The Rocky Mountain Industrials limestone quarry, seen from Transfer Trail on Sept. 2, 2024. The west or lefthand side of the quarry is off-limits for mining following the January 2023 slope collapse, and new blasting is currently prohibited. Photo by Ginny Minch
State proposes 9x increase in quarry reclamation bond, to $3.2 million
The Colorado Division of Reclamation, Mining and Safety (DRMS) has proposed a nearly nine-fold increase in the reclamation bond to be posted by Rocky Mountain Industrials (RMI) for its limestone quarry.
Since 2019, the quarry’s bond has been $366,179. Because of the massive rockslide that occurred Jan. 18, 2023, DRMS is now proposing a new reclamation bond of up to $3,251,767.
The purpose of the revised bond is if RMI were to abandon the mine, the state and federal governments would have the funds needed to stabilize the slope and reclaim the quarry.
Amy Yeldell, DRMS Environmental Protection Specialist, informed RMI of the proposed bond increase in an Aug. 27 letter. Yeldell and DRMS staffer Travis Marshall met with Citizens’ Alliance board members in a teleconference last week to explain the bond.
“The goal of updating the bond is to get as much money as we can so in case something does happen, we have the money that we need to reclaim the site,” said Yeldell.
Rock bolting only stabilization option within existing permit boundary
A plan to use rock bolting to stabilize the two unstable layers of limestone that loom over the quarry is the primary reason for the proposed cost increase.
Lower portions of the two layers broke off in a spectacular rockslide that occurred Jan. 18, 2023. The slide left an overhanging cliff that has prevented full quarry access and blasting from resuming.
A geotechnical report submitted by RMI in February proposed two alternate methods for stabilizing the overhanging cliff:
- Active stabilization, mining hundreds of feet upward on the slope to the point where the two unstable limestone layers pinch out.
- Mechanical stabilization, sinking six-inch-thick steel rock bolts 35 feet deep in 200 holes across the quarry’s highwall.
Yeldell said DRMS based its proposed increased reclamation bond on the rock bolting option because it can be done within the boundaries of RMI’s current state and federal mining permits.
The active stabilization plan would require drastic permit changes at the state and federal level, and would also be subject to a public review process.
“The Citizens’ Alliance is relieved to see DRMS choose the rock bolting option for reclamation of the quarry,” said Jeff Peterson, President of the Citizens’ Alliance. “The active stabilization option would be no different than RMI’s devastating mine expansion plan. We stand with the Glenwood Springs community in solid opposition to that expansion.”
Proposed bond is an estimate; RMI can present lower bids
DRMS based its estimate for rock bolting on recent cost data from the Colorado Department of Transportation for similar rock bolting work done on McClure Pass near Somerset.
RMI’s geotechnical consultants estimated rock bolting at $960,000. Using CDOT’s actual costs, DRMS estimated the costs for rock bolting the Glenwood Springs quarry could be as high as $1.9 million.
The DRMS letter encourages RMI to obtain three other estimates for rock bolting by Oct. 25.
If the average of RMI’s estimates is lower than the DRMS estimate, DRMS may set a lower bond amount, Yeldell said.
Other elements of reclamation work at the site total an estimated $325,000. Liability insurance, agency supervision, engineering, administration, contractor profit and other indirect costs would add $1 million, adding up to the Aug. 27 estimate of $3.2 million.
Once the bond amount is set, Yeldell will issue a final notice for a new reclamation bond, likely some time in November. RMI will then have 60 days to increase its financial warranty to meet the new bond amount.
RMI can secure its bond through cash, a corporate surety, or a combination of the two. RMI’s current bond is a corporate surety.
Estimated bond includes admin funds for BLM
The U.S. Bureau of Land Management, which leases public lands to RMI for the quarry, is still in process with RMI on a Modified Plan of Operations. That enforcement action began two years ago, and became more urgent after the 2023 rockslide. However, BLM has offered little information this year about its permit enforcement actions.
Since DRMS is collaborating with BLM on quarry regulation, the state agency agreed to make the new reclamation bond a joint pool of funds shared with BLM. The proposed bond includes percentage increases to cover BLM’s administrative costs related to proposed reclamation actions.
Yeldell emphasized that none of the reclamation measures listed in the proposed bond letter are required or would be allowed at this point in time.
Reclamation measures would be carried out by RMI and its contractors if RMI chooses to close the quarry, or by the state and its contractors if RMI were to abandon the quarry.
“It’s too early to say what option RMI would want to do,” Yeldell said. If the mining company were to win approvals for the mine expansion, she said, it would incorporate the active stabilization work into its mining plan.
The mine expansion, however, would face tough opposition from the Citizens’ Alliance and its allies in the community.
“Rock bolting would be an end-of-life mine plan if RMI is not moving forward with the full mine expansion,” Yeldell said.
Download the DRMS Aug. 27 letter: Proposed Reclamation Cost Estimate (53 pages, 1.8 MB)