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Name of Addressee <br />Page 2 <br />Date <br />Task 030A - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase 11 <br />Task 030B - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Task 030C - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Task 045B - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Task 053 - Removed. Pond 011 was permitted to be removed and the area falls under SL -16 Phase I <br />Task 053B - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Based on the Division's SL -16 RCE completed in November of 2015, the costs to complete remaining <br />reclamation associated with the New Horizon Mine was $4,977,983.07; however this amount did not <br />include $9,585.90 associated with TR -69 which was approved in December 2015. As such, the $9,585.90 <br />amount will be added to the $4,977,983.07 SL -16 amount for a total of $4,987,568.97. This amount is <br />$454,376.88 lower than the required liability prior to SL -16. The majority of the costs associated with the <br />reduction are noted above. Typically, the Division does not release costs associated with the <br />replacement of topsoil until the area has achieved Phase II bond release; however, in the case of SL -16, <br />the Division determined that the area associated with SL -16 would not meet the requirments of <br />backfilling, regrading, and AOC without the topsoil in question. As such the SL -16 RCE could remove the <br />topsoil replacement tasks; however, as noted below, liability of the tasks can not be released per Rule <br />3.03.1(2), as such, the task will remain until Phase II release. <br />Although the SL -16 RCE is $454,376.88 lower than the required liability prior to SL -16, the Division can not <br />approve the full release of $454,376.88 per Rule 3.03.1(2). Based on the total disturbed area reported in <br />the 2014 ARR of 801.96, the 107.8 acres that are requested for Phase I bond release make up <br />approximately 13.4% of the total disturbed area. Per Rule 3.03.1(2), the Division can release up to 60% of <br />the entire bond amount for Phase I release. 60% of $5,441,945.85 is $3,265,167.51. The total amount <br />that the Division can release per Rule 3.03.1(2) is $437,532.45 (13.4% of 60%). <br />With the 2015 Midterm Review and associated revisions prior to SL -16, the Division determined that costs <br />to complete remaining reclamation associated with the New Horizon Mine were $5,441,945.85. After <br />adjusting the RCE to account for tasks completed under SL -16 the Division determined the costs to <br />complete remaining reclamation to be $4,987,568.97. Per Rule 3.03.1(2), the Division can only release <br />$437,532.45 of the original $5,441,945.85 with the approval of SL -16. As such, the Division has <br />determined that the remaining liability at the New Horizon Mine to be $5,004,413.40. <br />Please let me know if you have any questions. <br />