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satisfaction. <br />On September 3, 2013 SCC submitted minor revision MR76 with the additional information and <br />documentation needed to complete the permanent impoundment demonstrations. The Division <br />sent SCC an adequacy review letter on September 9, 2013 for MR76 that identified two <br />concerns. First, the SEO documentation submitted for sediment ponds 009 and 015 indicated <br />that action may need to be taken to release any out of priority water in the event of a call on the <br />water. The Division requested SCC to update the permanent impoundment demonstration for <br />these ponds to indicate how they will comply with the SEO requirement. Also, if action would <br />be required by the landowner to comply with the SEO requirement SCC would need to submit <br />documentation that the landowner is willing and able to complete these requirements. Second, <br />SCC did not submit water quality data from 2012 that they indicated was included in the permit <br />in order to comply with Rule 4.05.9(13)(a). The Division required SCC to submit this data with <br />an analysis. <br />On November 26, 2013 SCC submitted a response to the Division's adequacy review for MR76. <br />In regards to the first item, SCC made a case that the permanent impoundment demonstrations <br />previously submitted addressed the requirement of the SEO. Also, SCC has submitted signed <br />agreements from the land owners indicating they desire for the impoundments in question to <br />remain on their property after the mine site has been released from liability. Upon further review <br />of the requirements of Rule 3.03.1(3)(c) and 4.05.9(13)(d), and a discussion with the SEO in <br />regards to this issue, the Division concurred with SCC's response to this item and did not require <br />any further action to be taken. In regards to the second item, SCC explained that the 2012 water <br />quality data cited in the permanent impoundment demonstrations did not exist and instead <br />submitted water quality data collected in 2013. On December 3rd, 2013 the Division sent a <br />second adequacy review letter to SCC for MR76 based on their response to the first adequacy <br />review. The Division requested SCC to revise the language in several of the permanent <br />impoundment demonstrations to account for the 2013 water quality data and remove the citation <br />of the non - existent 2012 water quality data. <br />On December 12, 2013 the Division received SCC's response to the second adequacy review <br />letter for MR76. The SCC response addressed the remaining concerns of the Division. With the <br />approval of MR76, the Division could issue the proposed decision to approve SL4. <br />II. CRITERIA FOR BOND RELEASE <br />The Division evaluated Seneca Coal Company's request for Phase I bond release on 138.7 acres in <br />the SL -4 application. Under Colorado's Permanent Program, the process of releasing the <br />reclamation bond for a mine site is explained in Rule 3.03 and further described in the Division's <br />1995 Guideline Regarding Selected Coal Mining Bond Release Issues. The bond release process <br />involves three phases. At Phase I, Rule 3.03.1(2) (a) states, "Up to sixty percent of the applicable <br />bond amount shall be released when the permittee successfully completes backfilling, regrading, <br />and drainage control in accordance with the approved reclamation plan." <br />Page 9 of 18 <br />