2019-10-18_REVISION - C1981022 ‎(17)‎

• Permit No: C1981022
• IBM Index Class Name: Revision
• Doc Date: 10/18/2019
• Doc Name: Notice of Proposed Decision
• From: DRMS
• To: Oxbow Mining, LLC
• Type & Sequence: SL1
• Email Name: LDS
• Email Name: JDM
• Media Type: D
• Archive: No

IV. PROPOSED DECISION
Based on the observations above,the Division proposes to approve Oxbow Mining, LLC's
request for a Partial Phase I bond release for the Elk Creek Mine. This proposed decision will
release the applicant from liability for backfilling, grading, and drainage reestablishment for the
land inside the parcels shown on the map accompanying the SL-1 application.
Elk Creek Mine C-1981-022
Bond Release History
Bond Release Acre a e
Total Phase I Phase I Phase II Phase II Phase III Phase III
Disturbed Released Remaining Released Remaining Released Remaining
SL-1 239.2 19.4 219.8 0 239.2 0 239.2
Table 1: Bond Release History
The original performance bond for the Elk Creek Mine prior to this SL-1 bond release was
$4,323,977.80. For the partial Phase I portion of this SL-1 bond release, Rule 3.03.1(2)(a) states
that the Division can release up to 60% of the entire amount. The 19.4 acres that are requested
for Phase I bond release make up approximately 8.11% of the 239.2 total disturbed acres.
$2,594,386.68 constitutes 60% of the original liability (60% of$4,323,977.80). Per Rule
3.03.1(2)(a), the Division can release up to $210,404.76 (8.11% of$2,594,386.68)for this SL-1
partial Phase I bond release.
The Division currently holds a performance bond of$4,500,000 for the Elk Creek Mine. The
most recent update of reclamation liability for the site prior to SL-1 is $4,323,977.80. The
minimum amount that must be retained in accordance with Rule 3.03.1(3)is $4,113,573.04
($4,323,977.80 - $210,404.76 (SL-1 Phase I)). The Division determined the estimate to
complete remaining reclamation work at the Elk Creek Mine to be $3,865,886. The Division
proposes to release $210,404.76 associated with the Phase I SL-1 bond release.
Maximum Bond Release Amounts per Rule 3.03.1(2)
SL-1 (19.4 acres) Total (239.2 acres)
Phase 1 -60% $210,404.76 $2,594,386.68
Phase 11 -25% $87,668.65 $1,080,994.45
Phase III - 15% $52,601.19 $648,596.67
Total $350,674.60 $4,323,977.80
Table 2: Maximum Bond Release Amounts
C-1981-022,SL-1 Page 17 of 19