2018-11-05_GENERAL DOCUMENTS - C1981044

• Permit No: C1981044
• IBM Index Class Name: General Documents
• Doc Date: 11/5/2018
• Doc Name Note: For RN7
• Doc Name: Proposed Decision and Findings of Compliance
• From: DRMS
• To: Moffat County Mining, LLC
• Permit Index Doc Type: Findings
• Email Name: RAR
• Media Type: D
• Archive: No

Williams Fork Mines Prepared by: R. Reilley M.S. GISP
C1981044 5 November 2018

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8. The permittee does not control and has not controlled mining operations with a demonstrated
pattern of willful violations of the Act of such nature, duration, and with such resulting
irreparable damage to the environment as to indicate an intent not to comply with the provisions
of the Act (2.07.6(2)(h)).

9. Pursuant to Rule 2.07.6(2)(i), the Division finds that the Williams Fork Mines will not be
inconsistent with other operations anticipated to be performed in areas adjacent to the proposed
permit area. Therefore, the application is in compliance with the requirements of this section for
the Williams Fork Mines.

The Trapper Mine is adjacent to the Williams Fork Mines. The Trapper Mine has completed
coal extraction from the Colt Pit, located above the No. 6 Mines underground workings in T6N,
R91W, Section 32. The seams mined were stratigraphically separated by an excess of 1,000 feet.
Trapper Mine completed surface mining in the Colt Pit prior to any mining occurring within the
No. 6 Mine in areas which could have potentially caused subsidence disruption of the
stratigraphic section mined within the surface pit. Backfilling, grading, topsoiling, and seeding
of the Colt Pit occurred during the fall of 1993. The underground workings of the No. 6 Mine
progressed into T5N, R91W, Section 5, during the fall of 1993.

10. The Division currently holds a bond of $4,621,000.00 through Lexon Insurance Company.
The Division estimated the cost of reclamation to be $4,713,447.09 on 1 November 2018. The
current amount of bond held is not adequate and MCM will need to submit additional bond in the
amount of $92,447.09.

The above bond amount reflects the Division's projection of reclamation costs for worst-case
disturbance which could occur during the proposed permit term upon resumption of operations.
It also reflects 100 percent bond release from reclamation work completed by the operator in
1990 at the Craig Town Loadout area of the mine. This release was approved by the Division
during previous permit terms (2.07.6(2)(j)).

11. The Division has made a negative determination for the presence of prime farmland within
the permit area. The decision was based on a letter from the Soil Conservation Service dated
February 2, 1982. Although soil types 03B and fine sandy loam O-56 are found adjacent to the
Williams Fork River, this area is not considered prime farmland. Approximately 50 percent of
the 03B soil was disturbed prior to the enactment of SMCRA and is considered an industrial site.
Therefore, no areas designated as prime farmland are found within the Williams Fork Mines
permit area (2.07.6(2)(k)).

12. Based on information provided in the application, the Division has determined that three
alluvial valley floors exist within the permit or adjacent area. The alluvial valley floors are
known as Williams Fork alluvial valley floor, Yampa River/Big Bottom alluvial valley floor, and
Yampa River/Round Bottom alluvial valley floor. Development mains for the No. 6 Mine were
constructed under the Williams Fork River and its associated alluvial valley floor (2.07.6(2) and
2.06.8(3)(C)). No impacts to the river or the alluvial valley floor were observed after the mains
were constructed. No development is currently proposed for the Yampa River/Big Bottom or