2015-10-08_GENERAL DOCUMENTS - C1981041

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The mine is located three miles northeast of Palisade, Colorado in Mesa County on lands included within: Portions of Sections 26, 27, 28, 34, and 35, T10S, R98W, 6th PM; Portions of Sections 1, 2, 11, 12, and 13, TI IS, R98W, 6th PM; and Portions of Section 7, TI IS, R97W, 6th PM. The location of these sections is contained within the U.S. Geological Survey 7.5 minute Cameo and Palisade Quadrangle maps. This is the eighth bond release request (SL -08) filed for the Roadside North and South Portal Mines. The initial (SL -01) application was withdrawn. The SL -02 application for Phase I bond release was approved October 27, 2003. Various reclaimed surface facility locations within the permit area were granted Phase I bond release based on proper completion of facilities removal, drainage control, and backfilling and grading, by the SL -02 decision. The areas granted Phase I bond release remain in the permit area. With the exception of the Permanent Flood Control Dike (2.8 acres) and the Conveyor Corridor from the Xcel Energy culvert to Haul Road #3 (2.7 acres), they are covered by the reclamation bond. The SL -03 application was approved October 31, 2007 and released from full liability areas overlying underground workings at the Roadside North and South Portal Mines totaling 7,294 acres. The SL -04 application was approved January 26, 2009 and 18 acres were released from Phase I liability in the South Portal areas and at the site of the former overland conveyor/tube structure. The SL -05 application was approved November 5, 2009 and released 2.1 acres from full liability at the "Overland Conveyor" area located adjacent to the Union Pacific Railroad and south of 19/10 Road. The SL -06 application was approved December 14, 2010 and released 14.8 reclaimed acres from Phase II and III liability at an area referred to as the South Portal in T10S, R98W, Section 34. The SL -07 application was approved April 26, 2011 and released 75.2 acres from Phase I, II, and III liability at the Unit Train Loadout facility. Of the 2786 total permitted acres at the Roadside Portals Mine, SCC has requested phased bond liability release on 145.4 acres (corrected to 145.0 acres) of reclaimed surface lands and 2147 acres of undisturbed surface lands as follows: 9.1 (corrected to 8.5) reclaimed acres for Phase I release; 13.7 acres reclaimed /permanent acres for Phase I, II, and III release; 122.6 (corrected to 122.8 acres) acres for Phase II & III release; and 2147.0 undisturbed acres for Phase III release. The 2147 acres being requested for Phase III release have no surface disturbance associated with them; however, 858.1 acres of those acres have been undermined. The bond release application included an exhibit "Bond Release Exhibit SL -08" which shows the original 145.4 (now 145.0) acres nominated for bond release. This figure is included with this findings document as Attachment 1. The specific disturbed areas and corrected acreages requested for the various phases of bond release are included as Attachment 2. Reclamation work has been performed from 1985 through April of 2013. All work has been performed in accordance with approved plans contained in the permit application package. A detailed description of the reclamation that was performed and dates of reclamation work completed for each of the disturbed surface areas requested for bond release is provided in SCC's bond release application titled Snowcap Coal Company Phase I, II, & III Bond Release Application (SL -8). This complete document is available for review on the Division website at www.mining.state.co.us under Mining Data and Imaged Document Data tabs. The Division presently holds a corporate surety performance bond in the amount of $805,952.60 of which $719,560.86 is was originally being requested for release. Page 3