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balance that may result from water application for irrigation purposes and its effect on mine inflow <br />and potential discharges from the South Portal and Outfall 016, specific disturbed area acreages and <br />affected area acreages will be disallowed for final bond release. Affected areas and all surface <br />disturbed areas that overlie underground workings that are either hydraulically down gradient or have <br />the potential to be in hydrologic communication from the location on the Fontanari property where <br />water was applied to the surface down to the Outfall 016 discharge will be withheld from final bond <br />release pending further investigation. These areas include 8 acres of surface disturbance and 114.1 <br />acres of affected area. An additional 0.5 acres of disturbed land is withheld from Phase III bond <br />release due to weed/vegetation concerns. With exception of these excluded acreages, Snowcap Coal <br />Company has submitted the proper documentation demonstrating and field inspection has verified, <br />that negative environmental impacts from subsidence are not present in the area overlying the <br />underground workings within the proposed SL -8 liability release area. Due to the potential for new <br />bond liability that may arise related to potential repairs of any areas of potential hydrologic <br />communication, Snowcap Coal Company has agreed to not request return of any bond monies <br />associated with reductions in reclamation liability approved under SL8 until such time in the future <br />as it is determined that that potential reclamation liability is covered by reclamation bond monies. <br />During the liability release inspection, no positive indications of subsidence impacts were observed <br />within the requested release areas with exception of two subsidence cracks located at the boundary <br />between Mr. Fontanari's property and BLM land east of the old Go Boy Mine. Mr. Fontanari stated <br />that he believes the subsidence cracks that have formed are likely affecting the quantity of water he <br />receives for irrigation purposes. The Division concludes that the subsidence cracks are hydrologically <br />isolated from the Rapid Creek watershed from which Mr. Fontanari diverts water. Given the <br />subsidence cracks' location, the steep terrain, dry climate, and limited aerial extent of the upper and <br />lower cracks, it is very unlikely that they have any influence on the amount of available water in <br />Cottonwood or Rapid Creeks. The Division concludes that no material damage has resulted from the <br />presence of these subsidence crack features. <br />No other property owners or residences located within the proposed release area have reported any <br />problems potentially related to subsidence. Parties responsible for operation and maintenance of <br />structures such as water lines, transmission lines, canals, and roads located within or adjacent to the <br />proposed release area, have not reported any problems potentially caused by mine subsidence. <br />Page 37 <br />