PERMFILE64991

• Permit No: C1981019A
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: RULE 3 PERFORMANCE BOND REQUIREMENTS
• Media Type: D
• Archive: Yes

Colowyo proposed to submiC `a performance bond for the Permit term
~ incrementally in accordance with the disturbance. The proposal was
subsequently accepted by [he Division. Effective July 8, 1992,
Colowyo submitted a Corporate Surety Reclamation Bond with Seab oard
Surety as Principal in the amount of $5,252,595.00. This bond, in
combination with Bond No. 4 6520380BCA provided by Aetna Casualty and
Surety Company noted above, increased Colowyo's bonded amount to $14
million. This $14 million bond amoun t provided a contingency in the
amount of $365,935.00.
Colowyo provided an additional bond amount of $4,117,250.00 prior to
initiating mining activity in the West Pit Area.
During Permit mid-term review (Technical Revision No. 37) Colowyo revised
the estimated liability amount. On August 15, 1996 Colowyo submitted
a Rider to American Home Assurance Bond # 14-95-65 to increase that bond
amount to $11,252,595. This bond, in combination with the Aetna bond
noted above, provided a total reclamation bond amount of $20 million and
a remaining contingency of $432,193.
• During 1997 Permit Renewal RN-03, Colowyo submitted TR-43 which provided
for a recalculation and reduction of the performance bond for the next
5-year Permit term. Due to mine plan changes for Section 9, Section 15,
Section 16 and the reduction in East Pit and West Pit drainage cuts the
recalculated bond amount is $15,670,521 which is $3,914,009.89 less than
the previous estimate of $19,584,530.89. Note that the revised bond
calculation also includes $16,723 for exploration work within the Permit
Boundary (resource confirmation work, see page D-31).
At the time of the TR-43 submittal Colowyo did not submit a rider to the
bonds noted above to reduce the $20, 000, 000 bond amount held by the
Division. It is anticipated that some time after approval of TR-43
Colowyo will provide the Division with a reduced performance bond which
covers the revised calculated liability plus an appropriate contingency
for future liability increases. In the meantime, Colowyo currently has
a contingency of $4,329,479.
3.02-2
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