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September 2093 Moffat County Minn& LL C * Bond Release Application The Phase 1 Bond Release requirement is (Rule 3.03.1(2)(a)); "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved reclamation plan. " The Phase 2 Bond Release requirement is (Rule 3.03.1(2)(b)); "Up to eighty -five percent of the applicable bond amount shall be released upon the establishment of vegetation which supports the approved postmining land use and which meets the approved success standard for cover, pursuant to 4.15.8, meets applicable productivity standards for prime farmlands or alluvial valley floors pursuant to 3.03.1(3)(b), or croplands pursuant to 4.15.9. With the exception of prime farmlands, evaluation of vegetation establishment pursuant to this paragraph is based on statistically valid data collected during a single year of the liability period. " All of the areas for which bond release is requested meet the applicable Phase 1 bond release criteria. The 2005 Habitat Management, Inc. revegetation success monitoring included the Utah Tract and the Williams Fork Strip Pit. The results of this monitoring effort indicate that both the Utah Tract and the Pre -Law portion of the Williams Fork Strip Pit meet the applicable revegetation success criteria for cover, production, and shrub density for Phase 2 bond release. The Post -Law portion of the Williams Fork Strip Pit area met the revegetation success standard for production, but fell just short of meeting the revegetation success criteria for cover and shrub density. The 2011 ESCO Associates revegetation success monitoring included the Brazell -Simms Facilities (designated in Report as `B &S Shop Reclaimed Area "); the No. 9 Mine Warehouse, Portal Area, and Refuse Disposal Area (designated in Report as "Refuse Pile Reclaimed Area "); and the Reclamation Storage Building (designated in Report as "Old Shop Reclaimed Area "). The results of this monitoring effort indicate that the sampled areas meet the revegetation success criteria for cover reestablishment. 2.3 BOND RELEASE AMOUNT AND ADEQUACY OF REMAINING BOND Based on the DRMS's most recent bonding calculations (Permit Renewal RN05, 05/09/08 — Appendix F), and as summarized by the Table 1, 2012 Bond Release Summary, MCM is requesting Phase 1 partial bond release in the amount of $154,621, and Phase 2 partial bond release in the amount of $782,550, for a total requested bond release of $937,171. Using the DMRS's 2008 calculation of the actual cost to complete remaining reclamation (Appendix F) as a basis, deducting the requested bond release of $937,171 would leave a remaining bond in the amount of $2,675,508. Based on the DMRS's calculations, this remaining amount is adequate to address the remaining identified reclamation liabilities. 2.4 REQUIRED NOTIFICATIONS Consistent with applicable provisions of Rules 3.03.2(1)(a) and (1)(b), MCM has developed a proposed notification and list of recipients for the required notification of intent to seek bond release and a proposed public notice for publication in the local newspaper. Copies of these notification documents are provided as Appendix E.