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The SL -08 application for a Phase I/II/III bond release was received by the Division on September 4, <br />2013. The application was deemed complete on October 4, 2013 after the Division received proof of <br />publication of the applicant's public notice. Snowcap Coal Company, Inc. published notice of the <br />bond release application in The Daily Sentinel once weekly for four consecutive weeks, beginning on <br />August 30, 2013. SCC also notified land owners within and adjacent to the mine permit area, and <br />other interested parties of the application for bond release, as required by Rule 3.03.2(1). <br />In response to the land owner notifications, Mr. Rudolph Fontanari, Jr., a land owner of property <br />within and adjacent to the permit area, filed a written objection to Snowcap Coal Company's bond <br />release application SL -8 by a letter to the Division dated October 7, 2013. The Division reviewed Mr. <br />Fontanari's letter and met with him at his property on three separate occasions to inspect the areas <br />where he had concerns including the SL -8 bond release inspection which he attended on October 23, <br />2013. Mr. Fontanari submitted a follow-up letter received by the Division on March 4, 2014. In this <br />second letter, Mr. Fontanari indicated that he had additional data/concems regarding the statements <br />made in his objection letter. His primary concerns in both letters were related to potential impacts to <br />the hydrologic balance as a result of subsidence due to the underground mining operation beneath and <br />adjacent to his property. Although the concerns he raised were largely hydrology related, the results <br />of our inspections and evaluation regarding Mr. Fontanari's objection are described in their entirety <br />under Subsidence in Section III of this Findings of Compliance document. Both letters submitted by <br />Mr. Fontanari are provided in Attachment 3. <br />Mr. Brant Harrison, a landowner and owner/operator of Kokopelli Farm and Produce which is located <br />within the current permit boundary, attended the majority of the bond release site inspection. At the <br />conclusion of the inspection on the afternoon of October 25th, he inquired about the procedures for <br />filing an objection to the bond release or filing a citizen complaint. He indicated that he believed <br />there had been a change to the quantity of water in Rapid Creek, which flows across the permit area <br />and which he has water rights and diverts water from the creek. He stated that there had been a <br />recent change in the amount of available water in Rapid Creek, and he wondered if it could be due to <br />subsidence related impacts. The Division explained the process and timeframe for filing an objection <br />to the bond release. At the time of the Proposed Decision for SL -8, Mr. Harrison has not submitted <br />anything in writing to the Division related to his concerns that he voiced during the bond release <br />inspection. Mr. Harrison's concerns regarding potential hydrologic impacts as a result of subsidence <br />are also discussed below under Subsidence in Section III of this Findings of Compliance document. <br />The Division scheduled and conducted a bond release inspection on October 23 through 25, 2013. <br />The site inspection was conducted in accordance with Rule 3.03.2(2). Mike Boulay of the Division <br />conducted the bond release inspection. Ms. Tonya Hammond representing Snowcap Coal <br />Company, Inc. (SCC), Spencer Shumate of the Office of Surface Mining, and Jim Stover of J.E. <br />Stover & Associates, Inc. accompanied the Division for the entire inspection. Mr. Scott Gerwe, <br />BLM, attended the inspection on October 23 d - 24th but was unavailable for the final day of <br />inspection on October 25th. Kevin Conrad of Grand Valley Water Users was present for the <br />orientation meeting on-site prior to the site walk through on October 23 d but chose not to attend <br />the inspection. All land owners of record were notified of the inspection via certified mail. Of <br />those, Rudy Fontanari, Trevor Grosse of Western Slope Flagstone (accompanied Rudy), John <br />Page 4 <br />