2016-01-07_GENERAL DOCUMENTS - C1981019

• Permit No: C1981019
• IBM Index Class Name: General Documents
• Doc Date: 1/7/2016
• Doc Name: Proposed Decision & Findings
• From: DRMS
• To: Colowyo Coal Company
• Permit Index Doc Type: Findings
• Media Type: D
• Archive: No

SL-08 Partial Phase I Bond Release Application

The SL-08 application was received by the Division on 20 May 2015 and deemed incomplete on 9
July 2015. The original SL-08 application was deemed incomplete by the Division due to the
submitted public notice missing requirements of Rule 3.03.2(1)(b). After revisions to the public
notice by Colowyo, the Division deemed SL-08 complete on 7 September 2015. Colowyo published
notice of the bond release application in the Craig Daily Press once weekly for four consecutive
weeks, beginning 17 July 2015 and ending on 7 August 2015. Additionally, Colowyo published
notice of the bond release application in the Herald Times once weekly for four consecutive weeks,
beginning 16 July 2015 and ending on 6 August 2015. Colowyo notified land owners within and
adjacent to the mine permit area, the Office of Surface Mining (OSM), the Bureau of Land
Management (BLM) and other interested parties of the application for bond release, as required by
Rule 3.03.2(1). No comments, written objections or requests for an informal conference regarding
the bond release application were received by the Division.

A bond release inspection was scheduled and conducted on 22 September 2015. The site inspection
was conducted in accordance with Rule 3.03.2(2). Inspection attendees included: Zach Trujillo of
the Division; Tom Medlin of OSM; Kurtis Blunt of Colowyo; and Jennifer Maiolo of BLM. No
representatives from State or local agencies, or adjacent land owners attended the inspection;
however, all parties were notified of the inspection via certified mail. A summary of the bond
release inspection are presented in Section IV, below. Detailed observations of the inspection are
documented in the inspection report that was issued 28 September 2015. See Figure 1 for the
location of the SL-08 partial Phase I Bond Release area.

III. CRITERIA FOR BOND RELEASE

Phase I Bond Release

The Division evaluated Colowyo’s request for partial Phase I Bond Release on 189.6 acres in the
SL-08 application, as shown on Figures 1 - 15 of this document. The process of releasing the
reclamation bond for a coal mine site in Colorado is explained in Rule 3.03 and further described in
the Division’s 1995 Guideline Regarding Selected Coal Mining Bond Release Issues. The bond
release process involves three phases. At Phase I, Rule 3.03.1(2) (a) states, "Up to sixty percent of
the applicable bond amount shall be released when the permittee successfully completes backfilling,

regrading, and drainage control in accordance with the approved reclamation plan."

Evaluation and inspection of the reclaimed areas was based on the specific requirements of the
reclamation plan and the functional requirements of the post-mining land use. Criteria for bond
release included the following.

1. Hillslope and drainage channel gradients and general design compliance;
2. Performance of the reconstructed topography. Symptoms of failure or instabilities such as
slumping or exposed highwalls were examined;

Proposed Decision and Findings of Compliance January 2016
Partial Phase I Bond Release SL-08 Page 4