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RULE 3 PERFORMANCE BOND REQUIREMENTS <br />Rule 3.01- Introduction <br />This Rule sets forth minimum requirements and responsibilities for filing and maintaining performance <br />bonds for surface coal mining and reclamation operations and coal exploration in accordance with the Act. The <br />Rule includes minimum requirements for determining the amounts and periods of liability for performance bonds; it <br />establishes minimum standards for the form conditions and terms of performance bonds; it sets forth minimum <br />provisions for criteria schedule and procedures for release of performance bonds; it establishes provisions to be <br />applicable whenever a proceeding for the forfeiture of all or any part of a performance bond as a result of a failure <br />to meet the conditions upon the bond is initiated; and it sets forth special requirements for construction of certain <br />min drainage control facilities. <br />Twentymile Coal, LLC (TC) is currently bonded for the surface disturbance and reclamation of the Foidel Creek <br />Mine under a Self -Bond (SB -008) in the amount of $10,056,089. <br />TC's bond reclamation cost estimate for the CRDA Expansion (TR09-67) takes into account the consideration that <br />bond monies have already been posted for the existing Refuse Pile, which includes the entire eastern side that will <br />be redisturbed by the proposed CRDA Expansion. This existing bond, along with the calculated bond coverage for <br />an initial bonded disturbance area of approximately 50 acres, addresses bonding for the initial area of disturbance. <br />This initial bonded area includes redisturbance of the eastern side of the existing RDA, the initial CRDA bonded <br />disturbance area, haulroad disturbance, stockpile and ditch disturbance, stockpile access corridors, and a bonded <br />buffer to address any minor unplanned disturbances. With a total facility life of approximately 14 to 20 years, it is <br />anticipated that the remaining 50 acres of the total CRDA expansion area of 140 acres will be bonded in two future <br />bond increments of approximately 20-30 acres each. It is anticipated that Bond Increment I will occur 3-5 years in <br />the future, and that Bond Increment II will occur 7-10 years in the future. Consistent with the constraints inherent <br />in a cumulative bonding approach, TC will clearly delineate bonded areas, will limit disturbance to those areas, and <br />will work with the CDRMS to determine and maintain adequate bond coverage for all activities. <br />Additional surety required due to any new mining activities planned under permit revisions will be obtained and <br />submitted to the CDRMS in accordance with Rule 3.02. Calculations of bond reclamation liabilities are provided in <br />Appendix A to the PAP. <br />MRI 5-290 3.01-1 10/02/15 <br />