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Colowyo proposed to submit a performance bond for the permit term incrementally in <br />accordance with the disturbance. The proposal was subsequently accepted by the Division. <br />Effective July 8, 1992, Colowyo submitted a Corporate Surety Reclamation Bond with <br />Seaboard Surety as Principal in the amount of $5,252,595. This bond, in combination with <br />Bond No. 46S20380BCA provided by Aetna Casualty and Surety Company noted above, <br />increased Colowyo's bond amount to $l4 million. This $14 million bond amount provided a <br />contingency in the amount of $365,935. Colowyo provided an additional bond amount of <br />$4,117,250 prior to initiating mining activity in the West Pit Area. <br />During Permit Mid-Term Review (Technical Revision No. 37) Colowyo revised the <br />estimated liability amount. On August 15, ]996 Colowyo submitted a rider to American <br />Home Assurance Bond #14-95-65 to increase that bond amount to $1 ],252,595. This bond, <br />in combination with the Aetna bond noted above, provided a total reclamation bond amount <br />of $20 million and a remaining contingency of $432,193. <br />During 1997 Permit Renewal RN-03, Colowyo submitted TR-43 which provided for a <br />recalculation and reduction of the performance bond for the next 5-year permit term. Due to <br />mine plan changes for Section 9, Section 15, Section 16, and the reduction in East Pit and <br />West Pit drainage cuts, the recalculated bond amount is $15,670,521 which is $3,914,009 less <br />than the previous estimate of $19,584,530. Note that the revised bond calculation also <br />includes $(6,723 for exploration work within the Permit Boundary (resource confirmation <br />work, see page D-31). <br />At the time of the TR-43 submittal, Colowyo did not submit a rider to the bonds noted above <br />to reduce the $20,000,000 bond amount held by the Division. Colowyo subsequently <br />provided the Division with a reduced performance bond reflecting the revised calculated <br />liability plus an appropriate contingency for future liability increases. With modification of <br />Bond #14-95-65, total bond liability was the $15,670,521, noted above, and total bond <br />liability coverage was $16,000,000, resulting in a contingency amount of $329,479. <br /> <br />3.02-2 Revision Date: 5/8/03 <br />Revision No.: TR-56 <br />