2019-06-18_INSPECTION - C1980007

• Permit No: C1980007
• IBM Index Class Name: Inspection
• Doc Date: 6/18/2019
• Doc Name: OSM Inspection Report
• From: OSM
• To: DRMS
• Inspection Date: 6/4/2019
• Email Name: LDS
• Media Type: D
• Archive: No

Denver Field Branch
Bond Release Evaluation Report

Company: Mountain Coal Company, LLC
Mine: West Elk Mine
Permit No: C-1980-007
Date(s) of Inspection: June 3 - 5, 2019
Inspection Type: Partial Phase I and Phase III bond release
Weather: Warm and sunny with mostly dry ground conditions
Operator Representative(s): Bob Munz and Kathy Welt
State Official(s): Leigh Simmons
BLM Official(s): None present
USFS Official(s): None present
OSMRE Official: Tom Medlin (#562)

Background
This was a partial Phase I and Phase III bond release inspection at the West Elk Mine in Delta
and Gunnison Counties, Colorado. Mountain Coal Company, LLC (MCC) proposes Phase I and
Phase III bond release on 22.58 acres and 15.25 acres, respectively, of reclamation in support of
the post-mining land use that has been completed in accordance with the terms of its approved
permit. The Colorado Division of Reclamation, Mining and Safety (DRMS) found MCC’s SL-11
and SL-12 bond release applications administratively complete on October 22, 2018 and January
28, 2019, respectively. MCC currently posts reclamation surety bonds with Arch Insurance
Company and Bond Safeguard Insurance Company totaling $15,000,000.00. With these
proposed bond releases, MCC requests 60% of the bond held for Phase I parcels (approximately
$364,058.00) and the remaining bond amount held for Phase III parcels (approximately
$45,000.00). The post-mining land use (PMLU) for the subject parcels is wildlife habitat and
rangeland.

The lands proposed for Phase I bond release lie within portions of portions of Section 33 of
Township 13 South, Range 90 West and Sections 2, 3, and 4 of Township 14 South, Range 90
West of the 6th PM. Reclamation of the subject parcels, to include plugging and abandonment of
mine ventilation boreholes, monitoring wells, and exploration holes, plus backfilling, regrading,
topsoiling, and seeding, was performed in 2016 and 2017. Notification of the proposed Phase I
bond release was published in the Delta County Independent January 2, 9, 16, and 23, 2019.

The lands proposed for Phase III bond release lie within portions of Sections 22, 23, and 26 of
Township 13 South, Range 90 West of the 6th PM. Reclamation of the subject parcels took place
between 2002 and 2006; vegetation sampling was conducted in 2015 and 2018. Sampling data
indicate the revegetated areas proposed for release under SL-11 exceeded requirements for
vegetative cover, species composition, and total herbaceous production in 2015 and 2018.
Notification of the proposed Phase III bond release was published in the Delta County
Independent September 26, October 3, 10, and 17, 2018.