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SL 4
<br />ENT OF Ty United States Department of the Interior
<br />' Aj
<br />g. OFFICE OF SURFACE MINING
<br />Reclamation and Enforcement
<br />�
<br />Western Region Office
<br />1999 Broadway, Suite 3320
<br />Denver, CO 80202 -3050
<br />JAN 9 2014 RECEIVED
<br />David Berry, Director
<br />Office of Mined Land Reclamation JAN 16 2014
<br />Division of Reclamation, Mining and Safety
<br />1313 Sherman Street, Room 215 DIVISION OF RECLAMATION
<br />Denver, CO 80203 -2273 MINING AND SAFETY
<br />RE: Approval of Partial Phase I Bond Release, Seneca II -W Mine, Permit No. C- 1982 -057
<br />DRMS Proposed Decision and Findings of Compliance, December 19, 2013
<br />Dear Mr. Berry,
<br />This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD)
<br />receipt and review of the above Phase I Bond Release Proposed Decision document prepared by
<br />the Division of Reclamation Mining and Safety dated December 19, 2013. DFD agrees with the
<br />findings and decision document and hereby provides OSM concurrence for the above bond
<br />release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section
<br />24, of the State - Federal Cooperative Agreement.
<br />DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado
<br />regulatory program at Rule 3.03.2.
<br />This Phase I bond release applied to 138.7 acres associated with roads, ponds, channels, and
<br />facilities areas. Specifically, this bond release request was submitted for backfilling, grading,
<br />and drainage reestablishment on County Road 53C, Haul Roads A, J, and K, a domestic /
<br />industrial water well, Postmine Channel PM -2D, Postmine Channel PM -4D, and for Phase I
<br />release of permanent Sediment Ponds 005, 006, 009, 015, 016, and 017, permanent stock ponds
<br />T -2, 3, 5, 18, 20, 22, 24, 26, and 27, the maintenance shop area, water well house, and the
<br />remaining power lines. DRMS is not approving the bond release requested for the PM 4 -D
<br />drainage, sediment ponds 6, 16, 17 and stock pond T -22. These areas account for 11.05 acres
<br />which are excluded from the bond release approval. Therefore, DRMS is approving Phase I bond
<br />release for 127.65 acres
<br />OSM participated in the bond release inspection on June 4, 2013. The BLM did not attend this
<br />inspection. By letter dated January 6, 2014, the BLM provided its concurrence with SL -4
<br />(attached). OSM interprets the BLM's concurrence to mean that Seneca Coal Company is in
<br />compliance with all applicable BLM coal lease stipulations.
<br />OSM finds that Seneca Coal Company has met or exceeded the requirements for Phase I bond
<br />release on the 127.65 acres of land as described above. Although the reclamation cost estimate is
<br />$5,818,456.00, the Division currently holds a performance bond in the amount of $6,255,552.61
<br />for the Seneca II -W Mine. The Division now proposes to release $801,465.00 in bond liability
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