2015-12-22_REVISION - C1980007 (2)

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SMENT OF Ty United States Department of the Interior F,y� a OFFICE OF SURFACE MINING Reclamation and Enforcement *7"3. \�p� western Region Office 1999 Broadway, Suite 3320 Denver, CO 80202-3050 RECEIVED DEC 17 2015 DEC 2 2 2015 of Michael Boulay, Director Division mining sa et tion, � Rey Office of Mined Land Reclamation Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203-2273 RE: Approval of SL -8 Partial Phase I Bond Release, West Elk Mine, Permit No. C-1980- 007, DRMS Proposed Decision and Findings of Compliance, November 20, 2015 Dear Mr. Boulay, This letter acknowledges the Office of Surface Mining Reclamation and Enforcement (OSMRE), Denver Field Division's (DFD) receipt and review of the above Phase I Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety dated November 20, 2015. DFD agrees with the findings and decision document and hereby provides OSMRE concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State -Federal Cooperative Agreement. DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado regulatory program at Rule 3.03.2. This Phase I bond release applies to 10.05 acres associated with the proper plugging and abandonment of 15 drill holes (MDW's), the backfilling and regrading of 11 drill pads and the backfilling and regrading of the associated roads and road spurs (eight total). This land is federally owned and the coal mined was federally owned. Reclamation f r which the bond release has been requested was conducted in 2014. OSMRE participated in the bond release inspection on July 22, 2015. The U.S. Forest Service (USFS) and the Bureau of Land Management (BLM) also participated in this inspection. By letters dated December 14, 2015, the USFS and BLM provided their concurrence with SL -8 (attached). OSMRE interprets the BLM's concurrence to mean that Mountain Coal Company, LLC (MCC) is in compliance with all applicable BLM coal lease stipulations. Based on available documentation, OSMRE agrees with DRMS's determination that MCC has met or exceeded the requirements for Phase I bond release on the 10.05 acres of land as described above. The current reclamation liability at the West Elk Mine, prior to SL -8, is $14,133,349.00, while the Division currently holds a performance bond in the form of two corporate sureties in the amount of $15,000,000.00. The Division now proposes to release $110,452.00 in bond liability and has determined that the remaining $14,022,897.00 in bond liability is sufficient to assure completion of the reclamation plan if the work had to be