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Denver Field Branch <br />Bond Release Evaluation Report <br />Company: Tri-State Generation and Transmission Association, Inc. <br />Mine: Colowyo Coal Mine <br />Permit No: C-1981-019 <br />Date of Inspection: July 26, 2017 <br />Inspection Type: Phase II and Phase III bond release <br />Weather: Overcast and cool with intermittent precipitation; soft ground <br />conditions <br />Operator Representative(s): Kurtis Blunt, and Tony Tennyson <br />State Official(s): Zach Trujillo (Division of Reclamation, Mining and Safety) and <br />Phillip Courtney (Colorado State Land Board) <br />BLM Official(s): None present <br />OSMRE Official(s): Tom Medlin (#562) <br />Background <br />This was a Phase II and Phase III bond release inspection at the Colowyo Coal Mine in Meeker, <br />Colorado. Tri-State Generation and Transmission Association, Inc (Tri-State) proposes Phase II <br />and Phase III release on 47.5 and 182.5 acres, respectively, of reclamation where it indicates <br />revegetation in support of the post -mining land use has been completed in accordance with the <br />terms of its approved permit. The Colorado Division of Reclamation, Mining and Safety <br />(DRMS) found Tri-States's SL -12 bond release application administratively complete on May <br />15, 2017. <br />The lands proposed for Phase II release lie within the County of Moffat, State of Colorado, <br />Township 3 North, Range 93 West of the 6th PM, and are generally described as: <br />• Section 16: W'/2 NE'/4, E%2 SW'/4 <br />• Section 15: SE'/4 NW'/4. <br />The lands proposed for Phase III release lie within the County of Moffat, State of Colorado, <br />Township 3 North, Range 93 West of the 6th PM, and are generally described as: <br />• Section 16: S'/2 NE'/4, E'/2 SW'/4, SE'/4 <br />• Section 15: SE'/4 NW'/4. <br />Notification of the proposed bond release was posted in the Craig Daily Press for four <br />consecutive weeks, beginning February 8, 2017 and ending March 1, 2017, as well as the Rio <br />Blanco Herald Times, beginning March 2, 2017 and ending March 23, 2017. The subject parcels <br />were reclaimed between 1993 and 1999. The post mining land use is rangeland. Tri-State <br />currently posts a self -bond in the amount of $80,517,829 (SB -010) which covers the entire mine <br />site including the above listed area. With this application, Tri-State requests the maximum bond <br />release for Phase II, or 25% of the amount held for the subject parcels, and the maximum amount <br />for Phase III, or 100% of the amount held for the subject parcels. <br />Colorado outlines the requirements for bond release at Rule 3.03.1 of the Regulations for the <br />Colorado Mined Land Reclamation Board. For Phase II, the operator must establish vegetation in <br />11Page <br />