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Introduction <br />This document is the proposed decision of the Colorado Division of Reclamation, Mining and Safety (the <br />Division) for Surety Increase No. 1 (SI1) at the Keenesburg Strip Mine, Division file number Permit No. C- <br />1981 -028. The package contains three parts. These include: 1) procedures and summary of the bond <br />increase process; 2) observations and findings of the Division regarding compliance with the performance <br />bond requirements of the Colorado Surface Coal Mining and Reclamation Act (Act) and regulations <br />promulgated thereunder; and 3) the Division's proposed decision on the surety increase. <br />Detailed information about the review process can be found in the Act and the Regulations of the Colorado <br />Mined Land Reclamation Board for Coal Mining (Rules). All Rules referenced within this document are <br />contained within the Regulations. Detailed information about the mining and reclamation operations can be <br />found in the permit application on file at the Division offices, located at 1313 Sherman Street, Room 215, in <br />Denver, Colorado. <br />The Keenesburg Strip Mine is a Surface Mine which is permitted and operated by Coors Energy Company. <br />The ownership of the land for which bond increase has been proposed is Private, and the coal ownership is <br />State and Private. <br />L PROCEDURES AND SUMMARY OF THE INCREASE PROCESS <br />The Division has initiated this surety increase in order to ensure compliance with Rule 3.02.1, which requires <br />a performance bond for all requirements of the Act, Rules, and the approved reclamation plan. Rule <br />3.02.1(3) requires the performance bond to cover land within the permit area upon which surface coal mining <br />and reclamation operations are to be initiated and conducted, Rule 3.02.1(4) states that liability of the <br />performance bond shall continue until the entire reclamation plan has been completed. <br />Rule 3.02.2(4) requires the Division to adjust the required performance bond as affected land acreages are <br />increased or decreased or when the cost of future reclamation changes. Procedures for adjustment of the <br />required performance bond include: <br />(a) Notification of the permittee of any proposed bond adjustment, providing the permittee with an <br />opportunity for an informal conference on the adjustment; <br />(b) Issuance of a written proposed decision by the Division to adjust the bond amount, publication of <br />notice of the proposed decision in a newspaper of general circulation in the locality of the mining <br />operation once a week for two weeks following issuance of the decision, and notification of the <br />permittee the surety and any person with a property interest in the collateral who has requested <br />notification; and <br />(c) An opportunity for a formal hearing pursuant to Rule 2.07.4(3); <br />II. OBSERVATIONS AND FINDINGS <br />Prior to Permit Renewal No. 6 (RN6) the reclamation bond held for the site was $2,001,475.00. In <br />September of 2011; during the review of RN6, the Division recalculated the financial liability amount and <br />found it to be $1,913,161.94. The actual financial warranty held was never reduced to that amount. During <br />the review of the SL6 bond release application which was approved in January of 2012, the Division <br />approved CEC request to release liability in the amount of $63,799.00. CEC reduced their financial warranty <br />to $1,937,676.00 ($2,001,475.00 minus $63,799.00). However, the Division re- evaluated the reclamation <br />