2016-11-17_GENERAL DOCUMENTS - C1992080

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DRMS Permit C-1992-080 Page 4 of 7 more or less. The Division has approved four previous bond releases for the Carbon Junction Mine. SL-01, approved in May 1997, was a Phase I, II, and III bond release of the explosives bench and access road. It released 18 acres but did not reduce the liability for the mine. SL-02, approved in July 2005, was a Phase I, II, and III bond release of the South Pit and ancillary areas. It released 61 acres and reduced the liability for the mine by $150,416.00. SL-03, approved in May 2008, was a Phase I bond release of area within the North Pit and haul road, the Previously Reclaimed Spoil Area, and several other areas. It released 28.6 acres and reduced the liability for the mine by $314,909.00. SL-04, partially approved in June 2011, was a Phase I and II bond release of many areas on the site (request for Phase III was denied by the Division). It reduced the liability for the mine by $293,669.00. An application for Phase III bond release (SL-05) was received by the Division on June 30, 2016. The application was deemed complete on August 4, 2016, after the Division received proof of publication of the applicant's public notice. OEI published notice of the bond release application in Durango Herald once weekly for four consecutive weeks, beginning June 29, 2016. OEI also notified land owners within and adjacent to the mine permit area, and other interested parties of the application for bond release, as required by Rule 3.03.2(1). No comments, written objections, or requests for an informal conference regarding the bond release application were received by the Division. The Division scheduled and conducted a bond release inspection on September 7, 2016. The site inspection was conducted in accordance with Rule 3.03.2(2). The Division notified the landowners (Marc and Jane Katz) regarding the inspection by certified mail. Inspection attendees included:  Arbie Marie “Chi Chi” Price of OEI  Michael Savage of Savage and Savage, Inc. (consultant for OEI)  Moira Compton, representing the Katz family (landowner)  Robert Zuber of the Division. Minor adequacy issues were discussed during the inspection:  The lack of a defined ditch at the bottom of the North Pit Road  The excavation and swale near the ditch that flows into Sediment Pond #1  Musk Thistle seen around the site, including reclaimed Sediment Pond #2 and near the large culvert  Erosion on the Boundary Road  The damage by trespassers on Topsoil Stockpile #2. Resolution of these issues was accomplished to the Division’s satisfaction.