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2022-11-23_GENERAL DOCUMENTS - C1981038
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2022-11-23_GENERAL DOCUMENTS - C1981038
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Last modified
11/29/2022 7:55:12 AM
Creation date
11/29/2022 7:53:10 AM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
C1981038
IBM Index Class Name
General Documents
Doc Date
11/23/2022
Doc Name Note
Findings & Cost Estimate
Doc Name
Proposed Decision and Findings of Compliance
From
DRMS
To
Bowie Resources, LLC
Type & Sequence
SL8
Permit Index Doc Type
Findings
Email Name
RDZ
MAC
Media Type
D
Archive
No
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IV. PROPOSED DECISION <br /> Based on the observations above, the Division proposes to approve BRL's request for a Phase III bond <br /> release for the Bowie No. I Mine. This proposed decision will release the applicant from liability for a <br /> large part of the reclamation work in the West Mine,with the exception of the area where yellow <br /> starthistle was found and where the ponds still require reclamation. The released area is 12.31 acres. <br /> When determining the amount to be released under a bond release request,the Division considers two <br /> factors (listed below) and the proposed release amount is the smaller of the two values. <br /> I. The first consideration is the amount that can be released based on the Reclamation Cost Estimate <br /> using the Division's CIRCES software. This estimate ensure that the release amount does not result <br /> in the Division holding less bond than would be required to complete reclamation of the site in the <br /> event of a forfeiture(Rule 3.03.1(3)3(d)). <br /> 2. The second consideration is Rule 3.03.1(2) discussed in detail below. <br /> The amount that can be released based on the Reclamation Cost Estimate(see enclosure) is $60,430. <br /> Rule 3.03.1(2)allows for a percentage of release of liability for three phases: <br /> • Phase I release allows for a maximum of 60 percent of the total liability for the subject area. <br /> • Phase II release allows for an additional 25 percent(for total of 85 percent). <br /> • Phase III release allows for an additional 15 percent(for total of 100 percent). <br /> For a given bond release application,the amount is also limited by the size of the subject area. The <br /> Division uses a straight percentage of area requested for release divided by total area. For SL-08, after <br /> the"carve out" of 0.79 acres, this application requests Phase III release on 12.31 acres out of a total of <br /> 17.6 acres for the West Mine. The result is 69.9 percent of the total area. <br /> The reclamation liability for the Bowie No. I Mine prior to any approved bond releases was calculated <br /> with Permit Renewal No. 4 (RN-04)to be$6,879,590.12. Additional MRs and TRs added$118,677.31 <br /> for a total of$6,998,267.43. The breakdown between the three areas(East Mine,West Mine, and <br /> Loadout) shown in Table 1 is based on details within the Reclamation Cost Estimate for RN-04. The <br /> values for each area/phase combination(e.g., West Mine/Phase III) are the maximum amounts that <br /> should be considered when assessing the appropriate release of liability for a particular bond release. <br /> Pennit Number C-1981-038 Page 10 of 12 <br />
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