APPCOR11927

• Permit No: C1982054
• IBM Index Class Name: Application Correspondence
• Doc Date: 11/2/1989
• Doc Name: RECOMMENDATION AND FINDINGS FOR DENIAL OF A PERMIT RENEWAL FOR PUEBLO COAL INC CARBON JUNCTION MINE
• Media Type: D
• Archive: No

_ Findings of the
Colorado Mined Land Reclamation Division
for the
Carbon Junction Mine
Explanation of Findings
Pursuant to Rule 2.08.5(3) of the Regulations of the Colorado Mined Land
Reclamation Board for Coal Mining, and the approved state program, the Mined
Land Reclamation Division or the Board must make specific written findings
prior to issuance of a permit renewal. These findings are based on
information made available to the Division that demonstrates whether the
applicant will be able to operate in compliance with the Colorado Surface Coal
Mining Reclamation Act and the Regulations promulgated pursuant to the act.
The findings in the following sections required by Rule 2.08.5(3) are listed
in accordance with that Rule.
This findings document is updated upon permit renewal, which occurs every five
years for most mines. This is the renewal findings document for the Carbon
Junction Mine. The following findings were reevaluated and updated to reflect
changes which have occurred during the past permit term.
Findings Required by Rule 2.08.5(3)
Pursuant to Rule 2.08.5(3)(a)(iv), the Division finds that Pueblo Coal
Company, Inc. (PCI) has not provided sufficient reclamation bond to
assure the completion of the reclamation plan if the work had to be
performed by the Board, through independent contractors, in the event of
forfeiture.
In a renewal adequacy letter dated January 19, 1989, the Division
indicated to PCI that the Division staff had re-evaluated the estimated
cost of reclamation for bonding purposes as required by statute and that
the revised cost estimate exceeded the currently held bond amount. The
existing bond amount is $931,150.00, while the Division's recent worst
case estimate based on a thorough investigation utilizing current aerial
photographs, field measurements, and operator submitted maps and reports
was $1,125,300.00, an increase of $194,150.00 (approximately 20%). The
letter indicated that, unless additional information were submitted by
PCI justifying a lower cost estimate, the bond would need to be increased
accordingly.
PCI has indicated that, due to their bankruptcy status they are unable to
increase the bond amount and do not anticipate being able to do so until
a lawsuit filed by their majority owner is resolved. In a letter of
September 15, 1989, PCI submitted revised reclamation cost calculations.
The calculations were based on the assumption that Pueblo Coal Inc. would
be doing the reclamation with their own employees, thereby reducing wage