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CBA 2 and Coal Gulch; Haul Roads to CRDA 1, 2, and 3; 2 West Portals Access Road; Coal <br />Gulch; North Portal Area; North Portal Diversion Ditch and Topsoil Pile 2; Substation B; and <br />Coal Creek Realignment. DRMS is not approving the Phase III liability release requested for the <br />surface disturbance at: Pond 7 (0.5 acres); North Decline West area (2.3 acres); North Decline <br />East area (4.3 acres); Roadside Borrow area (1.1 acres); and Substation B (0.3 acres). These <br />disapproved areas have been eliminated from the bond release application submitted by Snowcap <br />Coal Company, Inc., which originally requested 136.5 acres to be granted Phase III bond release. <br />DRMS has also proposed to release 2032.9 acres of undisturbed acres from Phase III liability. <br />Snowcap Coal Company, Inc. originally requested 2147 undisturbed acres to be released from <br />liability; however, due to the potential for hydrologic communication between private lands and <br />underground mine workings, DRMS removed 114.1 of these acres from consideration under its <br />SL -08 Proposed Decision. <br />OSMRE participated in the bond release inspection on October 23-25, 2013. The BLM attended <br />the first two days of the inspection. By correspondence dated November 13, 2015, the BLM <br />provided its concurrence with SL -08 (attached). <br />OSMRE finds that Snowcap Coal Company, Inc. has met or exceeded the requirements for Phase <br />I, II, and III liability release on the lands described above. The Division currently holds a <br />performance bond in the amount of $805,952.60 for the Roadside Portals. The Division now <br />proposes to release the appropriate phased liability amounts on these disturbed lands and 2032.9 <br />acres of undisturbed lands. DRMS has also determined that the return of any bond monies <br />associated with the approved reduction in reclamation liability is not appropriate at this time. <br />Due to the potential for hydrologic communication between private lands no longer associated <br />with this bond release and underground mine workings, DRMS has determined that the requested <br />$719,560.86 by Snowcap Coal Company, Inc. should be retained until these matters are resolved. <br />OSMRE concurs with the proposed release of liability and retention of bond on these disturbed <br />and undisturbed lands. <br />Thank you and your staff for coordinating this Federal mine bond release action through the <br />DFD. Please direct any questions concerning this action to Dan MacKinnon, Natural Resources <br />Specialist, at dmackinnon@OSMRE.geo_v or (303) 293-5011. <br />Sincerely, <br />} <br />Alan Boehms, Manager <br />Denver Field Branch <br />Attachment <br />Cc: Tonya Hammond, Snowcap Coal Company, Inc. <br />