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Based upon a review of the mine permit,the applicant's bond release application, and site inspections,the <br /> Division finds that Oxbow Mining, LLC has successfully completed all surface coal mining reclamation <br /> operations in accordance with the approved reclamation plan and met all requirements of the Act and the <br /> Rules. <br /> IV. PROPOSED DECISION <br /> Based on the observations above,the Division proposes to approve Oxbow Mining,LLC's request for a <br /> Partial Phase I, II and III bond release for the Elk Creek Mine. This proposed decision will release the <br /> applicant from all reclamation liability for the 31.12 acres identified in Table 1. <br /> The Division currently holds a performance bond of$4,500,000 for the Elk Creek Mine. The most <br /> recent update of reclamation liability for the site prior to SL-1 was$4,323,977.80. This will be the <br /> figure used to calculate the maximum dollar amount eligible for release based on the conditions of Rule <br /> 3.03.1(2),which states that up to 60% of the bond can be released at Phase I,up to 25%can be released <br /> at Phase H and the remaining 15%can be released at Phase III. Table 2 shows the bond release history <br /> at the Elk Creek Mine,with the acres that have achieved each phase of bond release. <br /> Table 2 <br /> Elk Creek Mine C-1981-022 Bond Release History <br /> Bond Release Acreage <br /> Total Phase I Phase I Phase II Phase II Phase III Phase III <br /> Disturbed Released Remaining Released Remaining Released Remaining <br /> SL-1 239.2 19.4 219.8 0 239.2 0 239.2 <br /> SL-2 239.2 138.74 81.06 72.69 166.51 2.33 236.87 <br /> SL-4 239.2 5.7 75.36 5.7 160.81 16.4 220.47 <br /> SL-3 239.2 0 75.36 50.44 110.37 0 220.47 <br /> SL-5 239.2 2.2 73.16 2.2 108.17 31.12 189.35 <br /> Table 3 has been re-worked for SL-5 from previous bond release findings documents. The table shows <br /> the maximum amount of bond eligible for release with SL-5 based on the acreages in Table 2, but also <br /> tracks the minimum total bond that must be held by the Division based on Rule 3.03.1(2). <br /> Prior to SL-5 the site-wide Reclamation Cost Estimate (RCE)was recalculated with MT-8/SR-2. The <br /> Division estimated that the cost to complete remaining reclamation work at the mine would be <br /> $1,755,100. The Division erroneously stated that this dollar amount would also be the new Required <br /> Surety; this was in error,as it did not account for the requirements of Rule 3.03.1(2)which establishes a <br /> minimum amount of bond to be held. Based on the figures shown in Table 3,the minimum amount of <br /> bond to be held following the approval of SL-5 is $1,795,770.40,which exceeds the estimated cost to <br /> reclaim the site. <br /> C-1981-022 Page 14 of 16 <br />