2016-10-12_REVISION - C1981019 (3)

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Denver Field Branch Bond Release Evaluation Report Company: Tri-State Generation and Transmission Association, Inc Mine: Colowyo Coal Mine Permit No: C-1981-019 Date of Inspection: May 11, 2016 Weather: Overcast and cool, mid 70s, soft and slightly tacky ground conditions Company Officials: Angela Aalbers, Kurtis Blunt, and Tony Tennyson State Official: Zach Trujillo OSMRE Official: Tom Medlin (#562) Background This was a Phase I bond release inspection at the Colowyo Coal Mine in Meeker, Colorado. Tri- State Generation and Transmission Association, Inc (Tri-State) proposes Phase I release on 65.6 acres of reclamation where it indicates regrading, topsoiling, and seeding have been completed in accordance with the terms of its approved permit. The Colorado Division of Reclamation, Mining and Safety (DRMS) found Tri-States's SL -9 bond release application administratively complete on April 11, 2016. The subject parcel is generally described as: Township 3 North, Range 93 West of the 6h PM, Section 9-E 1/2 and Section 8 -SE 1/4, County of Moffat, State of Colorado. Notification of the proposed bond release was posted in the Rio Blanco Herald Times for four consecutive weeks beginning February 25, 2016 and ending March 17, 2016 as well as the Craig Daily Press beginning February 26, 2016 and ending March 18, 2016. The subject parcel was reclaimed in the summer and fall of 2015. The post mine land use is rangeland. Tri-State currently posts a self -bond for $80,517,829 which covers the entire mine site including the above listed area. With this application, Tri-State requests the maximum bond release for Phase I, or 60% of the amount held for the subject parcel. DRMS has calculated this amount as $347,500.00. Colorado outlines requirements for Phase I bond release at Rule 3.03.1 of the Regulations for the Colorado Mined Land Reclamation Board. For Phase I, the operator must complete the backfilling, regrading (which may include the replacement of topsoil), and drainage control of a bonded area in accordance with the approved reclamation plan. Prior to and upon conclusion of this evaluation I reviewed documents available through the online permitting database maintained by DRMS including the SL -9 bond release application, operations and reclamation plan, public notice affidavit of publication, and various design drawings and maps. The OSMRE and DRMS Team was greeted by operator representatives Ms. Aalbers, Mr. Blunt, and Mr. Tennyson at approximately 0915. The group held a brief pre -inspection meeting to review the requirements for Phase I bond release, history of the reclaimed parcel, and methods of evaluation.