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Mr. Howard Strand <br />Page 5 <br />April 20, 2018 <br />(i) If the applicant fails to complete the reclamation plan, the guarantor shall do so or the <br />guarantor shall be liable under the indemnity agreement to provide funds to the <br />regulatory authority sufficient to complete the reclamation plan, but not to exceed the <br />bond amount. <br />(ii) The corporate guarantee shall remain in force unless the guarantor sends notice of <br />cancellation by certified mail to the applicant and to the regulatory authority at least 90 <br />days in advance of the cancellation date, and the regulatory authority accepts the <br />cancellation. <br />(iii) The cancellation may be accepted by the regulatory authority if the applicant obtains <br />suitable replacement bond before the cancellation date or if the lands for which the self - <br />bond, or portion thereof, was accepted have not been disturbed. <br />The Rule requiring the total amount of self -bonds for a company not exceed 25% of tangible net worth, <br />Rule 3.02.4(e)(iv), is analogous to 30 C.F.R. §800.23(d), which states: <br />(d) For the regulatory authority to accept an applicant's self -bond, the total amount of the <br />outstanding and proposed self -bonds of the applicant for surface coal mining and reclamation <br />operations shall not exceed 25 percent of the applicant's tangible net worth in the United States. <br />For the regulatory authority to accept a corporate guarantee, the total amount of the parent <br />corporation guarantor's present and proposed se f bonds and guaranteed self -bonds for surface <br />coal mining and reclamation operations shall not exceed 25 percent of the guarantor's tangible <br />net worth in the United States. For the regulatory authority to accept a non parent corporate <br />guarantee, the total amount of the non parent corporate guarantor's present and proposed self - <br />bonds and guaranteed self -bonds shall not exceed 25 percent of the guarantor's tangible net <br />worth in the United States. <br />As indicated and explained above, the Rules are as stringent as the Federal Rules in 30 C.F.R. §800.23 <br />Self -Bonding. The Division is applying the self -bonding eligibility Rules in a correct and consistent <br />manner and, therefore, no violation exists pursuant to 30 C.F.R. §842.11((b)(1)(ii)(B)(4)(i). <br />CONCLUDING REMARKS <br />In response to the Complaint and based on the information provided above and in Attachments A through <br />E, the Division has determined there is good cause that the possible violations against Tri-State do not <br />currently exist under Colorado's approved program's self -bonding Rules. The Division is requesting that <br />OSMRE find that no further action regarding the Complaint is necessary. <br />This Division is available to meet with OSMRE to discuss the Complaint and the Division's response, if <br />necessary. If you would like to schedule a meeting or need any further information, please feel free to <br />contact me at (303) 866-3567 x8145. <br />