PERMFILE52412

• Permit No: C1981022
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: 3.02 Performance Bond Requirements for Surface Coal Operations
• Media Type: D
• Archive: No

Doc Date:12/11/2001
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• RULE 3
PERFORMANCE BONDING REQUIREMENTS
3.02 -PERFORMANCE BOND REQUIREMENTS FOR SURFACE COAL MINING AND
RECLAMATION OPERATIONS
Consistent with the applicable requirements of thi
reclaiming existing and proposed surface disturbance
mining operations and has posted and maintains a
estimated costs. The following sections briefly
considerations.
section, OMI has estimated the costs of
associated with OMI's ongoing underground
~propriate reclamation surety to address the
discuss related bonding requirements and
3.02.2 -DETERMINATION OF BOND AMOUNT
The amount of the surety bond that OMI has posted and maintains is based on the estimated cost
for the Colorado Mmed Land Reclamation Board to complete reclamation of all mine-related surface
disturbance within the Permit Area using an independent third-parry contractor(s). The estimate of
mine reclamation cosu is based on the level and nature of existing and proposed disturbance and
completion of reclamation consistent with the reclamation plans presented and approved in the Mute
Permit document. The total estimated cost includes appropriate overhead cosu for design, bidding,
and management of the reclamation work, as well as reasonable contractor profit and contingency
fees.
In practice, OMI has initially provided the DMG with preliminary cost estimates For reclaiming
• existing and proposed disturbance. The DMG then completes independent bonding calculations
using the DMG's in-house bond calculation sofrware and returns copies of the resulting computer
spreadsheets for OMI's review and concurrence prior to setting the final bond amount. Copies of
the final approved reclamation bond cost estimates are provided in Exhibit 2.03-E3, Insurance and
Bonding Information.
The bond amount is periodically reviewed and adjusted, as appropriate, to reflect any proposed new
disturbance, as well as any changes in reclamation methods, scheduling, or equipment, labor, or
material costs. Norsnally, the bond amount is reviewed and appropriate adjustments made in
conjunction with Permit Mid-Term Review, Permit Renewal, and at any time that the permit is
revised or modified. OMI has maintained sufficient excess bond surety to provide a buffer between
the estimated reclamation liability and the actual surety amount, allowing for minor adjustments in
the bond amount without having to post additional surety.
3.02.3 -PERIOD OF LIABILITY FOR PERFORMANCE BOND
Because the mine u in asemi-arid region, receiving less than 26 inches of annual precipitation, the
minimum reclamation liabiliry period u 10 yEars, except for any lands where industrial, commercial,
or residential postmining land use(s) are approved. For any areas where these alternative postmining
land uses are approved, the minimum reclamation liability period extends until the perrrtittee
demonstrates that the approved alternative land use has commenced or is likely to be achieved and
the revegetation requirements of Rule 4.15.10(2) or Rule 4.15.10(3) are met.
•
PR04 3.02-1 Revised August 2000