2018-10-18_GENERAL DOCUMENTS - C1981019

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Proposed Decision and Findings of Compliance October 2018 Partial Phase II and III Bond Release SL-14 Page 13 (Map 19 and 19B) and remain stable to date. Proper blending of reclaimed areas with undisturbed slopes was achieved and reconstructed drainages are stabilized and in good condition. Topsoil has been replaced in accordance with the approved reclamation plan, the areas have been reseeded as required and the bond release areas have been reclaimed for a post- mining land use of rangeland and wildlife habitat. Colowyo has successfully demonstrated that the cover, production, species diversity and woody plan density establishment on the Phase III bond release areas meets or exceeds the reclamation success standards on the reference areas. The Division finds that Colowyo has achieved the requirements for Partial Bond Release on 822.4 acres of Phase II and 222.6 acres of Phase III at the Colowyo Mine. V. PROPOSED DECISION Based on the observations in Section IV above, the Colorado Division of Reclamation, Mining, and Safety proposes to approve Colowyo’s request for a partial Phase II and III Bond Release for the Colowyo Mine. This proposed decision will release the applicant from reclamation liability on 822.4 acres of Phase II and 222.6 acres of Phase III of the site, as shown on Figure 1 and Figure 2 at the end of this document. The Division holds a performance bond in the amount of $108,025,721.00 for the Colowyo Mine. The Division has calculated the amount associated with the Partial Phase II and III Bond release area and it totals $1,352,977.00. However, during the Division’s review, it was discovered that $381,423.00 was released over the allowable 60% associated with the Phase I bond release process for the applicable SL-14 area. Due to this, the Division will be withholding the amount of $381,423.00 to ensure Rule 3.03.1 is met. The total releasable amount with SL-14 is $971,554.00. This Partial Phase II and III Bond Release is a release of the reclamation liability in the SL-14 area. The Division estimates its cost to complete remaining reclamation work at the Colowyo Mine to be $106,056,792.00. This amount is sufficient to assure completion of the remaining reclamation work to the applicable area if the work had to be performed by the Division, including the cost of reestablishing vegetation on any revegetated areas, should those areas fail. With the releasable amount $971,554.00, the Division will still hold a bond in the amount of $108,025,721.00 which is $1,968,929.00 more than the minimum required liability to fully reclaim the remaining disturbed areas at the Colowyo Mine. Any person with a valid legal interest which might be adversely affected by this proposed decision may request a formal public hearing before the Mined Land Reclamation Board in accordance with Rule 3.03.2(6). Public notice of this proposed decision will be published twice in the Craig Daily Press as soon as possible. Requests for public hearing must be submitted to the Division in writing within thirty days of the first publication in the Craig Daily Press. If no hearing is requested within those thirty days, the Division's decision will become final. This concludes the Proposed Decision and Findings of Compliance for the Colowyo Mine Partial Phase II and III Bond Release SL-14.