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RULE 3 PERFORMANCE BOND REQUIREMENTS <br />3.01 INTRODUCTION <br />This rule sets forth the minimum requirements and responsibilities for filing and maintaining <br />performance bonds for surface coal mining and reclamation operations. This rule includes <br />minimum requirements for determining amounts and periods of liability for performance <br />bonds. Likewise, it establishes minimum standards for the form, conditions, and terms for <br />performance bonds, <br />3.02 PERFORMANCE BOND REOUIREMENTS FOR SURFACE COAL MINING <br />AND RECLAMATION OPERATIONS <br />Colowyo initially provided a Corporate Surety Reclamation Bond in the amount of <br />$4,500,000 on November 4, 1982 to cover its bonding liability of $4,31 1,643. On January 15, <br />1986 Colowyo submitted a Rider to its existing bond increasing the bonded amount to <br />$S,SOO,000,in response to the midterm review process. <br />At permit renewal RN-01 Colowyo provided a Rider to the bond, effective August 21, 1987, <br />which increased the bonded amount to $8,747,405. The calculated bond liability resulting <br />from the August 21, 1987 permit renewal and the October 1987 Bond Release approval <br />totaled $6,814,597. <br />The Technical Revision No. 14 for the mining of Section I1, approved by the Division <br />January 25, 1989, required an additionai bond liability of $1,3(4,000, resulting in a revised <br />bonding liability of $6,814,597 At that time the remaining contingency of $618,808 was left <br />available for future consideration. <br />The bond was then reviewed once more as. part of the PR-01 and RN-02 application of May <br />10, 1991. Estimated reclamation costs for the existing and planned disturbance in the East <br />Pit, Section 16 Pits and facilities areas during the 1992-1997 permit term was calculated to be <br />$13,412,702. Additional liabilities included $221,363 for Phase I and Phase lI release areas <br />and $4,117,250 for future West Pit expansion. The total liability was estimated at <br />$17,751,315. <br /> <br />3.02-1 Revision Date: 3/19/98 <br />Revision No.: TR-43 <br />