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United States Department of the Interior OFFICE OF SURFACE MINING vp • Reclamation and Enforcement Western Region Office 1999 Broadway, Suite 3320 Denver, CO 80202-3050 January 31, 2017 Mike Boulay Coal Program Supervisor Colorado Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203 Re: Phase III Bond Release Application SL -10, Colowyo Mine, C-1981-019 Dear Mr. Boulay, This letter acknowledges the Office of Surface Mining Reclamation and Enforcement (OSMRE), Denver Field Branch's (DFB) receipt and review of the subject Phase III bond release proposed decision prepared by the Division of Reclamation, Mining and Safety (DRMS) and issued January 12, 2017. DFB agrees with the proposed decision and hereby provides OSMRE's concurrence in accordance with 30 CFR 740.15 (d) (3) and 30 CFR 906.30, Article IX, Section 24 of the State -Federal Cooperative Agreement. DFB participated in the bond release field evaluation at the Colowyo Mine September 7, 2016. The surface estate associated with this bond release is a combination of federal, state, and private; the mineral estate was federal and state-owned. Accordingly, the Bureau of Land Management (BLM) notified DFB of its concurrence with the Division's proposed decision by letter dated January 23, 2017. We interpret this letter of satisfaction to mean that Tri-State Generation and Transmission Association, Inc. is in compliance with all applicable BLM stipulations. The Division's proposed decision notes the applicant's compliance with the Colorado approved regulatory program at Rule 3.03.1(2)(c) and recommends authorizing the Phase III bond release of the subject reclaimed parcels. The total bond release recommended by the Division is 202.4 acres at Tri-State Generation and Transmission Association, Inc.'s Colowyo Mine. DFB finds that Tri-State Generation and Transmission Association, Inc. has met or exceeded the requirements for Phase III bond release on the parcels described above. DRMS currently holds a performance bond in the amount of $ $80,517,829.00 for the Colowyo Mine. This amount covers the entire minesite, including the acreage proposed for release under SL -10. Under this action, DRMS proposes to release a total of $140,224.00 from Phase III bond liability. DFB concurs with DRMS's proposed decision and recommends Phase III bond release for the requested areas at the Colowyo Mine.