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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Memorandum <br />TO: Tabetha Lynch, DRMS <br />FROM: Jared Ebert, DRMS <br />Date: January 20, 2016 <br />RE: Keenesburg Strip Mine; C-1981-028, SL -08 Partial Phase III Bond Release Request <br />Cost Estimate <br />I have conducted the reclamation cost estimate for the SL -08 partial Phase III bond release application for <br />the Keenesburg Strip Mine. The permittee has requested Phase III bond release of the main facilities area <br />and main access road. The bond release parcels are depicted as Areas P1 and P2 on the map submitted <br />with the application. Given this, in accordance with Rule 3.03.1(2)(c) the remaining portion of the bond <br />amount shall be released when the permittee has successfully completed all surface coal mining <br />reclamation operations in accordance with the approved reclamation plan. You have indicated that Areas <br />P 1 and P2 are eligible for Phase III bond release. <br />The last site wide reclamation cost estimate for the Keenesburg Strip Mine was conducted during the <br />Midterm Review No. 6 (MT6). This resulted in a bond adjustment and the Division issued a surety <br />increase (SI -01) on May 24, 2014. The liability was subsequently reduced with the approval of SL -07, a <br />partial Phase I bond release on May 9, 2015. In order to estimate the liability eligible for release with the <br />approval of the SL -08 application, the site wide cost estimate was updated with the most recent unit costs <br />and the reclamation tasks associated with the SL -08 bond release parcels were eliminated or reduced as <br />appropriate. The following tasks were eliminated or reduced: A05, C01, CO3, C04, E04, E06, F01, G01 <br />and JO 1. Also, the site wide cost estimate was adjusted to take into account the approval of the SL -07 <br />parcels which still have Phase II and III liability associated with them. The table below summarizes my <br />fmdings. <br />The current liability amount set for the site is $1,629,326.91. This included liability to demolish the <br />structures located within the Area Pl, remove the main access road located within P2 and to grade, topsoil <br />and revegetate these areas. With the approval of SL -08 the Division should release $431,867.06. The <br />remaining revised required surety at the site should be set at $1,197,459.85. <br />The remaining revised required surety is sufficient to assure completion of the remaining reclamation work at <br />the site if the work had to be performed by the Division, including the cost of reestablishing vegetation on <br />any revegetated areas, should those areas fail. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />