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II. OBSERVATIONS AND FINDINGS
<br />In conjunction with Midterm Review No. 7 (MT -07) and in accordance with Rule 3.02.2(4), the Division has
<br />reviewed the adequacy of the reclamation bonding instruments and the adequacy of the reclamation cost
<br />estimate. There is currently a corporate surety in place for the Foidel Creek Mine in the amount of
<br />$10,056,089.00. Prior to MT -07, a compiled reclamation cost estimate was developed by the Division as a
<br />part of the Permit Renewal No. 6 (RN -06) process that was appUC1UJM F[REQ ® LCIMIt=
<br />reclamation unit costs for the tasks identified in the RN -06 cost estimate had not been updated until the MT -
<br />07 review. Also, a number of revisions have been approved since the issuance of RN -06 that resulted in an
<br />increase in reclamation liability. For the MT -07 review, the Division consolidated the reclamation tasks from
<br />the RN -06 estimate with the tasks associated with the various revisions approved after the issuance of RN -06
<br />and thus developed a single consolidated reclamation cost estimate. This reclamation cost estimate was sent
<br />to Twentymile Coal with the MT -07 review document on November 23, 2015.
<br />Prior to conducting the midterm review (MT -07), the liability at the site was set at $9,909,129.69. During
<br />MT -07, the Division estimated the reclamation cost liability to be $10,553,208.47. Subsequent to the
<br />issuance of MT -07, the Division approved a minor revision (MR -291) for the construction of the 13LT Why
<br />Utility Borehole. As a result, the liability associated with the activities proposed by MR -291 the liability was
<br />also increased by $24,381.10. Given the cost estimate update conducted for MT -07 and the approval of MR -
<br />291, the total reclamation liability amount for the site was proposed to be set at $10,577,589.57. A notice of
<br />this proposed surety increase was sent to TC on January 6, 2016 and provided TC an opportunity for an
<br />informal conference.
<br />The Division and TC met for an informal conference on March 30, 2016. TC brought up a number of
<br />relevant issues regarding the cost estimate that needed to be reviewed and the costs subsequently amended.
<br />Given this, the Division updated the reclamation cost estimate to address TC ® concerns, and the estimate was
<br />provided to TC on June 14, 2016 along with a letter discussing the concerns that were addressed.
<br />A number of revisions (MR294, MR295, MR296 and MR297) have been approved following the approval of
<br />MR291 and the informal conference which also increased the liability of the site. The costs associated with
<br />these revisions were consolidated into the updated reclamation cost estimate that was provided to TC for
<br />review on June 14, 2016. The Division estimated that the required liability should have been set at
<br />$10,055,009.20. After TC received the updated cost estimate, they raised several additional concerns that the
<br />Division reviewed and provided responses for. During this time, TC submitted and received approval of
<br />MR299, MR300 and MR301 which increased the required liability at the Foidel Creek Mine by $18,654.99.
<br />The liability associated with these revisions were added to the total liability estimated for the site with the
<br />cost estimate sent to TC on June 14, 2016. At this time the Division estimates the total liability for the site to
<br />be $10,073,664.19 ($10,055,009.20 + $18,654.99).
<br />The current bond held at the site is $10,056,089.00. The required surety for the site, not including the liability
<br />adjustments associated with this SI -02, is $10,016,930.01 based on the approval of MR301. Based on the
<br />' L13RE3ESGDLCEFRNED11P DIDwith this SI -02, the proposed liability/required surety for the Foidel Creek
<br />Mine will be $10,073,664.19. This is $56,734.18 more than the current required surety, and is $17,575.19
<br />more than the current bond held by the Division for the site.
<br />III. PROPOSED DECISION
<br />The Division proposes to approve SI -02 and increase the reclamation liability amount to $10,073,664.19.
<br />Any person with a valid legal interest which might be adversely affected by this proposed decision may
<br />request a formal public hearing before the Mined Land Reclamation Board in accordance with Rule
<br />3.03.2(4). Public notice of this proposed decision will be published twice in the Steamboat Pilot and Today
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