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5/15/17 <br />Questions on reclamation requirements for Bowie 1 <br />1. Does the $4million bond cover both Bowie land 2, or just Bowie 1? <br />The Bowie No. 1 and Bowie No. 2 Mines are separate permits and, as such, they have their own <br />bonds. The approximate $4 million bond for the Bowie No. 1 Mine is only for that mine. The <br />Bowie No. 2 Mine has a bond in the amount of approximately $11 million. <br />2. The $2.2 million cost summary dated 2/9/2015—was this developed with Bowie or by Bowie, <br />and if performed, inspected and approved by DRMS would allow release of just that $2.2 million <br />portion of the $4million of the bond, or all of the bond? <br />The Division creates an estimate of reclamation liability, based on the approved reclamation <br />plan in the permit, independent of the operator. This calculated liability is what the Division <br />uses to set the required bond. It is based on independent and verifiable costs and is updated in <br />its entirety a minimum of every two years to account for changes in costs. <br />Bond releases are typically applied for in phases as an operator completes reclamation. The <br />Division will not and cannot release the entire bond until all reclamation has been completed in <br />accordance with the approved reclamation plan. <br />What constitutes "Final Abandonment" and does this trigger time frames for required <br />reclamation of all mining related sites for Bowie? Does Final Abandonment apply to each Bowie <br />mine #1 and #2 separately? Has Final Abandonment occurred for both Bowie #1 and Bowie #2 <br />officially? If so, was there a notification to DRMS? <br />Although the Bowie No. 1 and Bowie No. 2 Mines have the same operator, they are <br />independent permits. The Bowie No. 1 Mine is in permanent cessation and has been conducting <br />reclamation. The Bowie No. 2 Mine is in temporary cessation and can return to active status <br />and restart operations once they notify the Division. <br />Who is the bond issuer? I see that this is a "corporate" security—that doesn't mean this is a <br />self-funded amount hopefully—can you confirm there is a valid outside bond issuer? <br />The bonds at both the Bowie No. 1 and Bowie No. 2 Mines are issued by Lexon Insurance <br />Company. It is not a self -bond but, rather, an "insurance policy". If for any reason the Division <br />would be required to revoke either permit and forfeit the bond, Lexon would either complete <br />the reclamation as required by the approved reclamation plan or they would give the bond <br />monies to the Division to complete the reclamation. <br />5. If so, who is responsible for paying the bond premium once the property is sold and until the <br />bond is released ? <br />Bowie is required to maintain an active bond and continue paying the bond premiums on the <br />loadout property until the area is released from all reclamation liability and the Division <br />terminates is jurisdiction. <br />Questions on Bowie 1 reclamation requirements <br />