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<br />Mountain Coal Company
<br />RECEIVED
<br />December 07, 2018
<br />DEC 14 2018
<br />Mr. Leigh Simmons Division of Reclamation,
<br />Colorado Department of Natural Resources Mining & Safety
<br />Division of Reclamation, Mining and Safety
<br />1313 Sherman Street, Room 215
<br />Denver, CO 80203
<br />Mountain Coal Company, LLC
<br />West Elk Mine
<br />5174 Highway 133
<br />Somerset. CO 81434
<br />Kathleen G. Welt
<br />Environmental Engineer III
<br />kwelt(cDa rchcoal.com
<br />phone: 970 929 2238
<br />Re: Mountain Coal Company, LLC, West Elk Mine; Permit No. C-1980-007; Request for Phase I Bond
<br />Release of Drill Holes, Pads and Roads in the Dry Fork of the Minnesota Creek Area
<br />Dear Mr. Simmons:
<br />Attached is Mountain Coal Company, LLC's (MCC) application for Phase I Bond Release of several
<br />exploration holes, monitoring wells and mine ventilation boreholes (MVB) and associated pads and roads.
<br />The proof of publication of the public notice and return receipts for the delivery of the landowner letters
<br />will be provided to the Division after they are received by MCC.
<br />MCC requests Phase I Bond Release of about $364,058.00 for four (4) exploratory drill holes, nine (9)
<br />monitoring wells, and thirty eight (38) mine ventilation boreholes (MVB), and associated pads and roads
<br />that have been reclaimed within the Dry Fork of the Minnesota Creek area (see Tables I & II). These
<br />sites are located on National Forest System lands within portions of Section 33 of Township 13 South,
<br />Range 90 West and Sections 2, 3, and 4 of Township 14 South, Range 90 West. The MVB sites and
<br />roads were necessary for temporary mine ventilation.
<br />MCC's mining and reclamation permit was originally issued in July 1981, and subsequently renewed in August
<br />1986, January 1993 (effective August 1991), July 1996, July 2001, April 2007 (effective July 2006), and
<br />November 2011 (effective July 2011.) MCC is currently undergoing a five-year permit renewal process that
<br />would extend the permit term to July 31, 2021. MCC's five-year permit area contains lands in Sections 9-11,
<br />and 13-36, T13S, R90W, 6th PM; Sections 23-26, T13S, R91 W, 6th PM, and Sections 1-5, 8-12,14-16 and 21-
<br />23, TI 4S, R90W, 6th PM in Delta and Gunnison Counties. The location of the lands can be found on the
<br />USGS 7.5 minute Somerset and Minnesota Pass quadrangle topographic maps. The current permit area
<br />encompasses approximately 19,854.9 acres.
<br />MCC holds reclamation surety bonds from Arch Insurance Company and Bond Safeguard Insurance
<br />Company (Bond numbers SU 1116159 and 5010562, respectively) totaling $15 million. The reclamation
<br />cost estimates for the reclaimed sites that are part of this request are covered by these bonds.
<br />Reclamation of the various site locations and roads within MCC's permit area was completed in 2016
<br />through 2017. This included the plugging and abandonment of fifty one (5 1) mine ventilation boreholes,
<br />exploration drill holes and monitoring wells, as well as backfilling and regrading of the associated pad
<br />locations and access roads. The sites and roads proposed for bond release have been revegetated and
<br />stabilized using various methods of seeding, fertilizing, mulching and installation/application of straw
<br />mulch and erosion control blankets. Approximately 22.58 total acres have received these treatments.
<br />As agreed to in email correspondence dated January 25, 2011 (See Appendix H of SL -10), MCC's
<br />Reclamation Photograph Reports of the reclaimed MVB sites and associated roads are sufficient for
<br />documenting that all facilities have been removed from each site and the sites have been regraded to
<br />approximate original contour. Therefore, drawings showing cross-sections of the backfilled and graded
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