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HomeMy WebLinkAbout99-190 i Resolution No. 99-190 RESOLUTION ADOPTING THE 1999 ANNUAL MINING REPORT OF PRAIRIE MATERIAL SALES, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby adopts the 1999 Annual Mining Report for the Elgin Sports Complex prepared by Prairie Material Sales, Inc . , excepting Section 4 regarding unforeseen circumstances and the closing paragraph concerning the movement of the stockpiled overburden, a copy of which is attached hereto. s/ Ed Schock Ed Schock, Mayor Presented: July 14 , 1999 Adopted: July 14, 1999 Omnibus Vote : Yeas 6 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk PRAIRIE MATERIAL SALES, INC. ANNUAL MINING REPORT- 1999 Puisuant to the Addendum to Agreement for Gravel Extraction and Rehabilitation dated December 13, 1994 between the City of Elgin("City")and Prairie Material Sales, Inc., as successor in interest to Road Materials Corporation("Operator")the undersigned Operator does hereby submit to the City its annual report of mining operations and its plans for the continuance of mining in 1999, as contemplated by paragraph 8 of the Mining Agreement. Reference is made to the attached site plan ("Site Plan") for purposes of clarification. 1. By prior agreement with the City, Operator did dispose of overburden taken from cells 9, 8, 7 and 6 into cells 11, 10 and 9 up to approximately the imaginary line connecting Point A and Point B (the A-B Line"). Operator estimates that the average depth of Cells 11,10 and 9 east of the A-B Line is between 10 feet and 15 feet. 2. Operator is currently conducting mining operations along the southerly portions of cells 8, 7 and 6 in the area labeled"Current Mining Area" as shown on the Site Plan(the"Current Mining Area"). When mining in the Current Mining Area is completed,the Operator will begin mining in a westerly and northerly direction through cells 6, 1,2, 3,4 and 5 west of the imaginary line connecting Point C and Point D on the Site Plan(the C-D Line"). 3. Subject to paragraph 4 below, as mining progresses (as described in paragraph 2 above), Operator will continue to dispose of overburden back into cells 9, 8, 7 and 6 with the understanding that as overburden is deposited west of the A-B Line, Operator shall cause the depth of the resulting lake are to gradually increase so that the depth at the C-D Line is not less • than 30 feet. 4. If Operator encounters Unforeseen Circumstances (as hereafter defined)which make the Operator's ability to dispose of overburden into the cells while maintaining the slope and depth described in paragraph 3 above,then: (a) Operator shall notify the City of the development of unforeseen circumstances within 10 days following the discovery of same(such notice being hereafter called the "Unforeseen Consequences Notice"); (b) The City and the Operator shall promptly (but in no event later than 10 business after Operator's notice to the City)meet to discuss and attempt, in good faith,to agree upon an agreeable overburden disposal plan which does not increase Operator's operating costs and which results in the creation of a lake with a depth acceptable to the City. . (c) If, within 15 business days following the date of the Operator's Unforeseen Consequences Notice, the City and the Operator have not reached written agreement as to the disposal of overburden to be thereafter removed,then the Operator will have the right to dispose of such overburden as follows: (i) into cells 9, 8, 7 and 6, but not to a depth which will cause the resulting lake to be • less than 30 feet deep;nand HAWPD0CS\W0RK\28500\1999 Mining Planvfi.doc i onto the surface of the land outside the perimeter of the future lake but at a place which is not so distant as to materially increase the operator's transportation costs or result in a material increase on the wear and tear to the equipment of • Operator or its subcontractors. As used herein,the term"Unforeseen Circumstances" shall mean the occurrence of the situation in which either(i)the depth of the g 0 0 d limestone from the surface of the ground exceeds seventy (70) feet or(ii)the thickness of the strata of good quality limestone decreases to less than fifty (50) feet. _5. During calendar year 1999,the Operator hopes to sell in excess of 800,000 tons of aggregate at an average sales price of$5.50 per ton. If these projections prove true, the royalties to be paid by the Operator to the City should amount to $400,000 to $500,000 for calendar year 1999. 6. Additionally, during calendar year 1999,the Operator will continue to complete the construction of the temporary reservoir located to the southwest of cell 1 of the mining area, as more particularly shown on sheet MP-lA of the plans prepared by Burnidge, Cassell &Associates dated January 4,.1993. Water from the bottom of the mining area will be pumped to the temporary reservoir, when complete, as contemplated by sheet MP-2 of the mining plans prepared by Burnidge, Cassell &Associates. 7. Operator will use good faith efforts to leave a so-called 10-foot safety ledge around the inside perimeter of the future lake. Operator shall provide City written notice within ten (10) days if Operator is unable to provide such a safety ledge along any portion of the future lake. Finally,the Operator wishes to advise the City of an opportunity which may exist for the City to bring *out the elimination of the large stockpile of overburden currently existing along the southerly edge of the mining area south of cells 7 and 8 (as generally depicted on the attached site plan). This stockpile was created at the direction of the City. The relocation or disbursement of the soil within this stockpile is not the responsibility of the Operator under the Mining Agreement(since the Mining Agreement contemplates that overburden will be moved by the Operator only once). Nevertheless,the City may wish to consider causing all or a portion of the Stockpile to be pushed back into the lake (into the areas of cells 8, 7 and 6) after mining operations have been completed in those areas and the mining operations have been moved to cell 1. It is the Operator's opinion that the disposal of this stockpile back into cells 8, 7 and 6 would be the least expensive alternative available to the City. If the City wishes the Operator to submit a bid for the cost of disbursing the stockpile as aforesaid, the City should request such proposal from the Operator. Respectfully submitted, PRAIRIE MATERIALS SALES, INC. B . Jerry Fiordirosa, General Manager HAWPD0CS\W0RK\28500\1999 Mining Planv5.doc � . 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