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Table 1
<br /> Maximum Bond Release Amounts per Rule 3.03.1(2)
<br /> East Mine West Mine Loadout Total
<br /> Phase 1 - 60% $1,759,323.06 $635,764.19 $1,803,873.21 $4,198,960.46
<br /> Phase II - 25% $733,051.28 $264,901.75 $751,613.84 $1,749,566.87
<br /> Phase III - 159 $439,830.77 $158,941.05 $450,968.30 $1,049,740.12
<br /> Total 1 $2,932,205.11 $1,059,606.99 1 $3,006,455.35 1 $6,998,267.43
<br /> Table 2 presents the proposed release amounts by phase, calculated using the percentage of area and the
<br /> allowable percentages of release (25 percent for Phase H and 15 percent for Phase III). For example,the
<br /> East Mine Phase III release is calculated as follows:
<br /> $2,932,205.11 * 10.65% * 15%=$46,841.98.
<br /> Table 2
<br /> Proposed Release Under SL-07
<br /> East Mine West Mine Loadout
<br /> Propose
<br /> Proposed %of Proposed %of d %of
<br /> Released Acres Acreage Release Acres Acreage lReleased Acres Acreage
<br /> Phase II $31811.87 0.51 0.52% $0.00 0.00 0.000/0 $0.00 0.00 0.00%
<br /> Phase III $46,841.97 10.38 10.65% $0.00 0.00 0.000/0 $0.00 0.00 0.00%
<br /> Tota 1 $50,653.84
<br /> The following three paragraphs and Table 3 are included to retain historical information regarding the
<br /> bond release process at the Bowie No. I Mine. This information is not directly pertinent to SL-07.
<br /> The Division conducted a review ofprevious bond release decisions(SL-02, SL-03, and SL-04)during the
<br /> SL-05 bond release. The Division determined that the amount ofliabilitypreviously released was in excess
<br /> of the amounts allowed by Rule 3.03.1(2). A comparison of previously released amounts relative to the
<br /> maximum amounts allowed is shown in Table 3.
<br /> The maximum release amount for SL-02 was based on the$6,879,590.12 RN-04 total. With the approval
<br /> of SL-02, the Division granted Phase I release on 13.1 acres and approved the release of$709,004.00.
<br /> However, the release total should have been no more than $473,199.29 (74.43% (13.1 acres/17.6 acres)
<br /> of 60%of the original RN-04 liability for the WestMine of$1,059,606.99). Therefore, the Division "over-
<br /> released"$235,804.71 ($709,004.00-$473,199.29)when it approved SL-02.
<br /> With the approval of SL-03 and SL-04, the Division released$1,713,346.70. However, the total release
<br /> amount associated with the SL-03 and SL-04 approvals should have been no more than $1,204,977.69
<br /> (71.38%(69.6 acres/97.5 acres)of 60%of the original RN-04 liability for the East Mine of$2,813,527.80).
<br /> Therefore, SL-03 and SL-04 "over-released" a total of$508,369.01 ($1,713,346.70 - $1,204,977.69).
<br /> Note that the value of$2,813,527.80 is shown in Table 6 below.
<br /> Permit Number G1981-038 Page 11 of 14
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