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Introduction <br />This document is the proposed decision of the Colorado Division of Reclamation, Mining and <br />Safety (the Division) for Surety Increase No. 1 (SI -1) at the Bowie No. 2 Mine, Division Permit No. <br />C- 1996 -083. The package contains three parts. These include: 1) procedures and summary of the <br />bond increase process; 2) observations and findings of the Division regarding compliance with the <br />performance bond requirements of the Colorado Surface Coal Mining and Reclamation Act (Act) <br />and regulations promulgated thereunder; and 4) the Division's proposed decision on the surety <br />increase. <br />Detailed information about the review process can be found in the Act and the Regulations of the <br />Colorado Mined Land Reclamation Board for Coal Mining (Rules). All rules referenced within this <br />document are contained within the Rules. Detailed information about the mining and reclamation <br />operations can be found in the permit application on file at the Division offices, located at <br />1313 Sherman Street, Room 215, in Denver, Colorado. <br />The Bowie No. 2 Mine is an underground operation permitted and operated by Bowie Resources, <br />LLC (BRL). The ownership of the land for which bond increase has been proposed is federal and <br />private, and the coal ownership is federal 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, <br />which requires a performance bond for all requirements of the Act, Rules, and the approved <br />reclamation plan. Rule 3.02.1(3) requires the performance bond to cover land within the <br />permit area upon which surface coal mining and reclamation operations are to be initiated and <br />conducted, and Rule 3.02.1(4) states that liability of the performance bond shall continue <br />until the entire reclamation plan has been completed. <br />Rule 3.022(4) requires the Division to adjust the required performance bond as affected land <br />acreages are increased or decreased or when the cost of future reclamation changes. <br />Procedures for adjustment of the required performance bond include: <br />(a) Notification of the permittee of any proposed bond adjustment and providing the <br />permittee with an opportunity for an informal conference on the adjustment; <br />(b) Issuance of a written proposed decision by the Division to adjust the bond amount, <br />publication of notice of the proposed decision in a newspaper of general circulation in <br />the locality of the mining operation once a week for two weeks following issuance of the <br />decision, and notification of the permittee, the surety and any person with a property <br />interest in the collateral who has requested notification; and <br />(c) An opportunity for a formal hearing pursuant to Rule 2.07.4(3). <br />Page 2 of 3 <br />