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Bear Coal Company <br />P.O. Box 1754 <br />Paonia, CO 81428 <br />C-81-038 <br />Bear No. 3 Mine <br />7/20/2004 <br />Partial bond release inspection <br />Mitch Rollings, OSM <br />Joe Dudash, DMG <br />Sandy Brown, DMG <br />William Bear, Sr., Pet'mittee <br />Jim Stover, Consultant <br />Jim Kiger, Oxbow Mining II..C, landowner <br />I-Ienry Barbe, Arch Coal Co., I.artdowncr <br />Bear Coal Co. (BCC) submitted an application for Phase I bond release for 8.4 acres, <br />dated 1.1/26/2003, to DMG for review. DMG identifies this application for the Bear No.3 <br />Mine as SI-03. BCC submitted the required proof of publication on 1/6/04. DMG ruled <br />the application complete on 1/16/2004. <br />Phase I bond release may be granted when the permitter has demonstrated that they have <br />successfully completed baclvilling, grading, and drainage control in accordance with the <br />approved permit. <br />OSM does not believe the pcrmittee has successfully met the requirements for a Phase 1. <br />bond release for the Bear No.3 Mine for the following reasons: <br />Stability of backfilled material. <br />The field inspection revealed conditions that bring stability of the backfll led material into <br />question. There is current physical and past historical evidence that a mine fire exists. <br />The fire has physically manifested itself in the nature of cracks, fissures, or vents from <br />which steam or smoke is emitted. One can also smell the odor of burning coal. DMG <br />investigated the site with regards to a mine Fire in October 2003. DMG's findings of that <br />investigation are documented in a memo from Steve Renner (DMG) to Joe Dudash dated <br />11/7/2003. The permittee has been provided a copy of the memo. The conditions <br />documented in the memo continued to exist at the time of this bond release inspection. <br />OSM also views the surFace indicakions of the mine fire as a safety issue. While surface <br />temperatures on the backfill were not taken during this inspection, OSM has no reason to <br />believe the high temperatures recorded during the 10/2003 DMG evaluation no longer <br />exist. Absent any definitive proof from the pcrmittee that the fire does not underlie the <br />backfilled material, there is also a question of voids that may have developed from the <br />b0 'd 9b9IbbB£OE 'ON Xd.d au! 1° 1daP Wd bg;[0 I8d 9002-bI-Ndf <br />