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Introduction <br />This document is the proposed decision of the Colorado Division of Reclamation, Mining and Safety (the <br />Division) for Surety Increase No. 2 (SI -02) at the Foidel Creek Mine, Division file number Permit No. C- <br />1982-056. The package contains three parts. These include: 1) procedures and summary of the bond <br />increase process; 2) observations and findings of the Division regarding compliance with the performance <br />bond requirements of the Colorado Surface Coal Mining and Reclamation Act (Act) and regulations <br />promulgated thereunder; and 3) the Division's proposed decision on the surety increase. <br />Detailed information about the review process can be found in the Act and the Regulations of the Colorado <br />Mined Land Reclamation Board for Coal Mining (Rules). All Rules referenced within this document are <br />contained within the Regulations. Detailed information about the mining and reclamation operations can be <br />found in the permit application on file at the Division offices, located at 1313 Sherman Street, Room 215, in <br />Denver, Colorado. <br />The Foidel Creek Mine is an underground mine which is permitted and operated by Twentymile Coal, LLC. <br />The ownership of the land for which bond increase has been proposed is Federal, State and Private. The coal <br />ownership is Federal, State and Private. <br />I. PROCEDURES AND SUMMARY OF THE INCREASE PROCESS <br />The Division has initiated this surety increase in order to ensure compliance with Rule 3.02.1, which requires <br />a performance bond for all requirements of the Act, Rules, and the approved reclamation plan. Rule <br />3.02.1(3) requires the performance bond to cover land within the permit area upon which surface coal mining <br />and reclamation operations are to be initiated and conducted. Rule 3.02.1(4) states that liability of the <br />performance bond shall continue until the entire reclamation plan has been completed. <br />Rule 3.02.2(4) requires the Division to adjust the required performance bond as affected land acreages are <br />increased or decreased or when the cost of future reclamation changes. Procedures for adjustment of the <br />required performance bond include: <br />(a) Notification of the permittee of any proposed bond adjustment, providing the permittee with an <br />opportunity for an informal conference on the adjustment. <br />On January 6, 2016 the Division provided Twentymile Coal, LLC. (TC) notice of the proposed bond <br />adjustment and provided an opportunity for TC to request an informal conference. TC requested an <br />informal conference which was held on March 30, 2016. <br />(b) Issuance of a written proposed decision by the Division to adjust the bond amount, publication of <br />notice of the proposed decision in a newspaper of general circulation in the locality of the mining <br />operation once a week for two weeks following issuance of the decision, and notification of the <br />permittee the surety and any person with a property interest in the collateral who has requested <br />notification. <br />This document serves as the written proposed decision. A publication of the notice of the proposed <br />decision will be initiated. <br />(c) An opportunity for a formal hearing pursuant to Rule 2.07.4(3); <br />