2014-12-19_REVISION - C2010089 (2)

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Midterm Review New Horizon North Mine C- 2010 -089 This document presents the results of the Midterm Permit Review (MT -1) of the Western Fuels - Colorado, LLC's New Horizon North Mine. The Colorado Division of Reclamation, Mining and Safety (Division) conducted this review for the purpose of fulfilling the requirements of the Colorado Surface Coal Mining Reclamation Act and the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. This Midterm Review was conducted to fulfill the requirements of Sections 2.08.3, 2.06.2(10), 2.06.3(4)(a), 2.06.5(3), 2.06.7(5) and 3.02.2(4). Section 2.08.3 of the Regulations requires that the Division conduct a review of each permit issued, prior to its midterm. Based on this review, for good cause shown, the Division may require reasonable revisions or modifications of the permit provisions to ensure compliance with the Act and Regulation. Section 3.02.2(4) requires that the Division review the amount of the bond and the terms of acceptance of the bond every 2 1/2 years. Sections 2.06.2(10), 2.06.3(4)(a), 2.06.5(3) and 2.06.7(5) require that experimental practices, mountaintop removal variances, variances from approximate original contour (AOC) for steep slope mining and variances from contemporaneous reclamation for combined surface and underground mining, respectively, be reviewed by the Division where applicable during the Midterm Review. This Midterm Review consisted of a detailed review of the following documents: • The New Horizon North Mine permit application, including stipulations and responses, • All revisions made to the permit since the issuance of the permit, • The New Horizon North Mine annual reclamation and hydrology reports, • Bond surety and reclamation cost estimate, • The Division findings document, • The Division's inspection reports, • Any notices of violations since the issuance of the permit SECTION I — HISTORY The New Horizon North Mine is located in southwestern Colorado, approximately three miles northwest of the town of Nucla in Montrose County. The New Horizon North Mine lies 1 mile north of the New Horizon 2 Mine, Permit No. C- 1981 -008. The initial permit application was submitted on September 28, 2010 by Western Fuels - Colorado, LLC (WFC), and assigned application number C- 2010 -089. The application was New Horizon North Mine -2- 12/20/2014