and past county practices would indicate that only those "other agency" permits required for a specific special use would need to be acquired by the applicant. SUMMARY • Resolution 90-083 authorized the issuance of multiple County land use permits for the New Castle Energy project. • NCIG has requested that the County issue a special use permit for the coal mine and associated facilities and has acquired all of the permits required from other governmental agencies for the requested land uses. • Past Garfield County practice has been to require permits from other governmental agencies only for those land uses to be established by a specific conditional or special use permit - not for every potential land use authorized by a resolution. • The restrictive interpretation of condition J is not necessarily consistent with the other parts of Resolution 90-083 or past County practice. The phrase "all other permits from other governmental agencies required for the proposed special uses" from condition J, is most reasonably read in the context of the other parts of the resolution and past County practices. It may be assumed that "proposed special uses" means exactly those uses allowed by a specific special use permit. 5 April 25, 1991 SCHMU GORDON MEYER INC. at o 117 CONSULTING ENGINEERS & SURVEYORS/ Mr. Rushton 0. Backer NCIG Financial, Inc. 7476 East Arkansas Avenue, Unit 4 Denver, CO 80231 • 1001 Grand Avenue, Suite 2-E Glenwood Springs, Colorado 81601 (303) 945-1004 (303) 925-6727 Fax (303) 945-5948 RE: Construction Schedule for County Road 335 Dear Mr. Backer: Please find enclosed a proposed construction schedule for County Road 335. The enclosed schedule indicates a 20 -week schedule from beginning of engineering to final acceptance by the County. To date, approximately 65% of the final engineering drawings are complete. It will take us approximately three weeks to finalize drawings ready for construction level drawings. We have not allowed for any bad weather days. In addition, several of the items on the schedule are a function of third party time, including county review, right-of-way acquisition and utility relocation which may require additional time. Therefore, I would suggest a 24 - week or six month schedule is appropriate for this project. If we can provide any additional information, please contact us. Sincerely, SCHMUESER GORDON MEYER, INC. Louis Meyer, P.E. LM:Ic/90158 Enclosure • • • 0 N 1 1 i r 1 O .O • I O i.4• Os - ▪ 1 VI 1 t I W I N▪ . 1 0 1 , . 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I I I , X $ $ $ .O — +— +— +— +— +— +— +— 4 4 — +— +— — + x +— t— +— 4— +— 4— +— +— +— + c 1 x, i 1 m X 0 m — +— +— +— +— 4— +— t— +— +— +— + X +— +— +— 4— +— +— +— +— +— +— + N X i —+—+—+-4—+—+—+—+-4—+—t—t—+—t—+—+—t—+—+-4—+—+ X X N - +-+-t-t-+-+-+-t-+x 4X +-+-+-t-t-+-t-+-+-+-+-+ X W X —+ — +- +— X 1 X X X X — +—+—+—+—+—+—+ +X 1 X $ X - X. X X X t- +- +- +- + - +-+-t-+- +-+- - t t - t - t - t - + - + +- +-4 - +- +- 4 P +- t - -4-+-t-+- t -+- V -+-t-+-+-+- X. t - +- +- t- co -t-+-+-4-+-t-+-t-+-t-+-+-t-t-+-t-4-t-+-+-+-+ X 10 X - + YC t X 4.- +- t- t- +- t- +- t- +- +-- t- t- t- +- t- t- +- +- +- + x , x . x N X X X 0 -+-+-+-+-t-+-+-+-t-+-+-+-+-+-t-+-+-+-+-+-+-+ .41 z 0 Z O Z m c- 72 m ti -4a Z C) C) --1 -i O r z m y per_ C m C - r- - , m 70 0 0 w v, C) 0 N a C 0 ,V* \,),1\*Id/j\ STATE OF COLORADO MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 , rr-,i,-- r_r_r_-_, _7.......,,r) .... .. tI,_11-,,,, MI n i� I E 2 I d d l Apri 1 16, 1991 (idfWFU) COUNTY t;ti;;SiONERS Roy Romer, Governor Fred R. Banta, Division Director Garfield County Board of Commissioners 109 8th Street - Suite 200 Glenwood Springs, CO 81602 Dear Garfield County Commissioners: Pursuant to Title 33, Article 34, Paragraph 3, of the Colorado Revised Statutes, the Mined Land Reclamation Division hereby issues notice that on April 15,1991, an application for renewal of a valid, existing permit to conduct coal mining operations, Permit No. C-84-065, by New Castle Energy Corporation, 7476 E. Arkansas Avenue - #104, Denver, CO 80237, was deemed complete for the purposes of filing. All reviews and comment periods as provided in the Act and Regulations promulgated thereunder initiate from this day of filing. The applicant proposes to continue conducting underground coal mining operations on T6S, R91W, Section 1: Those lands in the NE/4 yet south of County Road 335, lots 3 and 4, S/2, S/2 NW/4. T6S, R90W, Section 6: All lands south of County Road 335 and a strip of land (25 feet wide by appr. 400 feet long) which extends north from the county road to the Colorado River, just eat of the mine entrance road. T6S, R90W, Section 5: All lands in S/2 SW/4. T6S, R90W, Section 8: All lands in N/2, N/2 SE/4, and NE/4 SW/4. T6S, R90W, Section 9: All lands in S/2, NW/4 and SW/4. T6S, R90W, Section 15: All lands in NW/4. T6S, R90W, Section 7: All lands in NW/4 and N/2 NW/4. T6S, R91W, Section 12: All lands in N/2 NE/4, NE/4 NW/4. T6S, R90W, Section 16: All lands in N/2 NE/4, NE/4 NW/4. being 2,525 acres more or less. • • Garfield County Board -2- April 17, 1991 The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain. A copy of the application is available for public inspection at the Garfield County Courthouse, 109 8th Street - Suite 200, Glenwood Springs, CO. Written comments, objections or requests for an informal conference on the application may be submitted to, and additional information obtained from. the Mined Land Reclamation Division, Room 215, 1313 Sherman Street, Denver, Colorado 80203, (303) 866-3567. Written comments, objections or requests for an informal conference must be filed at the Division by 5:00 p.m., within thirty days after the last public notice in the local newspaper. Sincerely, e Lz4 William B. Crick Reclamation Specialist 1723G • DAVID R. STURGES • ATTORNEY AT LAW P.O. BOX 101 Glenwood Springs, Colorado 81602-0101 Garfield County Board of County Commissioners Garfield County Courthouse 109 8th Street Glenwood Springs, CO 81601 Dear Commissioners: lblephone (303) 945-5748 April 15,1991 RE: Resolution No. 90-083 New Castle Energy Corporation and NCIG Financial, Inc. As you consider NCEC/NCIG's request to issue a special use permit for the Coal Ridge No. 1 mine's reopening, you will have to consider the meaning of Special Condition 2.J. of Resolution No. 90-083. The particular section which is found in most if not all permits issued by the County provides as follows: J. That copies of all other permits from other governmental agencies required for the proposed special uses be submitted to the Planning Department prior to issuance of any county special use permits. Further that the applicant shall comply with all State and Federal regulations. We have submitted to Mark Bean copies of all other permits from agencies who have determined for themselves what permits are required from their agencies for the proposed uses. There is no permit that has been yet issued by the MLRD for the Lacy loadout. We are aware from reviewing Ed Sands letter dated March 18, 1991 to Don DeFord that Mr. Sands' clients believe that the County's special use permit should not be issued "until all necessary permits from the MLRD have been obtained by NCEC and submitted to the Planning Department". We understand that GCA believes that the MLRD permit for the Lacy loadout is a "necessary permit from the MLRD". The MLRD and the MLR Board have each considered this issue previously as raised by the GCA. See page 30 of the MLRD proposed decision of October 19, 1990 where the MLRD specifically finds "that a mine can be permitted without a loadout". This issue was specifically appealed by the GCA and the MLR Board affirmed this finding by the MLRD. See fording #3 on page 1 of the MLR Board's Findings of Fact, Conclusions of Law, And Order issued by the MLR Board on December 18, 1990. Thus, we submit that the MLRD and the MLR Board have spoken to this very issue of what permitted uses are necessary in order to have a mining and reclamation permit issued. The County has never in my knowledge required an applicant to demonstrate that it has 1 • • obtained all permits which might be needed over the life of the project, but only those "other agency" permits that are required to establish a land use authorized by a specific special use permit. Additionally, it is our understanding that the County has issued multiple and sequential permits for various uses that were authorized under one resolution. Based on this understanding, we have not requested a special use permit for the Lacy loadout at this time and will only do so when the MLRD permit has been issued and the Lacy loadout is necessary for our mining operation. There are real and legitimate questions and issues which need to be addressed in the public permitting process. We have tried to respond to those questions and issues as they have arisen. We have tried to accord our opponents with due process while pursuing our permitting goals. We have reviewed the transcripts of the public hearings and can find no support for the meaning and interpretation that the GCA urges upon you at this time. Sincerely yours, David R. Sturg 2 • • DAVID R. STURGES ATTORNEY AT LAW P.O. BOX 101 Glenwood Springs, Colorado 81602-0101 Mr. Mark Bean Planning Department Garfield County 109 8th Street Glenwood Springs, CO 81601-3303 Dear Mark, Dtj'el ti'.t �fV�' :Zvi F APR 12 1991 j `.kjj Emil-ILLD COUNTY Telephone (303) 945-5748 April 12, 1991 RE: Resolution No. 90-083 New Castle Energy Corporation and NCIG Financial, Inc. As a follow up to my letter to you dated April 8th, 1991, I am submitting this letter and the following attachments to demonstrate compliance with all conditions of approval set forth in Resolution No. 90-083 for the issuance of the approved special use permit. The documents submitted are described as follows: 1. Landscaping and Road Improvements Agreement which covers the two bonds required in Conditions 2.G. and 2.H of this resolution. I have tried to draw up this agreement along the lines of past agreements which the County has accepted. I hope, with the County's concurrence in the form of this agreement, to be able to present the actual bonds to the County at its consideration of our request on Monday, April 15th. 2. Copies of all other permits from other governmental agencies required for the special uses requested. Specifically, these permits are the following: a. CMLRD Permit C-84-065, issued on October 19, 1990 and affirmed by the Colorado Mined Land Reclamation Board on December 18, 1990. As this CMLRD permit does not authorize the use of the Lacy loadout and because this Lacy loadout is currently the subject of a pending permit revision with the CMLRD, this special use permit being requested does not need to cover the Lacy loadout. Once the CMLRD issues a permit revision which covers the Lacy loadout, we will ask the County to issue a subsequent special use permit for this loadout site which was fully considered and approved in Resolution 90-083. b. CDH Air Emission Permits 84GA323F (1, 3-12) and 85GA335 (1- 3) which were approved for extension on May 8, 1990. • c. CDH NPDES Permit No, COG -850005 (formerly CO -0040894) issued on July 24, 1989. 3. Findings of Fact, Conclusions of Laws, and Order Authorizing and Approving Sale of All The Estate's Assets to NCIG Financial, Inc. Pursuant to Section 363(b) and (f) and For The Assumption and Assignment of Certain Unexpired Leases Pursuant to Section 365 issued by the United States Bankruptcy Court ( Judge Donald E. Cordova) on March 29, 1991. This court order, which orders that the sale of the these assets to NCIG Financial, Inc. to be free and clear of all liens, claims, and encumbrances, requires the Interim Trustee to consumate the sale. The closing is currently scheduled for Monday, April 15th. I have tried to get this closing resheduled to an earlier date, but have been advised that it cannot occur sooner than this date because of the number of documents that must be prepared for it and due to some schedule conflicts between the various parties necessary for the closing. Before actually issuing this permit, I trust the County would like to review the Bill of Sale executed in this sale to assure itself that NCIG Financial, Inc. is the legal successor to NCEC's interest in this special use permit. I will submit this Bill of Sale and any other documents requested by the County as soon as they are available following the closing. I have contacted Paul D. Stuber, the Interim Trustee, to request him to provide me with some written verification that he authorized me to seek the issuance of this special use permit in the name of NCIG Financial, Inc. under the authority of this Court order and in anticipation of this closing. While we maintain the position that the pendency of litigation against the County challenging its approval of Resolution No. 90-083 "tolls" the running of the time frames or specific dates in the this resolution, we take this action to request the issuance of this special use permit only out of a position of extreme legal caution. To resolve the question of the appropriateness and legal effect of certain specific dates currently in this resolution, we are making a separate submission to the Board of County Commissioners to modify the language of these specific dates to reflect more appropriately the public interest concerns reflected in the public hearings. Please contact me as soon as possible with any questions you or Don DeFord may have. cc: Don DeFord Rush Backer Sincerely yours, 2 David R`Sturg-s • • STATE OF COLORADO DEPARTMENT OF NATURAL RESOURCES COLORADO DIVISION OF MINES Hamlet J. Barry III, Commissioner Mr. Mark Bean County Planner Garfield County Dear Mr. Bean: Roy Romer, Governor This is to inform you that Coal Ridge #1 is entitled to both diesel and explosives permits. These specific permits are in an inactive status time. The division will wait for the formal change in ownership updated permits. Diesel permits are only issued after the on site, and like motor vehicle registration, is meant for specific piece of equipment. Explosives use is formally indicated, and a division location, and use. at before this issuing equipment is brought a designated, permits are not issued until their inspector reviews the site, storage If you have any questions please feel free to call. Sincerely, J.W. Nugent G " Chief Inspector 1313 Sherman Street, Denver, Colorado 80203 866-3401 P.O. BOX 101 Glenwood Springs, Colorado 81602-0101 Mr. Mark Bean APR 8 1991 Planning Department ; Garfield County GARFIELD COUNTY 109 8th Street Glenwood Springs, CO 81601-3303 DAVID R. STURGES ATTORNEY AT LAW Dear Mark: Telephone (303) 945-5748 April 8, 1991 Re: Resolution No. 90-083 New Castle Energy Corporation As you know, the Board of County Commissioners on October 16, 1990, approved the above specified resolution which authorized the issuance of a Special Use Permit for the further development of the Coal Ridge No. 1 Mine. As was discussed in those proceedings, it was then New Castle Energy Corporation's (NCEC) intention to file for some form of financial reorganization under the bankruptcy laws in the period following the approval of this resolution. NCEC did file for reorganization under Chapter 11 in December, 1990. To accomplish its goals more expeditiously this case was voluntarily converted to a Chapter 7 liquidation in late January, 1991. Shortly after this conversion, NCIG Financial, Inc. (NCIG) submitted an offer to the interim trustee to purchase the assets of NCEC which included the assets comprising the Coal Ridge No. 1 Mine. This offer was accepted by the interim trustee, Paul D. Stuber, who filed the appropriate notices and disclosures and requested the Bankruptcy Court to approve this sale of NCEC's assets to NCIG. On March 29th, 1991, the Bankruptcy Court signed and entered its order approving of this sale to NCIG. A formal closing of this sale is being scheduled for early next week. I have been asked by NCIG to seek in their behalf the issuance of this Special Use Permit and ask that you treat this letter as NCIG's formal request to issue this permit. I am currently making copies of the permits mentioned in paragraph 2.J. for your office's files. I am working with your office and with Don DeFord to finalize the terms of an agreement that will specify the terms of the performance bonds required and which NCIG intends to submit in conformance with paragraphs 2.G. and 2.H. for the issuance of this permit. Lastly I am putting together for your files copies of the documents which demonstrate NCIG's acquisition of the assets of NCEC. I hope to have these documents (with the exception of the final closing documents) to your office within a few days. I would ask now, in affirmation of my earlier requests, that you schedule this matter for any necessary action on the Board's agenda for April 8th and 15th of April. Please advise me of anything else you think is necessary or helpful for your issuance of this permit. Si cerely your pk\tri a'dR.S r P.O. BOX 101 Glenwood Springs, Colorado a1602 -010t Garfield County Board of County Garfield County Courthouse 109 8th Street Glenwood Springs, CO 81601 Dear Commissioners! DAVID It. SPURGES AY I'ORNEY AT LAW Commissioners lt~lephone (303)144g-5748 April 12, 1991 fg_PaTig 4:55 PM. I APR 12 1991 GARFIELD COUNTY RE: Resolution No. 90-083 New Castle Energy Corporation and NCIG Financial, Inc. Garfield County Resolution No. 90-083 authorized the issuance of special use permits for the purpose of constructing and operating a coal mine and associated facilities and a coal loadout facility on property near New Castle, Colorado which has been owned or leased by New Castle Energy Corporation (NCEC) but now is (or shortly to be) owned or leased by NCIG Financial, Inc. (NCIG), the successor -in -interest to NCEC's interests. The purpose of this letter is to request that certain conditions of Garfield County Resolution No. 90-083 be amended to reflect the principal that the required public and private improvements associated with the development and operation of the mine are necessitated solely by the construction and operation of the mine and that without such construction and operation the improvements are not needed. NCEC and NCIG do not question the appropriateness of the conditions stated in Resolution No. 90-083, but is concerned that the time deadlines specified in the Resolution are not closely associated with the practical development of the mine and associated facilities. This is particularly so in light of the uncertainties surrounding the outcome of the current litigation involving the Garfield County and State of Colorado approvals of this project. NCEC and NCIG respectively requests that the Board of County Commissioners reconsider the conditions of Resolution No. 90-083 that specify time deadlines that are not reasonably associated with the actual construction and operation of the coal mine and associated facilities. It is requested that the following relevant conditions of approval be amended to read as follows. [he numbers reference the section numbers of Resolution No. 90-083] 2.G. Landscaping shall be sufficient to mitigate the impact produced by site disturbance and construction of mine facilities. All landscaping shall be adaptable to soil and climatic conditions, able to withstand disease and pests common to this area. Trees shall have an average caliper of two and one -•half inches (2 1/2") measured one foot (1') from ground level. No tree shall be less than two inches (2") in caliper. No conifer shall be less than six ft (6') in height. All planted areas shall have a working irrigation system that has sufficient quantities of water available to maintain the plant materials. Any tree that dies shall be replaced as soon as practical depending on the season of the year, but • • in any case within six (6) months, by a tree of the same size and type. The applicant shall initiate the planting of trees along the eastern and northern periphery of the site as the first phase of the landscaping . All such "first phase" plantings shall be completed within six (6) months of commencement of any on-site construction activities. Remaining landscaping specified in the landscaping plan submitted with the application shall be completed within six (6) months of completion of on-site construction activities. Pursuant to Resolution No. 84-261, the Board reserves the right to require an increase in the number of trees by a factor of 200%, the type and size of trees planted, it is deemed by the Board that the landscaping planted is inadequate to mitigate the impact of the mining operation. Prior to the issuance of any special use permit, the Board will require security to guarantee the completion and maintenance of all landscaping in the amount of Twenty - Five Thousand Dollars ($25,000) for the life of the permits authorized by this resolution. 2.11. The applicant shall rebuild County Road 335 by the addition of a minimum of two (2) inches of 3/4" base material and four (4) inches of asphaltic pavement from the entrance of the mine to the intersection with the I-70 Interchange. The road improvements shall result in a 24 ft (24') wide driving surface, with a 6 ft. (6') wide, two inch (2") thick asphaltic surfaced shoulders with ditches 3 ft (3') wide and 1 ft. deep; and a 150 ft. long and 10 ft. wide (150' X 10') paved deceleration lane at the entrance to the mine site. The asphaltic surface from the mine entrance to the intersection of County Road 335 and 1-70 Interchange shall be striped in a manner to delineate driving lanes and shoulders. The remainder of County Road 335 will be chip and sealed to the first intersection within the Riverbend Subdivision. The road construction shall comply with the additional recommendations of the Road and Bridge Supervisor as noted in his recommendations to the Board and the guard rail recommended in the Traffic Impact Analysis labeled Exhibit C-2 at the public hearing. All on-site roads to and including the parking lot, the coal truck loading facility and administration/processing facilities shall be paved within one (1) year of the commencement of on-site construction activities. All other internal roads and lay down areas shall be treated with a dust retardant on an as needed basis to be determined by the Board. The applicant shall complete shall complete all off-site road improvements prior to commencement of mining activities with the exception of that portion of County Road 335 between the entrance to the mine site and the Riverbend Subdivision which shall be chip and sealed , as specified above, prior to commencement of on-site construction activities. Prior to issuance of any special use permits, the applicant shall provide Garfield County with security in the amount of Five Hundred Thousand Dollars 2 • • ($500,000.00) to guarantee the completion of the off-site road improvements. Such security shall be in a form acceptable to the Board of County Commissioners and may include a bond, letter of credit or cash. Additionally, based upon the representations of the, applicant at the public hearing, Garfield County, at its election, may require that such security be received from financially secure third parties unrelated to this applicant. 2.0. The applicant shall have 180 days from the approval of this resolution to comply with all conditions of approval. The applicant shall initiate construction activities or establish a land use authorized by Resolution No. 90-083 and the issuance of a special use permit for the specific land use. The County, at its sole discretion, may issue separate special use permits for each land use or may elect to issue a single special use permit for all of the uses authorized by Resolution No. 90-083. It is understood that the Board will schedule a public hearing to consider the clarifying amendments requested above. Please advise me of the time and date of the public hearing as soon as possible in order that public notice requirements can be met. The time constraints of Resolution No. 90-083 make it imperative that the public hearing be held as soon as possible. If you have any questions or require additional information, please do not hesitate to call me. cc: Don DeFord Mark Bean Rush Backer 3 Sincerely yours, David R. Sturges • • BEFORE THE MINED LAND RECLAMATION BOARD STATE OF COLORADO File No. C-84-065 FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER NEW CASTLE ENERGY CORPORATION, PERMIT REVISION NO. 1 THIS MATTER having come before the Mined Land Reclamation Board ("the Board") on December 13, 1990 for a hearing pursuant to 534-33-119, C.R.S. (1984), the Board hereby makes the follow- ing findings for fact and conclusions of law, and enters the fol- lowing order: 1. On March 9, 1990 New Castle Energy Corporation ("NCEC") submitted an application for permit revision no. 1 for its mine located in Garfield County. 2. On March 19, 1990 the Mined Land Reclamation Division ("Division") determined that the application was complete,, and NCEC caused a notice of the application to be published in a local newspaper beginning on April 5, 1990. The notice did not include a description of the precise location and the boundaries of a proposed load out area as required by 534-33-118(2), C.R.S. (1984). 3. Section 34-33-119(1), C.R.S. authorizes the Division to approve of an application in part. Approval of the application without the Lacy load out does not deprive any person of the opportunity to evaluate the cumulative impacts of the mining operation because such impacts must be evaluated prior to the approval of an application to permit the load out. 4. NCEC is a corporation and is the applicant. NCEC has not formed a partnership with any other entity to perform surface coal mining operations under this permit. Accordingly, NCEC is not required to submit the information specified in 55 34-33-110(2) (d), (e) and (f), 34-33-114(3), and Rules 2.03.4(4) and 2.03.5(3) for any other person or entity. 5. This application for a permit revision is not made • • incomplete by a failure to include a description of an existing pipeline that extends off of the permit area because NCEC does not now seek approval of the pipeline. Rather, the construction of the pipeline constitutes a violation enforceable pursuant to S 24-33-123, C.R.S. (1984). Pursuant to Rule 2.07.6(1)(b)(i)(8), the Board may approve an application notwithstanding a current violation provided the applicant submits proof, prior to the issuance of the permit, that the violation is in the process of being corrected. NCEC has submitted proof that it is in the pro- cess of correcting the violation by preparing an application for a technical revision to bring the pipeline within the permit area. 6. The application provides that mine site roads will be graveled and sealed. The existence of a conflict between the special use permit issued by Garfield County and this application is not a grounds for denial of the application. It is the appli- cant's duty to comply with both permits and to amend the permits as required before constructing any facility that will violate an existing permit term. 7. The current application seeks to revise an existing permit. This application does not propose new roads not already approved under the existing permit. Garfield Citizen's Alliance ("GCA") alleges that the application does not include a descrip- tion of the roads on the site as required by Rule 2.05.3(3)(c). However, the roads in dispute have already been approved and have been built according to such approval. The decision approving of the original permit cannot now be reversed in this proceeding on a permit revision. 8. The application for a permit revision clarifies that portion of the existing permit that allows a portion of the access road to be left in place following reclamation. Such clarification provides that the only portion of a road that may be left in place following reclamation is 2800 feet, beginning at the county road, of the road between the county road and the eastern edge of the surface facilities area. 9. The performance bond is sufficient to assure the com- pletion of the reclamation plan in the event of forfeiture. The cost of reclaiming the pipeline shall be included in the applica- tion for a technical revision to include the pipeline in the permit area. 10. The application for the original permit included a map demonstrating the timing and sequence of the mining operations over the life of the mine. Such timing and sequence has not been -2- materially altered by this permit revision. Accordingly, the applicant was not required to submit a new map of the anticipated sequence of mining and reclamation. 11. Rule 2.05.2(2) does not require the applicant to submit a map and description of each possible future load out unless the applicant anticipates that a new, separate, five-year permit will be obtained for such facility. The applicant has not yet determined the site of a future load out, if any, and does not anticipate a new, separate, five-year permit for any such load out. 12. The Division's finding that the reclamation plan is feasible assumes that 13 inches of topsoil will be available. The availability of additional topsoil will only enhance recla- mation. 13. GCA has not been denied the opportunity to submit its comments. GCA did not submit any written comments to the Divi- sion following the informal conference, except those comments that have been submitted as part of this hearing. GCA has had a full and fair opportunity to present both the Board and the Divi- sion with its comments. 14. GSA complains that it was not afforded an opportunity for a site visit. However, such complaint refers to a visit to the Lacy load out, which is not approved. GSA had an opportunity to visit the mine site. 15. Stipulations Nos. 16 and 21 are reasonable and are necessary to ensure that all affected areas will be reclaimed in a timely manner as required by Rule 4.16.1. 16. The attached Errata Sheet is necessary to make several editorial changes to the Division's proposed decision. ORDER For the foregoing reasons, the Division's proposed deci- sion, as amended by the attached Errata Sheet, is affirmed. DATED thig 126- day of December, 1990. FOR THE MINED LAND RECLAMATION BOARD -3- JAM'S !- COOLEY Cha Mined Land Reclama'ion Board AG Alpha No. NR LR ICABU AG File No. E9016915.88 • • List of Stipulations Resulting from this Permit Revision Approval: STIPULATION N0. 16 IN THE EVENT THAT NEW CASTLE ENERGY CORPORATION'S (NCEC) LAND USE PERMITS ARE INVALIDATED. NCEC SHALL COMPLETE RECLAMATION OF THE SITE WITHIN SIX MONTHS OF THE DATE OF INVALIDATION UNLESS THE DIVISION MAKES A WRITTEN FINDING TO EXTEND THE PERIOD OF TEMPORARY CESSATION. THE DIVISION'S FINDING SHALL BE BASED UPON INFORMATION SUBMITTED BY NCEC TO THE DIVISION DEMONSTRATING THAT GOOD CAUSE EXISTS TO ALLOW FOR AN EXTENDED PERIOD OF TEMPORARY CESSATION. STIPULATION N0. 17 FOLLOWING DIVISION INSPECTION OF THE AREA OF WELL OW -4L, THE APPLICANT SHALL WITHIN 60 DAYS EITHER A) IF THE WELL HAS NOT BEEN LOCATED, SUBMIT A REPORT IN COMPLIANCE WITH RULE 4.07.3(3) WHICH DESCRIBES THE CIRCUMSTANCES BEHIND LOSS OF THE WELL. OR B) RECLAIM THE WELL IN ACCORDANCE WITH 4.07.3. STIPULATION N0. 18 THE APPLICATION PROVIDES FOR THE REPLACEMENT OF 16 INCHES OF TOPSOIL. WITHIN 180 DAYS OF THE PERMIT ISSUANCE, THE APPLICANT SHALL RESURVEY ALL EXISTING TOPSOIL PILES AND DETERMINE THE AMOUNT OF TOPSOIL ACTUALLY AVAILABLE. BASED ON SUCH SURVEY THE RECLAMATION PLAN MAY BE MODIFIED, BUT SUCH PLAN SHALL NOT BE MODIFIED TO ALLOW THE REPLACEMENT OF LESS THAN 13 INCHES OF TOPSOIL. STIPULATION N0. 19 SPECIES DIVERSITY ON AREAS RECLAIMED TO NATIVE VEGETATION SHALL BE DEEMED SUCCESSFUL IF THE PERMITTEE ESTABLISHES AT LEAST FOUR (4) COOL SEASON GRASSES AND TWO (2) FORBS WITH EACH SPECIES NOT REPRESENTED BY MORE THAN THREE (3)% RELATIVE COVER OR MORE THAN 40% RELATIVE COVER. COVER TO BE DETERMINED BY MEASUREMENTS MADE FROM VEGETATIVE COVER DATA ASSEMBLED DURING SAMPLING FOR MONITORING OR REVEGETAIION SUCCESS DETERMINATIONS. STIPULATION N0. 20 WITHIN SIX MONTHS OF THE FINAL APPROVAL DATE OF THIS REVISION, THE PERMITTEE WILL SUBMIT A DETAILED DESIGN PLAN FOR THE COAL MINE WASTE DISPOSAL STRUCTURE AS REQUIRED BY RULE 2.05.3(8)(ii). CONSTRUCTION OF THE STRUCTURE WILL NOT BEGIN UNTIL THE DIVISION HAS APPROVED THE DETAILED DESIGN, IN WRITING. STIPULATION NO. 21 IN ORDER TO MONITOR THE VOLUME OF COAL MINE WASTE MATERIAL DISPOSED OF IN THE APPROVED PILE. THE STRUCTURE WILL BE SURVEYED BY A QUALIFIED REGISTERED ENGINEER DURING EACH QUARTERLY SITE INSPECTION REQUIRED BY RULE 4.10.2. THE PERMITTEE WILL SUBMIT A COMPLETE PERMIT REVISION APPLICATION ADDRESSING ALTERNATIVE COAL MINE WASTE DISPOSAL PLANS BEFORE THE VOLUME OF MATERIAL IN THE APPROVED PILE EXCEEDS 10,000 CUBIC YARDS. IF NO ALTERNATIVE WASTE DISPOSAL PLAN IS APPROVED. MINING OPERATIONS WILL CEASE WHEN THE APPROVED DISPOSAL PILE VOLUME REACHES 15.000 CUBIC YARDS, ANO THE PERMITTEE WILL INITIATE AND COMPLETE RECLAMATION OF THE ENTIRE MINE SITE WITHIN SIX MONTHS OF THE CESSATION OF MINING. STIPULATION NO. 22: FIGURE 4.2-2 SUBMITTED ONACTOBER 31, 1984 AS PART OF THE ORIGINAL APPLICATION TO SHOW THE TIMING AND SEQUENCE OF MINING, AS WELL AS ALL OTHER INFORMATION IN ANY WAY RELATING TO THE LIFE OF THE MINE MINING PLAN WHICH WAS CONTAINED IN THE ORIGINAL APPLICATION, SHALL REMAIN IN EFFECT FOR PURPOSES OF DEMONSTRATING SUCH TIMING AND SEQUENCE, AND IS INCORPORATED INTO THIS REVISED PERMIT. SUCH FIGURE 4.2-2 SHALL NOT BE USED TO DEMONSTRATE THE PERMIT AREA`AS REVISED,OR THE AREA APPROVED FOR DISTURBANCE. THE AREA APPROVED FOR DISTURBANCE AS REVISED, HAS BEEN DESCRIBED IN FIGURE 4.2-3. THE PERMIT AREA AS REVISED, IS DESCRIBED IN FIGURE 2.1-1. Errata Sheet a. page 1, paragraph 1, 1st sentence - rewrite the end of the sentence to read "... Coal Ridge No. 1 Mine, Permit Revision No. 1." b. page 4, paragraph 4, 2nd sentence - rewrite to read "Because of the many unresolved'issues remaining from the originally proposed mining and reclamation plan ..." c. page 10, 2nd line from the top - substitute the word "west" for "east" so that the phrase now reads "... previously proposed load -out site west of Riverbend subdivision ..." d. page 10, paragraph 1 under VII, 2nd sentence - delete the phrase "which owns a portion of the coal to be mined." e. page 13, paragraph 4, 3rd sentence - rewrite to read "While this refuse pile is designed to'be placed on a V-shaped low permeability pad with a sump collection system,'it will be located over unconsolidated colluvial material, and there is some potential for leaching ..." f. page 14, paragraph 2, 2nd sentence - delete entire sentence, "The life of mine areas of these mines are plotted on Figure 3." g. page 17, Table 3 - substitute "NCEC Coal Ridge No. 1 Mine" for "Storm King Mines." h. page 20, paragraph 2, 2nd sentence - rewrite to read "... consume 300 acre feet." i. page 20, paragraph 2. 3rd sentence - rewrite to read "... flow of 0.42 cfs." j. page 24, sentence under Section XVI - rewrite to read "The applicant states that no further surface blasting is to take place at the site." k. page 25, paragraph 1, 4th sentence - rewrite to read "The Mine Safety and Health Administration (MRSA) has indicated that they do not consider the proposed backstowing plan to be approvable." 1. page 27, paragraph 1 under Section XXII, 1st sentence - rewrite to read "The applicant has performed an investigation to identify renewable resource lands which could be impacted by subsidence." m. page 30, 7th item. entitled "NCEC has no permitted load -out," 2nd sentence - rewrite to read "see Section XIX of this document ..." n. pages 2 and 21, Stipulation No. 18, is reworded to read: THE APPLICATION PROVIDES FOR THE REPLACEMENT OF 16 INCHES OF TOPSOIL. WITHIN 180 DAYS OF THE PERMIT ISSUANCE, THE APPLICANT SHALL RESURVEY ALL EXISTING TOPSOIL PILES AND DETERMINE THE AMOUNT OF TOPSOIL ACTUALLY AVAILABLE. BASED ON SUCH SURVEY THE RECLAMATION PLAN MAY BE MODIFIED, BUT SUCH PLAN SHALL NOT BE MODIFIED TO ALLOW THE REPLACEMENT OF LESS THAN 13 INCHES OF TOPSOIL. /ern 2022F MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 March 8, 1991 Mr. Dennis Stranger Garfield County Planning Department 109 8th Street Suite 200 Glenwood Springs, CO 81602 Dear Mr. Stranger: STATE OF COLORADO f rl MAR 2 0 1991 of �4t *1876 Roy Romer, Governor Fred R. Banta, Division Director Pursuant to Title 34, Article 35, Paragraph 3, of the Colorado Revised Statutes, the Mined Land Reclamation Division hereby issues notice that on March 8, 1991, an application to revise a permit to conduct coal mining operations File No. C-84-065 (PR - 0021, by New Castle Energy Corporation, 7476 E. Arkansas Avenue - #104, Denver, CO 802.37, was deemed complete for the purposes of filing. This revision proposes to incorporate an off-site rail load -out facility into the permit. All reviews and comment periods as provided in the Act and Regulations promulgated thereunder initiate from this day of filing. The applicant proposes to incorporate a rail load -out facility in the SW1/4 NW1/4 Section 23, Township 6 South, Range 94 West. The above-mentioned tract of land is shown on the USGS 7.5 minute quadrangle map titled Rifle. A copy of the permit revision application is available for Public inspection at the Garfield County Courthouse, 109 8th Street - Suite 200, Glenwood Springs, CO, Written comments, objections or requests for an informal conference on the permit revision application may be submitted to, and additional information obtained from, the Mined Land Reclamation Division, Room 215, 1313 Sherman Street, Denver, Colorado 802.03, (303) 866-3567. Sincerely, William B. Crick Reclamation Specialist 1280G • • LANDSCAPING AND ROAD IMPROVEMENT AGREEMENT THIS LANDSCAPING AND ROAD IMPROVEMENT AGREEMENT ("Agreement"), dated April , 1991, is between NCIG Financial, Inc., a Minnesota corporation ("NCIG") and the Board of County Commissioners of Garfield County, Colorado ("County"). RECITALS A. New Castle Energy Corporation ("NCEC") submitted an application for special use permits for the purpose of constructing and operating a coal mine and associated facilities, including a coal loadout facility, in substantial compliance with the Garfield County Zoning Resolution of 1978, as amended, and under the authority granted under Section 30-28-101, et seq., C.R.S., as amended, relating to the real property described in Exhibit A attached hereto and incorporated herein. B. The County conducted a public hearing as required by the Zoning Resolution of 1978, as amended, on September 17, 1990 and continued said public hearing to October 1, 1990, in the Garfield County Courthouse, Commissioners' Meeting Room, regarding the question of whether the special use permit application should be granted, and, if granted, whether any conditions should be imposed on such special use permits, and, during the public hearing received extensive testimony and other evidence from the applicant and interested parties. C. After considering this application and the matters submitted in the public hearing, on October 16, 1990 the County made the required findings and granted NCEC's application and request for special use permits, subject to the conditions of approval set forth in Garfield County Resolution No. 90-083. D. NCEC filed a voluntary Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of Colorado, on or about December 19, 1990. E. The NCEC bankruptcy was converted to a Chapter 7 proceeding on or about January 28, 1991. F. NCIG submitted an offer to acquire all of the assets of the NCEC bankruptcy estate. On March 29, 1991 Bankruptcy Court Judge Donald E. Cordova issued his findings of fact, conclusions of law, and order authorizing and approving the sale of all of the NCEC bankruptcy estate's assets to NCIG. Among the specified assets of NCEC's bankruptcy estate and specified in the offer to purchase were the special use permits authorized in Garfield County Resolution No. 90-083. G. NCIG has requested the County to issue to NCIG the special use permits previously approved for NCEC, for the purposes of constructing and operating a coal mine and associated facilities. 1 • • H. The County has agreed to grant to NCIG the special use permits previously approved for NCEC, subject to the conditions of approval set forth in the Resolution, which requires, among other things, NCIG's agreement to enter into this Agreement in order to assure completion of the landscaping plan approved by the County and the upgrading of Garfield County Road 335 as approved by the County. AGREEMENT NOW THEREFORE, in consideration of the mutual promises, representations, warranties, covenants, conditions, and agreements contained in this Agreement, the parties, intending to be legally bound by the terms of this Agreement, agree as follows: 1. NCIG shall implement the landscaping plan approved by the County as set forth in Condition 2.G. of Resolution No. 90-083, or as it may be modified by the County. 2. NCIG shall upgrade County Road 335 according to the plan specifications as set forth in Condition 2.H. of Resolution No. 90-083, or as it may be modified by the County. 3. In order to assure the completion of the landscaping plan and the road upgrade plan set forth herein, NCIG has obtained and shall deliver to the County two bonds as set forth below: a. A bond in the amount of Twenty -Five Thousand Dollars ($25,000.00) to guarantee the completion and maintenance of the landscaping plan required and approved by the County. b. A bond in the amount of Five Hundred Thousand Dollars ($500,000.00) to guarantee the completion of the County Road 335 upgrade required and approved by the County. 4. NCIG, or its primary landscaping or road construction contractor, may at any time or from time to time submit to the County one or more certificates stating that one or more of the improvements has been completed according to the applicable specifications, and therein allocate to such improvement sums representing their statement as to the cost thereof. Such certificates shall be known as "Certificates of Completion". Such Certificate may relate to partial completion and partial cost allocation of the costs of the improvement completed in relation to the whole improvement specified in the particular plan as approved by the County. The County, at its option, may inspect the completed work, but must within 30 days thereof notify NCIG in writing of the County's acceptance or rejection of the certification of the completion of the specified work. Notice of rejection shall specify in detail the reasons for such rejection and specify any corrective measures acceptable to the County. 5. Upon the County's acceptance of the Certificate of Completion of any of said improvements and statement of the cost allocated to such improvement, NCIG may apply to 2 • 1 surety, by tender of the written acceptance as set forth above, for a reduction in the face value of the surety bond in an amount equal to the sum allocated for the cost of the completion as specified in the Certificate. Upon full and final completion of the improvements required herein, the bond shall be returned to NCIG for surrender to its issuer. 6. Unless otherwise provided by law, if the County believes there may be a violation of any special use permit or the resolution authorizing the grant of same, the County shall give NCIG written notice of the alleged violation at least 30 days prior to any scheduled public consideration of the alleged violation. If there is some allegation but independent verification by the County that the alleged violation is or is likely to cause some immediate and irreparable harm to the public health, safety, and welfare, then the County may give a shorter notice to NCIG, but in no case shorter than three (3) days notice. 7. Upon full execution of this agreement, the filing of the copies of all other permits pursuant to Condition 2.J. of the resolution, and the delivery to the County of these two bonds, NCIG shall be entitled to receive the special use permits authorized by Resolution No. 90-083. 8. Notices required to be given hereunder shall be sufficient if personally delivered or placed in the United States mail, with first class postage prepaid and addressed as follows: To NCIG: With a copy to: To County: Rushton O. Backer NCIG Financial, Inc. P. O. Box 92092 Los Angeles, CA 90009 David R. Sturges, P.C. Attorney at Law P.O. Box 101 Glenwood Springs, CO 81602-0101 Board of County Commissioners Garfield County 109 8th Street, Suite 301 Glenwood Springs, CO 81601 9. This Agreement shall be enforced and construed in accordance with the laws of the State of Colorado. 10. This agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective legal representatives, successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above mentioned. 3 • • ATTEST: Clerk to the Board 4 NCIG Financial, Inc., a Minnesota corporation By: Its: Board of County Commissioners for Garfield County, Colorado By: Chairman • • Carter & Sanas, P.C. 201 West Third St., Suite 201 P.O. Box 192 Rifle, Colorado 81650-0192 Facsimile: (303) 625-3989 Telephone: (303) 625-1075 March 18, 1991 Attorneys at Law Stephen L. Carter Edward P. Sands Mr. Don K. DeFord Garfield County Attorney ,VIA FAX: (303) 945-2379 SUBJECT: New Castle Energy Corporation's Special Use Permits Our file No. 82/90 Dear Don: As you may remember, during my closing arguments on New Castle Energy Corporation's ("NCEC") Motion for Preliminary Injunction, I argued to the Court that the County could not issue any special use permits to NCEC until the company obtained all necessary State permits, specifically a permit from the Colorado Mined Land Reclama- tion Board ("MLRB") for its Lacey load -out facility. As you know, Judge DeVilbiss, in the telephone conference of Friday, March 15, 1991, indicated that the Court need not decide that issue in order to reach a decision on NCEC's Motion for Preliminary Injunction. Thus, 1 would like to clarify the position of my clients, the named Plaintiffs in 90 CV 306-3, regarding this matter. Section 2(J) of Garfield County Resolution No. 90-083 states NCEC's application is granted subject to the following condition of approval:. "That copies of all other permits from other governmental _agencies required for the proposed special uses be submitted to the Planning Department prior to the issuance of any County special use permits. Further, that the applicant shall comply with all State and Federal regulations." (Emphasis added). ' The Garfield Citizens Alliance and the other Plaintiffs in 90 CV 306-3 believe Section 2(J) means precisely what it says. There is no need to assign some convoluted :interpretation to these plain words. No special use permit shall be issued to NCEC, for either the mine facility or the load -out facility, until all necessary permits from the MLRB have been obtained by NCEC and submitted to the Planning Department. My clients believe there is ample support in the hearing record for this interpretation. As you may remember, much testimony and evidence was presented concerning the load -out facility. Many of those who testified or submitted written comments were concerned the Lacey load -out facility would not be adequate to handle full produc- tion at the mine of 1,000,000 tons per year. These persons suspected Mr. uon h. D Ford • • March 18, 1991 Page 2 the company still desired to construct a load -out facility capable of handling lull production from the mine at a different location, possibly the Riverbend Subdivision, as originally proposed by the company. Additional concerns were raised by those testifying and submit- ting written comments for the record about the size of the storage pile on the mine site. I believe the record indicates representatives of NCEC assured the Board of County Commissioners that coal would regularly be hauled to the Lacey load -out, thus reducing the need to store coal at the mine site. In order to alleviate theses concerns of surrounding property owners, and in order to be assured the applicant would adhere to its representations concerning the storage of coal and where and how it would be loaded onto rail cars, my clients believe the Board of County Commissioners adopted conditions 2(C) and 2(J). The Board wanted to be assured that only the Lacey load -out would be used to service the coal mine, and that the Lacey load -out would be permitted and in place prior to the opening of the mine. I recognize that at the time of the hearings, NCEC had one application for both the load -out facility and the mine facility pending before the MLRB. I also distinctly remember that Dave Sturges assured the Board both permits would be granted. However, Greg McKennis, in his oral and written comments introduced into evidence, put into question whether or not the Lacey load -out would indeed be permitted. Although not admitted into evidence, Exhibit N, a letter from the Office of Surface Mining, was offered to show the Lacey load- out would likely not be permitted. See also, Exhibits AW, AX, and AY. Thus, my clients believe the Board of County Commissioners was fully aware that NCEC might very well not receive a permit for the Lacey load -out simultaneously with the permit for the mine facility. Nevertheless, the Board adopted as a condition of permit approval that all permits from other governmental agencies be acquired for the proposed special uses prior to the issuance of any special use permits. If the Board of County Commissioners has now adopted a position contrary to my clients' position as stated in this letter, and if the Board intends to issue a special use permit to NCEC for the mine facility only prior to NCEC's acquisition of the necessary permit from MLRB for the Lacey load -out facility, I would very much appreciate it if you would notify me of these facts as :coon as possible. My clients would like to resolve this issue on an amicable basis without the necessity of yet further litigation. Moreover, as z have indicated to you on several occasions, if the County adopts the position stated in this letter concerning Section 2(J), and if the County prevails in NCEC's action against the Board of County Commis- sioners, my clients will happily dismiss their Rule 106 action against Mr. bon K. DeFord March 18, 1991 Page 3 the Board. Believe it or not, the last thing my clients desire to do it to instigate more litigation and increase the level of apparent animosity between them and member:- of the Board. Nevertheless, my clients do believe the language of Condition 2(J) could not be clearer and is subject to only one reasonable interpretation, as stated in this letter. Thank you very much for your cooperation regarding this matter. By EP.; : dkn XC: Greg McKennis Yours truly, CARTER & SANDS, P.C. r • MAR 11991 1J I, l'.STATE OF COLORADO MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 February 25, 1991 Mr. Mark Bean Garfield County Director of Regulatory Services 109 8th Street, Suite 303 Glenwood Springs, CO 81602 Re: Coal Ridge NO. 1 Mine (C-84-065), Technical Revision 6 Dear Mr. Bean: Roy Romer. Governor Fred R. Banta, Division Director The Division is currently reviewing a revision to New Castle Energy Corporation's mining and reclamation permit which incorporates an existing water supply pipeline into the permit. A 25 -foot wide corridor which crosses County Road 335, extending from near the mine entrance north to the Colorado River, is being added to the permit area. The 2 -inch steel pipeline currently passes through a culvert under the county road, however New Castle has committed to rerouting or burying the pipeline when they perform the road work stipulated by the Garfield County Commissioners in Resolution No. 90-083. The Division would appreciate any comments that you or your staff might have on this arrangement. Sincerely, %f William B. Crick Reclamation Specialist WBC/ern CC: Mike Savage, MLRD 3637F 41A) \(!ittri)).(iN- • STATE OF COLORADO MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 303 866-3567 FAX: 303 832-8106 January 25, 1991 Garfield County Commissioners 109 8th Street, Suite 200 Glenwood Springs, CO 81602 Dear Garfield County Commissioners „rr,li,,I;.;i,: 6 FEB 1 1991 1,3 6P,RHL.LD COUNT( Roy Romer, Governor Fred R. Banta, Division Director Pursuant to Title 34, Article 35, Paragraph 3, of the Colorado Revised Statutes, the Mined Land Reclamation Division hereby issues notice that on January 24, 1991, a technical revision application for a permit to conduct coal mining operations, File No. C-84-065 (TR - 06), by New Castle Energy Corporation, 7476 E. Arkansas Avenue - #104, Denver, CO 80237, was deemed complete for the purposes of filing. All reviews and comment periods as provided in the Act and Regulations promulgated thereunder initiate from this day of filing. The applicant proposes to revise underground coal mining operations in Section 6, Township 6 South, Range 90 West. The revision proposes to add a small strip of land, located between County Road 335 and the Colorado River, to the permit area. The revision also incorporates an existing water supply pipeline into the permit. The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Storm King Mountain. A copy of the technical revision application is available for public inspection at the Garfield County Courthouse, 109 8th Street - Suite 200, Glenwood Springs, CO 81601. Written comments may be submitted and additional information may be obtained from the Mined Land Reclamation Division, Room 215, 1313 Sherman Street, Denver, Colorado 80203, (303) 866-3567. Sincerely, Aif) William B. Crick Reclamation Specialist cc: Mike Savage, MLRD 0779G • STATE COLORADO DEPARTMENT OF HEALTH AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) 3314576 DEC,8„tPLORADO 1` 1990P: { Gh 'O VELU Lu ivy lj EMISSION PERMIT PERMIT NO: 90GA253 DATE. ISSUED: NOVEMBER 19, 1990 ISSUED TO: MEW CASTLE ENERGY CORPORATION INITIAL APPROVAL FINAL APPROVAL pci • 1 s 76 THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Coal storage facility located in the Clough Industrial Park, south of 1-70, Lacy, Garfield County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Coal hauling, dumping, storage, and rail car loadout. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR QUALITY CONTROL ACT C.R.S. (25-7-101 et seq), TO THOSE GENERAL TERMS AND CONDITIONS SET FORTH ON THE REVERSE SIDE OF THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: 1. The Fugitive Particulate Ejnission Control Measures listed on the attached page (as proposed in the Fugitive Particulate Fjaission Control Plan submitted to the Division) shall be applied to the fugitive particulate emission.producing sources as required by Regulation No.1. M ...continued 880/79/01 tt(J6/(( • RECEIVED DEC 1 0 I9Y0 Co..lNot of HsaIth Graf Jot 0111.24) NEW CASTLE E11EfdGY OGRICATUTIGN Emission Permit No. 90GA253 Initial Approval Page 2 2. The Division's approval of the proposed control plan is based on the submitted production level as listed below. Prior to any increase in daily or annual production rates, the applicant shall submit a Revised Air Pollution Daission Notice and Control Plan which will be subject to Division review and approval to ensure compliance with the National Ambient Air Quality Standards for particulate matter. Annual records of the actual production rate shall be maintained by the applicant and made available to the Division for inspection upon request. Coal handling shall not exceed 500 tons/hour or 880,000 tons/year. 3. Construction of this source must commence within 18 months of initial approval permit issuance or within 18 months of the start -up -date stated in the application. If commencement does not occur within the stated time the permit wi11 expire on MAY 19, 1992. (See General Condition No. 6., Item 1 on the reverse side of the first page of this permit) . By: Review Engineer Tam Tistinic P/90/dle By: J./ear,- James S. Geier, P.E., Chief New Source Review Section Stationary Sources Program Air Pollution Control Division 0 NEW CASTLE E DIRGY OORMRATION Emission Permit No. 90GA253 Ini tial Approval FLCITIVE PARTIalLATE HlISSIa is CaVTROL PLAN THE FOLLOWING FUGITIVE PARTICULATE EMISSIONS CONTROL MEASURES SHALL BE USED FC»? EN.TORCE`iE7VT PURPOSES ON THE' SOURCES UOVERED BY THIS PEWIT, AS REQUIRED BY THE AIR QUALITY QGW'1ROL CONISSIAW REGULATION NO. 1. This source is subject to no off -property transport and 20% opacity guidelines of fugitive emission limitations of Regulation No. 1 Sec.III D. The following control plan is designed to limit emissions to comply with regulation requirements. 1. Fugitive emissions from stockpiling coal shall be controlled by water spray (sprinkler system) to maintain a moisture content of 10-12%. 2. Fugitive emissions from loading coal into railcars shall be controlled by water spray and by minimizing drop height. 3. Vehicle speeds on unpaved roadways shall be limited to 10 m.p.h. and this limit shall be posted. 4. After loading, rail cars will be sealed with Latex. 5. This permit for a temporary coal load out facility shall expire upon startup of acti vi ties permitted under 84GA323-9. P HINARY ANALYSIS (ieJiap-ki APPLICANT'S NAME: ()GEC- PERMIT NUMBER: °GZs3 REVIEW ENGINEER: YT DATE: /a2C f' CONTROL ENGINEER: z -G PAGE OF PROJECT DESCRIPTION: SUMMARY OF PROJECT IM u, U /c.oJ),m.N," err -1U ,mGt13Z3-9 c.o,,,. km, (wax.. 199z) SOURCES OF EMISSIONS: S L i,.. -t- t) THROUGHPUTS: 500 �I� 8o,000 t/1?s1 SUMMARY OF EMISSIONS: 2 u'/ a' — /` nm r 6 SPECIFIC EMISSION STANDARD: f) ., PROPOSED CONTROLS: • SOURCE OF FACTORS: ,29 - Z MODEL: RESULTS: SOURCE: 4 ug/m3 at 0,25 Kms AVERAGING TIME 2 �^ BACKGROUND: 9 0 SOURCE OF BACKGROUND DATA I Skn�Y TOTAL: I3 1 ATTAI`MEN NON -ATTAINMENT - FOR: RAC T ug/m3 1J G E Kt utIgulI o-r ` 1 G,A3Z3 -9 5061;2,53 • 1 j e5 i\L 0. Axi'...h U.4,0 o�xn Nl�n Ace, -4 &-X-Oc 5 coo .....4- o 70 a 2 xi b c// -fin s ,;Doo it.„„/r G I d, c7., .+o y DL 0,-(3D .k S� n`,"^`-- 10 -12 i FP -12 t.C1-2 5.1924-x _ 4.8 2 c. A�.9 (w 85`70 c. i - ,Y,�a jce I .62 o -w_ FE L t Cotio g• c 0,4 Ail4 )= 3.5 a", $.. 9 >! x20004^ ��) = 5.4 .1 J1.3 W/ki _ (x.35 C 5 2 ) 0 6o !lb- _ AYtA WV? (15)=(5.0.60 Ur /o.B7 3 urU� T d (kms, d. ) "* pM%o F . = 0.0051 (,)5 = / 6. /3 ,1,u /v rnT X 0,15— / 2.73 .th-/U MT $�a000 x x p.2 _ 8533 k /2.23 _ 60, Gi/r.,/7, wwc C,4.6cg / K 25 (NO, Q to -_ _ /5. a 7 _ /5.2 = Z1.0 Ur /,1.., o—D 2 9.0 kr,m / — 9 .,. a, , �.-�., ,r., inr. ,;. <IL CO' Q %,,,. (J :k (sici) _0 /E. / /k. /L / 14 4501 -2.Z loo ac.•..o 90 44 auk / 3q r=i6 A 3 3 -9 A323- Z 00 m 0 c r 0 r1n _ O Z Q o 0 C C r*� 0 r cD D Z .Z7 O as W V-7 z z w 0 z 0 0 z ri En New Castle Energy Corporation Nav C, 191)0 Savoie Excavating 1181 Grand Street Silt, CO Dear Mr. Savoie: New Castle Energy Corpction (NCC) will be filinq for bankruptcy by the and of this month. Prior to filing, the com- pany is attempting to settle all of its existing trade creditor obligations. .i:!e have been able to raise a limited amount of funds and we are not able to settle all of the accounts at their face value, but only at a discount. All creditors have been offered the same percentage of their claims. 1.4 At the present time 1CC is able to offer vou $ o f: Lor vour outstanding claim. To receive payment, you must sign the enclosed Release of Claim and send it to John C. F3lailey, E. at Sherman & Iloward in thc, c2lf addr(=ed envelope enclosed herewith. Upon receipt of the proi)arly executed release form, Mr. Smiley will forward to your attention a cashier's check in the appropiate amount. Also, please return the original Promissary Note to filr. Smiley together with the executed release form. In case vou cannot lo- cate the original note, please sign the affidavit as shown below. Thank you for your consideration. Sincoriy, d4e' E. Peter Eatthics • hereby ackowledge there was a Promissary Notc, between and New Castle Energy Corporation, but cannot be located. T. hereby acknowledge and represent that this note is cancelled by my acceptance of the above cJescr settlement. ny: New Castle Energy Corporation • 9137 East Mineral Circle • Englewood, CO 80112 • (303) 792-2625 0947/90 15:.02 f2303 83(1653 WILLIAM GRANT PETER J. GROUSE .JOHN N. LJAHL. ▪ ALBERT QEfALO DONALD M. BURKHARDT SAIL E. OPPENNEER DONALD 9 GENTRY K rITM TEMPEL JAMES E. BROWN PATRICK A. GRANT JULIA O. ROBINSON WALTER J. DOWNING MICNAGL S. RENNICH J IJ6ITH 6. JUDD DAVID S. HARMON OMB C NORTH • GRANT, McHENDRIE, HAINES AND CROUSE PR Ore69IONAL CORPORAriQN ATTORNEYS AND COUNSELORS AT LAW ONE UNITED QANK CENTER 1700 LINCOLN STREET, SUITE 3000 DENVER, COLORADO 80203-1088 TELEPHONE (.303) 83Z-7$00 TELECORIER (303).63Q-2394 September 17, 1990 VIA FAX TO 9.4S-7712 fcWo Greg McKennis) Don DeFord, Esq. Garfield County Attorney Re: New Castle Energy Corporation Dear Don: R1002/004 LINDA L. 815HOP MICHAEL W. CALLAHAN GYNTNIA J. MCLtAN MARK N. THCHETTER WILLIAM R; KELSO JEREMY R COH,GN PAMELA C. BROWN O► COVNacL DOUGLAS MCHCNDR,G CHARLES H. HAINES, JR. (1914-1988) Pursuant to our telephone conversation late last week, I write to set forth concerns 1 have in light of the anticipated bankruptcy of New Castle Energy Corporation (NCEC). While I agree with J. Smiley's conclusion in his September 10, 1990, letter to you that the automatic stay imposed by 11 U.S.C. §362 would not prevent the County from enforcing a special use permit given NCEC, I don't believe this is dispositive of all questions. To begin with, even if the automatic stay does not prevent the County from enforcing the provisions of any Special Use Permit, the Debtor could easily seek special injunctive relief under 11 U.S.C. *105 to prevent the County from enforcing the Special Use Permit. Under these circumstances, the Debtor would argue that literal enforcement of the Special Use Permit frustrates the "fresh start" purposes of the Debtor's Chapter 11 filing. As the Court stated In Re Kaiser Steel Corp,, 87 B.R. 662 (Bkrtcy. D. Colo. 1988), "Enforcement actions by Utah may effectively place in jeopardy the fresh start which the debtor would hope to achieve by way of its reorganization plan. If so, the debtor may have a remedy under the injunctive provisions of 11 U.S.C. $105 ... Thus, in a properly commenced and prosecuted adversary proceeding, this court can consider whether the purported enforcement of police or regulatory powers by Utah is violative of the broad policies of the bankruptcy code." N., at 666. Although the County could seek a pre -filing waiver of this position from NCEC, there is substantial doubt as to whether such an agreement would be enforceable. As we discussed on the telephone last week, I am particularly concerned that NCEC's rights under the executory contracts section of the Bankruptcy Code (11 U.S.C. *365) could jeopardize the County's position in a number of different ways. First, as noted in Mr. Smiley's September 13, 1990, letter to you, pursuant to *365 of the Bankruptcy Code, NCEC would have the right to reject any sublease with NCIG Financial, Inc. ("NCIG"). If any financial security posted by NCIG for the County's benefit is contingent on NCIG maintaining a relationship with NCEC (e.g., the sublease Don DeFord, Esq. September 17, 1990 Page 2 remaining in place), NCEC may have the power to avoid such a relationship under §365 of the Code thereby jeopardizing the financial security being posted by NCIG. Furthermore, if the Special Use Permit issued by the County was construed an executory contract within the meaning of §365 of the Code, it, too, could be rejected by the Debtor. The courts have held that an executory contract is one in which the obligations of both the bankrupt and the other party to the contract are so far unperformed that failure of either to complete performance would constitute a material breach excusing the performance of the other. In Re Government Securities Corp, 111 B.R. 1007 (Bkrtcy. S. D. Fla. 1990), citing Countryman, Executory Contracts in Bankruptcy. Part I, 57 Minn. L. Rev. 439 (1973). Being so new to this case, I am unfamiliar with the precise terms of the contemplated Special Use Permit, and therefore have no opinion as to whether or not it would fall within the foregoing definition. If any Special Use Permit were deemed an executory contract under §365, the County's ability to enforce the terms of the Special Use Permit would be severely limited. Moreover, even if the Special Use Permit were not an executory contract, any claim the County had for violation of the Special Use Permit prior to the filing of bankruptcy would simply constitute another pre- petition bankruptcy claim, to be dealt with by the Debtor in the regular course of the bankruptcy. In Re Kaiser Steel, supra, Although letters of credit posted by a third party financial institution for a debtor's benefit are not considered property of the estate, and can therefore be drawn down if necessary even after the debtor files bankruptcy, this, in and of itself, does not guarantee the County access to its security. As 1 told you, I am personally aware of a large bankruptcy (that of the SilverCreek resort located in Grand County), in which the County had numerous letters of credit to secure the performance of subdivision improvement agreements, the proceeds of which were unavailable to the County due to the failure of the issuing institutions. Therefore, even if irrevocable and unconditional letters of credit are to be issued by a commercial bank, the County needs to make a thorough investigation as to the issuing institution's financial solvency. If the letters of credit are runything but irrevocable and unconditional (e.g., if they are conditioned on either the issuing institution's or another entity's relationship with the Debtor) they may be subject to withdrawal if the Debtor rejects the relationship pursuant to 11 U.S.C. §365. Similarly, if the financial security posted on NCEC's behalf is conditional on the issuing entity's security position vis-a-vis NCEC's assets, that security position can be preempted in NCEC's bankruptcy pursuant to the provisions of 11 U.S.C. §364(d). This provision of the Bankruptcy Code authorizes the Bankruptcy Court, after notice and hearing, to authorize the obtaining of credit or the incurring of debts secured by a "super -priority" lien against the Debtor's property, which takes precedence over all existing security interests therein, Don DeFord, Esq. September 17, 1990 Page 3 1 am uncertain as to exactly what form of security NCEC has proposed to secure its obligations to the County. If they are satisfied by NCECs posting of a bond, that bond could be construed as property of the estate. In Re Wegner Farms, 49 B.R. 440 (Bkrtcy. N. D. Iowa 1985), and therefore recovery on the bond would be stayed by 11 U.S.C. §362. Moreover, it is possible that the bond could be viewed as a financial accommodation under 11 U.S.C. §365(c) and (e). In Wegner, the Court said: The Court concludes the bond is a financial accommodation within the meaning of section 365(c) and (e). As such it cannot be assumed by debtor and can be terminated by [the bonding company] because of Debtor's bankruptcy. U., at 444. In addition to the foregoing, I have grave concerns as to the mechanism through which NCEC intends to fund its ongoing operations after its Chapter 11 filing. According to my experience, the biggest single problem facing all Chapter 11 debtors is the lack of working capital at the time they file. As discussed above, even if NCEC has a line of credit arranged with NCIG, it is possible that either NCEC or NCIG could terminate the line of credit under §365, While I do not have any exact statistics, 1 have read in the past that only six percent of all Chapter 11 cases result in a confirmed plan. Furthermore, confirmation of a plan is not a guarantee of success. In many, many Chapter 11 cases in which a plan is confirmed, the debtor is nonetheless unable to perform the terms of the plan, thereafter resulting in either conversion of the case to Chapter 7, or, even more likely, dismissal, because there are no assets available for unsecured creditors. For all these reasons, I feel that the County's position is subject to substantial risk in the event that. NCEC files a Chapter 11 petition. Even if these risks do not come to fruition, my experience dictates that all persons and entities associated with a Chapter 11 debtor become ensnared in the bankruptcy proceedings and their corresponding delays and costs. Thank you for- your time and consideration. Please let me know if I can be of any further assistance. JEB:me trni 454:MQC-MINEDIIP SCNMUESER GOR EYER INC. 1 rand Avenue, Suite 2-E GI ., ood Springs, Colorado 81601 (303) 945-1004 (303) 925-6501 Fax (303) 945-5948 CONSULTING ENGINEERS & SURVEYORS/ PAVEMENT DESIGN The purpose of this report is to provide accepted design criteria to derive a pavement section that will withstand the proposed loadings from the New Castle Energy Mine site, as well as the existing and pro- posed traffic from the Riverbend area. The design includes that portion of County Fuad 335 from the I-70. over- pass to the New Castle Energy Mine access road. The design procedure for the pavement section is derived from the Colorado Department of Highways Roadway Design Manual revised in March, 1988. The Colorado Department of Highways' procedure is derived from the 1986 AASHTD Guide For Design of Pavement Structures. The elements to be considered in the design of flexible pavements con- sist of the following: 1. Traffic analysis. 2. Expected serviceability loss over the design period. 3. Drainage characteristic of the granular base course material. 4. Evaluation of subgrade in terms of resilient modulus. 5. Realiability component that incorporates a risk reduction factor. 6. Overall deviation. The traffic analysis requires the conversion of all traffic loads to the equivalent of 18 KIP or 18,000 pound load per axle. The traffic loads projected on this seciton of road are as follows: One hundred round trips for a loaded coal truck, which are assumed to be a 5 -axle, 80,000 pound maximum vehicle weight. We then assumed 100 homes in the Riverbend area, each generating four trips per day. Of that total, approximately 10% were projected as pickup trucks with remainder being automobiles. The ESLA, or equivalent single -axle load, results in a factor of 5,811. i • We then undertook a field investigation to determine the strength of the existing subgrade on County load 335. Attached is the report from Chen -Northern, Inc. The conclusion of that report indicates an R -value of 39 for the combined strength of the five to seven inches of 3/4" road base, and the five inches to 1-1/2 foot of manmade subgrade material. The design period used was twenty years. The resultant pavement section is four inches of asphaltic base course over eight inches of base course material. Because the existing road contains approximately five to seven inches of 3/4" base material, we would propose to add two inches of 3/4" base course on top of the existing gravel surface and overlay that with four inches of asphaltic pavement. • 'Chen@Northern, Inc. July 31, 1990 Schmueser Gordon Meyer Inc. Attn: Louis Meyer 1001 Grand Avenue, Suite 2-E Glenwood Springs CO 81601-3642 • ConsulIng Fng,neers and Screnhsls 5080 Road 154 Glenwood Spnngs. Colorado 81601 303 945 7458 303 945-2363 Facsimile Subject: Subsoil Study and Laboratory Testing for Pavement Design, County Road 335, to New Castle Energy Mine, Garfield County, Colorado. Job No. 4 483 90 Gentlemen: As requested, Chen -Northern Inc. performed a subsoil study and laboratory testing for pavement design of approximately 7000 feet of County Road 335 from near the I-70 overpass to the New Castle Energy Mine access road. The scope of work for the study was discussed with Louis Meyer. On July 25, 1990, four shallow exploratory borings were drilled and sampled along the subject section of roadway. Lags of the borings, including approxi- mate location are provided on Figs. 1 and 2. The subsoils encountered below about 4 inches to 7 inches of road base gravel consisted of about 1 to 5 feet of man -placed fill overlying natural clays and gravels. Samples obtained consisted of standard penetration (SPI') drives and disturbed bulk. Results of a Hveem "R" value determination performed on the combined bulk samples from each boring, shown on Fig. 3, indicate an "R" value of 39. Gradation analysis and liquid and plastic limits tests performed on the sample (minus 3/4 -inch fraction) are shown on Fig. 4. It is possible the subsoil conditions could change between the relatively wide spacing of the borings. However, based on the observed site conditions and the geology of the area, this appears remote. During construction, we should observe the exposed subgrade to evaluate the condition for pavement support. If you have any questions or if we can be of further service, please call. Sincerely, CHEN-NORTHERN, INC. ; 15222 t DAY/ec •" •: `` ���• c Rev. By: SLP Attachments n member of the (riIII Orouliol cornpanies job No. • 4 483 90 • Datum None Excavation Equipment 4" diameter auger LOG OF E.RATORY HOLES Prepared BY D. Young/C-N., Inc. Reviewed Dy S. Pawlak/C-N., Inc. Date 7-23-90 Date 7-31-90 Hole No.. B-1 Elevation to depth Location Garfield County Road 335; 800' east of pavement, 8' North of centerline Hole No. Location B-2 Garfield of pavement, Class. Elevation to depth County Road 335, 2200' east 5' North of centerline Description of Materials Depth. Ft. Class. Description of Materials Depth. Ft. 0-5" Fill man -placed 3/4" and 1 'h" base course material. 0-7" Fill Man -placed 3/4" and 1'h" base course material. 5"-1'h' Fill Man -placed on-site material consisting of sandy gravelly clay, firm, slightly moist, dark brown, probable cobbles. 7"-5' Fill Man -placed on-site material consisting of sandy gravelly clay, scattered cobbles, firm, slighlty moist, dark to medium brown, some coal fragments. 1'h'-5' CL -GC Gravelly clay with cobbles, probable boulders, sandy, stiff, slighlty moist, grey - brown. Samples: Samples: 1' SPT* 1 SPT 14/12" 11/12" 4' SPT 9/12" 4' SPT 10/12" . 1,-4' Bulk 1- 4' Bulk No water encountered. No water encountered. *SPT = Standard penetration test. Fig. 1 ob No. 4 483 90 Datum None Excavation Equipment 4" solid auger LOG OP II •RATORY HOLES Prepared By D. Young/C—N., Inc. Reviewed Cay S. Pawlak/C-N. , Inc. Date 7-23-90 Date 7-31-90 Hole No.. B-3 Elevation to depth Location Garfield County Road 335, 4000' East of pavement; 10' North of centerline Hole No. B-4 Elevation to depth Location Garfield County, 5700' East of pavement; 5' North of centerline Depth, Ft. Class. Description of Materials Depth. Ft. Class. Description of materials 0-6" Fill Man -placed 3/4" and 1 1/2" base course material. 0-4" Fill Man -placed 3/4" base course. 4"-3'-z' Fill Man -placed on-site material 6"-1'-z' Fill Man -placed on-site material consisting of sandy gravelly clay, firm, slightly moist, dark brown: consisting of sandy gravelly clay with cobbles, firm, slightly moist, dark to medium brown. 1-'-5' CL -GC Gravel and Cobbles with Boulders; clayey to very clayey, sandy, medium dense to dense, slightly moist, light brown. 3'-z'-5' CL -GC Gravelly clay with cobbles, sandy, very stiff to hard, slightly moist, mixed brown. Samples: Samples: 1' SPT* 32/12" 1' SPT 11/12" 4' SPT 10/6",10/0" 4 SPT 35/12" . 1'-4' Bulk 1-4' Bulk No water encountered. No water encountered *SPT = standard penetration test. Fig. 2 TEST, SPECIMEN 1 2 3 4 MOISTURE CONTENT 14 13 12 DENSITY (pcf) 118 121 122 R—VALUE / EXUDATI❑N PRESSURE 207/25 318/41 462/56 300/39 100 90 80 70 60 w Q 50 40 30 20 10 0 100 200 300 400 500 600 700 1100 EXUDATI❑N PRESSURE (psi) S❑IL TYPE sandy gravelly clay L❑CATION combined sample from 0-1, 0-2, B-3, and 0-4 GRAVEL 11 % SAND 36 % SILT AND CLAY 53 y, LIQUID LIMIT 29 % PLASTICTY INDEX 13 4 483 90 ChenONortherrr, Inc. HVEEM STABIL❑METER TEST RESULTS Fig. 3 7 .0/4 .149 DIAMETER 0 HYDROMEI 01 ANALYSIS TIME READINGS • SIEVE ANALYSIS U S. STANDARD SERIES 24 1-111. 7 HR. I • 10 45 MIN 15 MIN. 60 MIN. 19 14/1I4.4 MIN. 1 MIN. '200 '100 '50 440 '30 '16 1.9 100 90 80 70 z zso a 1- 50 z w (-) 40 w u 30 20 10 W 1 .002 .005 .009 .019 .03 CLEAR SQUARE OPENINGS I 1'h" 5" 6" 8- 0 { 1_ i { J J r TIT S—f 11 I 1 1 I 1 CLAY TO SILT T .297 .590 1.19 2.38 4.76 9.52 .42 2.0 F PARTICLE IN MILLIMETERS —1--T-4 1 I 1 I SAND FINE 1 MEDIUM 'COARSE GRAVEL 11 SAND 36 % I I 1 11711 1 19.1 38.1 , 76.2 127 20600 152 10 20 30 0 w 40 Z 50¢ 4- 80 60 ¢ w 70 60 90 GRAVEL FINE 1 COARSE COBBLES SILT AND CLAY 53 % LIOUID LIMIT 29 % PLASTICITY INDEX 13 % SAMPLE OF sandy gravelly clay HYDROMETER ANALYSIS I IME READINGS 24 HH. 7 HR. 45 MIN.15 MIN. 60 MIN. 19 MIN.4 MIN. 1 MIN. 100 90 80 70 Z 60 u) 0 a50 Z 2 40 30 20 10 0 .001 .002 FROM B-1, B-2, B-3 and B-4 combined SIEVE ANALYSIS U.S. STANDA11D SEIIIES I 0 CLEAR SQUARE OPENINGS •200 '100 •50 '40 '30 '16 •11, 8 '4 %" I—'— I�_ r E } 1 L_. I r1 I 1 1 1 1 1 1 111 1 1 il-TIT .005 .009 .049 .037 .0/4 .149 .297 590 1.19 12.38 4./6 .42 2.0 DIAMETER OF PARTICLE IN MILLIMETERS CLAY TO SILT 1 SAND 9.52 19.1 38.1 GRAVEL 0 10 20 30 0 40Z w SO¢ 1- z 600 0 70 60 90 100 76.2 127 200 FINE 4 483 90 GRAVEL LIQUID LIMIT SAMPLE OF SAND Chcn@Northern,Inc. MEDIUM 1COAIISE SILT AND CLAY PLASTICITY INDEX FROM FINE 1 COARSE 152 COBBLES GRADATION TEST RESULTS Fig. 4 SCHMUESER GORDOPTMEYER INC. 14rand Avenue, Suite 2-E Glenwood Springs, Colorado 81601 (303) 945-1004 (303) 925-6501 Fax (303) 945-5948 CONSULTING ENGINEERS & SURVEYORS/ WASTEWATER AND SEPTIC WASTE The purpose of this report is to discuss, on a conceptual basis, the required wastewater treatment for the mine domestic sewage. This report does not cover the process water generation for the mine site nor any storm water related issues. At full buildout in 1993, the mine will employ 125 workers. It is expected that 35 people will be employed in 1990, 35-75 people in 1991, and 75-100 people in 1992. The conceptual design included in this report assumes the ultimate buildout of 125 workers. Each mine worker will generate 35 gallons per day (gpd) of wastewater according to accepted engineering design. The design of the wastewater treatment facility will incorporate the environmentally sound practice of separating grey water and black water wastewater. Grey water is defined as the water generated from lavator— ies, showers, sinks, etc., and does not have the high BOD associated with black water. Black water is that wastewater generated from toilets. The grey water contribution per worker will be 25 gpd, while the black water contribution will be 10 gpd. The total grey water contribution, assuming 125 workers, is 3125 gpd. Total black water contribution will be 1250 gpd. These flows are average daily flows. The design of the facilities will be based upon the maximum daily flow, which is assumed at 150% of the average daily flow. Therefore, the engineering design will be based on 1875 gpd black water and 4687 gpd grey water. The plumbing facilities at the mine site will consist of grey water and black water plumbing. The grey water will be directed to a large septic tank or series of septic tanks that will remove much of the inorganic solids. The grey water will then be used as irrigation water during the non -irrigation season. It is estimated that, during the first full growing season, the total application rate of irrigation water will be approximately 4800 at 5000 gpd. Therefore, the entire • • volume of the maximum daily flow grey water will be utilized through irrigation.practices. The mine will only utilize biodegradable soaps in the showers that are conducive to the landscaping operation. During the non -irrigation season, the grey water will be utilized in dust prevention on roads and to contribute to the mine process water. The hydraulic mining concepts for the mine consist of circulating approximately 2400 gallons per minute (gpm). The grey water would contribute approximately one-tenth of one percent in an instantaneous basis to the recirculated process water. The consumptive use of the mining process will be approximately 300 acre-feet per year. Thence, the grey water contribution will result in approximately 13% of the consumptive use for the process process. Any wastewater treatment facility over 2000 gpd will require both a site application and discharge permit through the Colorado Department of Health. Because we are proposing a land application method, the discharge permit will be obtained specifically for land application, not to a discharge to State waters. Therefore, there will be no degradation whatsoever of State waters due to the grey water generated from the mine. The black water generated from the mine site will be directed to a large holding tank. This holding tank will then be pumped periodically by a private pumping firm. It is anticipated that an individual sewage disposal system (ISDS) consisting of either a conventional absorption system, mound system or evapotranspiration (ET) system, will be con- structed in the future to treat the black water generated from the mine. Because the black water generated at full buildout (125 workers) is less than 2000 gpd, a permit will not be required from the Colorado Department of Health. • NEW CASTLE ENERGY CORPORATION RIDGE #1 SURFACE FACILITIES NEW CASTLE, COLORADO LANDSCAPE PLANTING SCHEDULE Symbol Qty. Description Deciduous Trees Size Condition LC 155 Lanceleaf Cottonwood 8-10' B & B (Populus acuminata) RC 53 Robusta Cottonwood 8-10' B & B (Populus robusta) RO 21 Russian Olive 6-8' B & B (Elaeagnus angustifolia) Evergreen Trees S 21 Colorado Blue Spruce 8-10' B & B (Picea pungens) Total 250 NOTE: All trees listed here and shown on the drawing labeled Landscape Plan shall be irrigated by means of a drip irrigation system. • • Activated Air Audio Engineering "A Sound Company, 1005 Colorado Ave. Glenwood Springs, CO 81601 1-303-945-9873 Louis Meyer Schmueser Gordon Meyer Inc. 1512 Grand Ave Suite 212 Glenwood Sprgs, Co. 81601 Ref: Noise Measurement for NCEC Dear Louis, Incident Noise Measurement readings were taken on monday evening July 30th at the NCEC coal ridge #1 mine and ambientnoise measurements recorded tuesday evening July 31st. I have enclosed copies of the readings from noise source truck loader), (2) Sub -Division, and (3) point B - the N Also enclosed is a chart 3.8 ( typical sound level meter). taken, (1) Noise Incidence - 3ft to 15 ft point A - the first residence of River Bend Nur,- north of the mine and across 1-70. A weighted sound levels as measured with a All readings were read in the A -weighted scale with a precision sound level meter ( B&K 2230) calibrated on site before each test. The outdoor environment can often be classified as a Free Field. A sound field is said to be a free field if it is uniform, free from boundries, and undisturbed by other sound sources. When encountering a free field the Inverse -Square -Law rate of level change comes into effect.(the geometric spreading of sound from a coherent source) This change in level is 6dB for each doubling of distance for a spherical expansion from a point source. A simple rule of thumb dictates that when a change of +10dB occurs, the higher level will be subjectively judged as approximately twice as loud as the level 10dB below it. While computing loudness is more complex than this, the rule is useful for mid-range sound. The sound at 100ft is half as loud as that at 30ft, the sound at 30ft is half as loud as the sound at 10f t. When calculating the Lp ( sound pressure level ) of adding another truck at 90dB, doubling the acoustic power, will result in only a 3dB increase at the source point and have little effect on the areas under consideration. Showing concern Mr. Matthies explained the planting of future trees along the truck path. With the additional absorbtion, refraction and deflection of the sound source I believe that the SPL difference should have little impact on the surrounding neighborhoods ambient noise levels. I will make myself available August 15th to answer any questions the P&Z might have. Sincere' H. Edward Ware A: A. Audio Engine, AT A GIVEN DISTANCE DECIBELS FROM NOISE SOURCE re: 20pN1m2 1 ENVIRONMENTAL 140 50 HD SIREN (100 ft) 130 JET TAKEOFF (200 ft) 120 RIVETING MACHINE' 110 CASTING SHAKEOUT AREA 100 ELECTRIC FURNACE AREA TEXTILE WEAVING PLANT' SUBWAY TRAIN (20 fl) 90 80 70 NEAR FREEWAY (AUTO TRAFFIC) 60 LARGE STORE ACCOUNTING OFFICE PRIVATE BUSINESS OFFICE 50 LIGHT TRAFFIC (100 ft) AVERAGE RESIDENCE MINIMUM LEVELS—RESIDENTIAL 40 AREAS IN CHICAGO AT NIGHT CUTOFF SAW' PNEUMATIC PEEN HAMMER' PNEUMATIC DRILL (50 11) FREIGHT TRAIN (100 ft) VACUUM CLEANER (10 11) SPEECH (1 11) LARGE TRANSFORMER (200 ft) SOFT WHISPER (5 ft) THRESHOLD OF HEARING YOUTHS — 1000 to 4000 Hz 'Operator position BOILER ROOM PRINTING PRESS PLANT TABULATING ROOM INSIDE SPORT CAR (50 mph) 30 STUDIO (SPEECH) 20 10 0 STUDIO FOR SOUND PICTURES FIGURE 3-8 Typical A -weighted sound levels as measured with a sound level meter. 'Courtesy GenRad) 1) high .Liss Cut Lif 2) Low Pass Cut (!f;' 3) Physical Meas ureirent„ a) SPL 7 i) l;.ix. 3,.s c) Piiri. Ll /7, 5-- d ) d) Leq '7'%i / 4) Calculated Acostic ;;ain potential at source •y/e)ci()C C,, — )arc? L 5) Subjective response of observer etgci< -USO 110ERN high poi cI1 6l'11 a rJ - 141,4'ci 11 6) Comments C)135er2LrCe /)tcY4Yi 3 - - r 61400-kj 6bcet ii S(X.Q/)TCC 50eC ) Re/2E4 /Ece - "654- SPL 654- SI'L - Sound Pressure Level Max.- Maximum ;;PL of cvc,nt Minimum SPL of event Lcq - Sound Pressure Level average over measurement period 7) :1y:;LI 'omponet:; a) source LOA dee .(r33Jct b) electronics 13 c?.3C c) ;standards 1.E -.C. ct,.eitolI'(4&<, re -c 8041-404, a) :settings - 12015 c_ucf4 • - 46+ Jo.JcucQ 77kzeeiRvc..6 -71,200,A, 50 - loo Egg .:,•14 - aU �- h I- - A ciM I b p2p4-4..0k) flae Con: a iy 4. 4'1- 7-7/0c(1( 2 &.---Gvg Date _ _2o `FO Job S G. in 1) Iligh F1ss Cut Off 2) Low Pass Cut Off 3) Physical Measurements d) I.,eq • 4) Calculated Acostic .tin potential at source 5) Subjective response of observer 6C.c,Cl2--t-Lp ho -L- - (1. l•i p bu ut ( 1/Yl /YYL&-co J-C.cz.t 6) Comments IA(1' 111 31 151'14 6"-=-'C� SPL - Sound Pressure level Max . - Maximum 31'L of event Min.- Minimum SPL of event. Leg - Sound Pressure Level avera,;e over measurement period 7) System Compone ts a) source /c/4c( 1 - b) electronics 63/i ./�5d c) Standards .L G'1 d) :settings /24).5 T mLc w 5-1• - ?As -4- F- 5 s -4- F-✓ — loo c:c'c EsUc_E - 420k - 6.X4.. 71 /I- et,2Fie GG A Naive 26E_'Cey___Ce (-C/1c0.212.. Company e B. AC)4 Date '%-3o -go Job S a& �6c� . 1) high Pass Cut Off 2) Low Pass Cut Off 3) Physical Measurements a) SFL b) Max. c) Min. d) Leq • 1.+:UIL;riC 1' � )c)/;i 4) Calculated Acostic (;In potential at source 5) Subjective response of observer 6) Comments £)1?vr) ek2y /. atke, O/Uy .Scx)N/J 6/;,Y71/- Ct ' c21 -c.0 P_d c74 . 2c - /kY261 AkW - c (E / C' lLE= C". !. ,f /1 71/7E: CioC. -kL) /2 (/ L'.4 SPL - Sound Pressure Level Max.- Maximum ;PL of r:•vcnt Min.- Minimum SPL of event Leq - Sound Pressure Levelavera.e over )measurement Period rt-/ r -- /2J (.-%c �t_ /Akic! SC)%) dbUi r) System Conpone. to a) source /0 /)21;.v. 7;24)c.k A1/21.7)/-6. . vp - k- op -- Y v1/4) cq do (ccu 6Q_LN,40 b) electronics c) Standards re c coY0110) "4K)C d) setting!; - 8219 irn Wy4 - 4454- F5 (J _ �o 9O&)r) ,, )c t' Z sitjc €. - Ey. Le)Ecoil ig. - A 1;;amr'C J�r,2L 61 , company /7')-/i.//Ae19 Date 7 - 30 - Job64/2 Emy 1) High Fess Cut Off 2) Lox Pass Cut (2f:' 3) Physical a) b) Max. • Measurements c) Min. d) Lcq t C(`11.,1, i, 'I ; ,. 1/zeo //a 5r� . 5-4.7 4) Calculated Acostic g.un potential at source 5) Subjective respom t' of oL;cr r 601)0...0.9 6) Comments 7/Vc/ Cllr' 7%>_c)(C:--1V E. , 1) N 4cvtiy -/C 6o0eucj 47,16/6-4 2Esd, ! 1) 2) 3) High Yas s Cut Ot'J• Loin Pass Cut. 017 Physical. Measurements a) SPL b) Max. c) Min. d) Leg 5L65./ 4.) Calculated Acostic gain potential at source 5) Subjective response of observer u R FC8s7 (9-K6 Noi-r L r+Jc)l E; 6) Comments 1 g (,v' E,e -- ck) y9)49 /5 ‘01,7 7f/e�JC /JJ" 4 �s uJ // , s `,,�koiLi-J £_ 4� vs(//),(Ayict '73, oL /> hJ Q e A -r t Ak. 's c'� ��v� eike S/O2 SPL - Max . - Min.- Leq - Sound Pressure Le've1. Maximum SPL of event Minimum SPL of event Sound Pressure Levcl average over. measurement period 7) .;y:; taut Goran(. ne t:, -cj ;;orr:rc;e '%,9-n, /i)'ti%u�, - I3el<k c ,' n%/J c...90( -le u •-t-,o b) electronics I3 Ka2a3d Name c) Standards ..:172c, .61.7;frt,r'r`e4-suc E: c1) :settings 77/71/ T=5-0 So 5cx_ced .TUCCc1(E'tucs -- ?72ott'/r Xf. 7/71 t2 crxo-f Company !)ate Job / (e ;��� � 7_2,4 .."72( f C7) e415 5_G2a- 1) High lass Cut C'ff 2) Low Pass Cut Off 3) 4) Physical Measurements a) SPL b) Max. 6.,•(,c2 c) i•iln. 0 d) Led:)2 /267 I 'f S L '7/.7 Calculated Acoatic 6ain potential at source A Subjective resron se of observer 6) Comments 1120 X412 E 1) �k to �.� c.1lh 6 f • L -bate c aL,t) S5 c uccAl el -U2= c-241 ,C � Ngled fp &/5c/2 ,17-/eicl . SPL - Sound Pressure Level Max.- Maximum SPJ, of event Min.- Minimum SPL of event Leq - Sound Pressure Level average over measurement t;c,y . od • /)/c-Ni)I/I r)1 T_- tic 7) Sy t.em C onpone t 3 a) source &l.»tr j.: -1/2_0cf< Q.cc ri- to ✓n f � _ � -c� A &.v c4 E (Rv to -E c CCM211A1C.t b) electronics, Kz ..S- c) Standards, 1 G d) settings Oe.ff.c'LN,z, -2/715 Naar. Company ;late — d -,F7e Soctio ot itu Kr O('- - Q -000 f-4. _4-Y17 r 7 -go To job S CT Gyle • • /1/10,7174,17 Oiet,-t-.. 1F /c t' 4-J-1 �5�'r.�t-Q ` i' ,,J /3 1) High Pass Cut, i_'.f•i' — . y) ;system liomponets 2) Low Pass Gut Oi•f a) source f-Vnl:)+eti-(- ttic: - 3) Physical Measurements /0 n✓l i iU • a) CPL Jr�•`J b) Max. c) Min. L/'-/ • d) Leq 60+ 4) Calculated Acostic gain potential at source 5) Subjective response of observer 6) Comments AdTWEO1 A/C)/SE / OE SPL - Sound Pressu.re Level ;4a.x.- Maximum SPL of event ]Minimum SPL of event Leq -- Sound Pressure Level ..verae over measurement period b) electronics /v i /i" � 2 3C) c) Standards I E. C d) settings fes4-e9r2 (-G9+ 445-1- P'50 F -Co 5cx)aJ,) uc� uc i2 • ?-t ( '. rZ - c`)÷ 2.�Y. L C. — I4 . Company r 4 - A • U -'u f'0 e'U J Date 2 31 -�0 Job 5 6//11-Ivi9 Z—£'v aJn6i. 0 i1 = Z Z Z DT—Di m Fri /1 - v >0 _7J Z 1- I ^^. 1 0 m � Z 0 Z O Z iZT- 7 P 1 (1) 0 D Z w 0 Z 0 0 Z r z 000 00, " • \ / (n q CO / O p 0 0 p O O O N r Orri / / / / RE -TURN >* InA • z—Z p ain6U OCI V7 D O z 0 z 0 O z DZ z 0 0 0 z 3NIl 3m -r3 NMN 3dOlS NIVW L 0 0 0 0 0 -v U1 0 P.O. BOX 101 G:enwood Springs, Colorado 81602-0101 •110 DAVID R. STURGES ATTORNEY AT LAW Mr. Mark Bean Planning Department Garfield County Courthouse 109 8th Street Glenwood Springs, CO 81601 Dear Mark: Telephone (303) 945-5748 August 14, 1990 RE: New Castle Energy Corporation Special Use Application Based on my discussions with you and Don Deford, it appears there remains some possible misunderstanding in some members of the concerned public whether NCEC's resubmitted SUP application is somehow requesting now that Garfield County preliminarily approve a proposed railroad load -out east of the Riverbend Subdivision or whether by its mere mention or reference in this application without specific request for approval now the County could be judged sometime in the future to have prejudged such a proposal or the County could be estopped from denying such a proposal should it be proposed sometime in the future. This possible misunderstanding arises apparantly from the inadvertant but brief mention of such a railroad loadout location found on the 2nd page and on the page identified as 4-13 , both under Tab 4 of the resubmitted SUP application. While such a viewpoint is inconsistent with the specific approvals requested under Tab 1 and with NCEC's public statements to the P & Z Comission on July 11, 1990, it appears approprite now to request that you accept and submit this letter into the record on this pending SUP application to clarify NCEC's positon on this issue. Specifically, it is NCEC's continued position that it is now requesting only Garfield County's approval of the proposed railroad loadout identified in the application as being located west of Rifle along with its proposed continued coal mining operation. NCEC does not believe the inadvertant but brief and nonspecific references to a possible loadout location on land owned by NCEC east of the Riverbend Subdivision currently found on the pages identified above in the pending SUP application in any way commits or estops any future action by Garfield County to such a proposed activity at such a location should it ever be specifically proposed sometime in the future. To facilitate a clear understanding of this issue, NCEC asks that those two identified references inadvertantly made in this latest submission be deleted. We would be happy to provide you with corrected pages if you think it would be appropriate. • • Lastly, it is NCEC's position that any verbal remarks made by NCEC representatives in public sessions to Garfield County officials, either voluntarily or in response to specific questions from such officials, which in some way reference such a possible future load -out location likewise do not commit or estop any action by Garfield County in the future should such a specific proposal be made. I hope this letter clarifies NCEC's position on this issue. Please advise me if you have any further questions or concerns on this matter and whether you would like me to submit the corrected pages as offered. Thank you for your consideration of this matter. Sincerely, David R. Sturg Attorney for NCEC cc:Don Deford V • • - T STATE OF COLORADO COLORADO DEPARTMENT OF HEALTH 4210 East 11th Avenue Denver, Colorado 80220-3716 Phone (303) 320-8333 March 27, 1990 New Castle Energy Corporation Attn: E. Peter Matthies 7625 East Napa Place Denver, CO 80237 Teletax: 13031 322-9076 (Main BuildineiDenveri (303) 320-1529 (Ptarmigan Place/Denveri (3031 248-7198 (Grand )unction Regional Office RE: Delinquent Discharge Monitoring Report(s) Permit No. CO -0040894 Garfield County Dear Mr. Matthies: 4737 eice. VIS r r'.' Rov Romer Governor Thomas tvI. Vernon..M.D. Executive Director The wastewater permit issued to your facility requires that the discharge from the facility be monitored at specified frequencies and the analytical results be reported to this Department and EPA. The data is to be submitted on Discharge Monitoring Report Form 3320-1. If no discharge occurred, you are required to report "no discharge". This requirement is further defined in the permit under Part I Monitoring and Reporting. Failure to submit the reports constitutes a violation of the permit. A review of our records indicates that we have not received the monthly report(s) for the period(s) of January 1 through January 31, 1990. If your records indicate otherwise, please bring this to our attention so that this matter may be resolved. In the event that you have overlooked this submittal, please provide the report prior to April 6, 1990. If you have any questions, please contact me at 331-4761 Sincerely, Louann Gaines Staff Assistant Permits and Enforcement Section WATER QUALITY CONTROL DIVISION xc: Local Health Department Dick Bowman, D.E., Field Support Section, WQCD MS -3 Files LG/dc 11114.. kitikry