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lP��ENTO lye; United States Department of the Interior tfQ�: 1�at g OFFICE OF SURFACE MINING Reclamation and Enforcement �'4?crr 3a,e` Western Region Office 1999Bfoadway,'Suite 3320 Denver, CO 80202 -3050 MAY 0 6 2015 Virginia Brannon, Director E-CEIVED Office of Mined Land Reclamation y 'V 12 2 915 Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 EINISION OF RE ":AMATION, Denver, CO 80203 -2273 MININGAN; SAFETY RE: Approval of Partial Phase III Bond Release, Sage Creek Mine, Permit No. C- 2009 -087, SL -3, DRMS Proposed Decision and Findings of Compliance, April 8, 2015 Dear Ms. Brannon, This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) receipt and review of the above Phase III Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety dated April 8, 2015. DFD agrees with the findings and decision document and hereby provides OSM concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State - Federal Cooperative Agreement. DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado regulatory program at Rule 3.03.2. This bond release application originally requested Phase III release on 1,028 acres associated with interim and permanent program lands. DRMS is approving Phase III bond release for 1,026 acres. The two -acre decrease is due to two spoil springs which were not supposed to be included in the application. DRMS conducted the bond release inspection on August 13 and 14, 2014. OSM did not participate in the bond release inspection. The landowner was also notified but chose not to be represented during the inspection. By letter dated April 16, 2015, the BLM provided its concurrence with SL -3 (attached). OSM interprets the BLM's concurrence to mean that Peabody Energy's Sage Creek Mine is in compliance with all applicable BLM coal lease stipulations. OSM finds that Seneca Coal Company has met or exceeded the requirements for Phase III bond release on the 1,026 acres of land as described above. Although the reclamation cost estimate is $3,636,389.73, the Division currently holds a performance bond in the amount of $4,420,284.46 for the Sage Creek Mine. The Division now proposes to release $374,491.00 in bond liability and has determined that the remaining $4,045,793.46 in bond is sufficient to assure completion of the reclamation plan if the work had to be performed by the Board or through independent contractors in the event of forfeiture. OSM concurs with the proposed bond release amount.