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<br /> <br />findings and Denial Recommendation <br />of the Colorado Mined Land Reclamation Division <br />for the Carbon Junction Mine <br />Explanation <br />This denial recommendation is made pursuant to Board Order No. 2 issued by the <br />Mined Land Reclamation Board (Board) at the December 14, 1989 Board Hearing. <br />At that hearing, the Board endorsed a Letter of Agreement entered into between <br />the Mined Land Reclamation Division (Division) and Pueblo Coal Incorporated <br />(PCI) concerning PCPs application for renewal of Permit No. C-82-054 for the <br />Carbon Junction tAine. <br />Board Order No. 2 stated: <br />IF THE CONDITIONS OF THE LETTER OF AGREEMENT HAVE NOT BEEN FULFILLED BY <br />JUNE 1, 1990, THE DIVISION SHALL RECOMMEND DENIAL OF THE RENEWAL <br />APPLICATION AND THE MATTER SHALL BE HEARD BY THE BOARD IN FORMAL PUBLIC <br />HEARING AT THE JUNE, 1990 BOARD MEETING. <br />The denial recommendation is based on the fact that conditions "A" and "D" of <br />the December 14, 1989 letter of agreement between PCI and the Division have <br />not been fulfilled. <br />Condition "A" <br />June 1, 1990, the operator will submit to the Division an acceptable <br />As of June 1, 1990, no replacement bond or rider had been submitted to the <br />Division. <br />An additional concern regarding the reclamation bond arose on April 20, 1990, <br />when the Division was notified by the Federal Deposit Insurance Corporation <br />(FDIC) that the Texas American Bank of Fort Worth, Texas which issued the <br />original letter of credit reclamation bond had been closed and taken into <br />receivership. Notice of Violation C-90-012 was issued by the Division on <br />May 2, 1990 for failure to provide performance bond coverage. The abatement <br />specified in the NOV required PCI to secure an acceptable replacement bond by <br />June 1, 1990. As of June 1, 1990, the replacement bond had not been submitted. <br />Asa result of the failure by PCI to supply either an acceptable replacement <br />bond or the required additional bond by June 1, 1990 and pursuant to Rules <br />2.08.5(3)(a)(ii) and (iv), the Division finds that the present surface coal <br />mining and reclamation operation is not in compliance with the Act and the <br />Rules. The operator has not provided evidence that the performance bond in <br />effect for the operation will continue in full force and effect for the <br />renewal period. Further, the Division finds that the operator has not <br />provided sufficient reclamation bond to assure completion of the reclamation <br />plan if the work had to be performed by the Board, through independent <br />contractors in the event of forfeiture. <br />