2016-12-23_GENERAL DOCUMENTS - C1980007

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West Elk Mine Partial Phase I Bond Release SL-10 Findings Page 5 of 8 II. CRITERIA AND SCHEDULE FOR BOND RELEASE PHASE I The Division evaluated MCC’s application for a partial Phase I Bond Release on 9.97 acres, requested in the SL-10 application. Under Colorado's Permanent Program, the process of releasing the reclamation bond for a mine site is explained in Rule 3. 03 and further described in the Division's 1995 Guideline Regarding Selected Coal Mining Bond Release Issues. The bond release process involves three phases. At Phase I, Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved reclamation plan." The Phase I Bond Release is the only phase of bond release applicable to the SL-10 application. Evaluation and inspection of the reclaimed areas was based on the specific requirements of the reclamation plan and the functional requirements of the post -mining land use. Criteria for Phase I Bond Release included the following (if applicable). 1. Hillslope and drainage channel gradients and general design compliance; 2. Performance of the reconstructed topography. Symptoms of failure or instabilities such as slumping or exposed highwalls were examined; 3. Hillslope design/function with regard to erosion; 4. Swales and depressions with regard to numbers of features and effect on post-mining land use; 5. Blending of regraded land to undisturbed areas; 6. The functioning of drainages with regard to knick-points, blending at disturbance boundaries and channel erosion; 7. Erosional features; and 8. Drainage control for the reclaimed area, including upslope diversions. MCC’s approved reclamation plan was prepared in accordance with Rule 2. 05. 4. The approved reclamation plan and backfilling and grading plan for the West Elk Mine are found in Volume 1 of the permit application package (PAP). Exhibit 80, which is also found in the West Elk PAP, provides specific detail regarding the mine ventilation boreholes (MVBs) and associated pads and roads. III. OBSERVATIONS AND FINDINGS PHASE I The bond release inspection was conducted on 20-22 June 2016, with a follow up inspection on 27 July 2016. All of the requested areas were located above E-seam longwall panels E3 and E4. The disturbances were small, and included drill pads for MVBs as well as associated access roads. Two of the holes (09LWE4X37 and 09LWE4X52) were originally drilled as exploration holes but were added to the mine permit with MR-352, in order to be used as MVBs. All of the sites requested for Partial Phase I Bond Release are included in Table 2, at the end of this document. The reclamation plan for MVB drill pads generally has the following three steps: 1. Upon completion of each phase of activity at a given site, all debris, trash, and drilling related