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A second inspection was conducted on December 4, 2015 to allow Dr. Corley to participate in the SL -03 <br />process. Attendees included: <br />• Rob Zuber and Jim Stark, representing DRMS <br />• Al Weaver and George Patterson, representing EFCI <br />• Jack Robeda, representing the Warnock family and Las Cruces, LTD. <br />• Carin Corley and Dr. W.D. Corley, representing the Corley Company. <br />The Division sent adequacy letters to EFCI on December 18, 2015 and January 8, 2016. Twelve items <br />were identified. Responses were received from EFCI on January 4, 2016; January 13, 2016; and January <br />14, 2016. <br />In addition to the issues raised by landowners (listed in detail above), other adequacy issues were <br />identified by the Division. EFCI addressed them to the Division's satisfaction. <br />H. CRITERIA AND SCHEDULE FOR BOND RELEASE <br />PHASE I <br />Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released when the <br />permittee successfully completes backfilling, regrading, and drainage control in accordance with the <br />approved reclamation plan." <br />The approved reclamation plan for the Southfield Mine is specified in Section 2.05.4 of the Permit <br />Application Plan (PAP) for the Southfield Mine. The key component for Phase I areas in SL -03 of this <br />section of the PAP states that EFCI will "establish a post -mining configuration which complies with <br />regulatory requirements for long term stability and blends with surrounding undisturbed and reclaimed <br />areas." <br />PHASE II <br />Rule 3.03.1(2)(b) states, "Up to eighty-five percent of the applicable bond amount shall be released upon <br />the establishment of vegetation which supports the approved postmining land use and which meets the <br />approved success standard for cover... based on statistically valid data collected during a single year of <br />the liability period". In regard to Phase II bond release, Rule 3.03.2(3)(b) also states, "No more than <br />sixty (60) percent of the bond shall be released so long as the lands to which the release would be <br />applicable are contributing suspended solids to streamflow or runoff outside the permit area in excess of <br />premining levels as determined by baseline data or in excess of levels determined on adjacent nonmined <br />areas." <br />For the alluvial valley floor at the loadout (associated with Oak Creek), the essential hydrologic <br />functions and agricultural productivity must be reestablished (see Rules 3.03.1(2)(b) and 3.03.1(3)(b)). <br />Southfield Mine SL -03 Page 10 of 21 February 23, 2016 <br />