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Description of Bond Release Amount Request: This Phase III bond release application <br />requests final release of bond and liability for successfully establishing vegetation and <br />completing all reclamation obligations at the Carbon Junction Mine. The reclamation <br />requested for release is in conformance with the approved post -mining land use which <br />has been implemented. There are no unfulfilled reclamation obligations at the mine site. <br />Protection of the Hydrologic Balance: Annual Hydrologic Reports have been <br />submitted annually for the mine and the information within the AHR's has demonstrated <br />the continued protection of the hydrologic balance at the mine site and off-site. A <br />demonstration that the reclamation and revegetation of the mine site met final hydrologic <br />requirements was submitted (Technical Revision 15 and Minor Revision 06) in 2008, and <br />subsequently approved by the Colorado Division of Reclamation, Mining and Safety. <br />Notice to Parties Identified in Rule 3.03.2(1): Potentially affected parties, La Plata <br />County, and governmental agencies as specified in CDRMS Rule 3.03.2(1) have been <br />noticed, and copies of the notices are contained in this application. Proof of receipt of <br />notice will be provided to CDRMS under separate cover. <br />A copy of the letter to the La Plata County Clerk and Recorder, requesting retention of <br />the public copy of the bond release application, is enclosed in this section. <br />Newspaper Advertisement: A copy of the newspaper advertisement to be published in <br />the Durango Herald is attached. A copy of the proof of publication will be forwarded to <br />CDRMS for inclusion when received. <br />Achievement of Revegetation Success <br />Quantitative vegetation sampling of reclamation areas for Phase III bond release and the <br />dryland pasture reference area at Oakridge Energy, Inc.'s (OEI) Carbon Junction Mine <br />was conducted in June 2015 and 2016. Vegetation cover by plant species, total <br />herbaceous production, and species composition data were collected. Comparisons were <br />made between total vegetation cover means, total herbaceous production means, and <br />species composition results from the sampled reclamation areas and the final revegetation <br />success criteria as described in the Colorado Division of Reclamation, Mining and Safety <br />(CDRMS) permit document C-1992-080. <br />Based on the results of the 2015 and 2016 quantitative vegetation sampling at the <br />reclaimed and reference areas, it was concluded that the requirements of CDRMS Rule <br />3.03.1(2) have been satisfied for vegetation cover, total herbaceous production, and <br />species composition. Overall, the sampling results demonstrate the establishment of a <br />diverse, effective and permanent vegetation community of the same seasonal variety <br />native to the land disturbed, making the reclamation at the Carbon Junction Mine eligible <br />for final bond and liability release. <br />The following is a summary of the quantitative sampling methods and results, followed <br />by tables documenting revegetation success at the Carbon Junction Mine in 2015 and <br />2016. <br />Carbon Junction Mine Phase III Bond Release Application June 2016 Page 3 <br />