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<br />' ~~ - Prooosed Decision to Adjust Reclamation Bond Amount ~ ~~'°
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<br />-, The Colorado. Division of Minerals and Geology (the Division), has conducted a review of the amount of
<br />reclamation peifortnance bond required for the McChuu Canyon Mine (Permit C-1981-004), operated by
<br />Lodestar Energy, Lac. The operation is an underground coal mine located in Garfield County,
<br />approximately;~19.5 miles north of Loma, Colomdo, along State Highway 139. Coal interest and affected
<br />surface are botli•federal and private. 'Ihe permit area encompasses approtdmately 2,560 acres, with
<br />apprordmately 9.5 acres of surface disturbance.
<br />This review was conducted ptrrsttant to Rule 3.02.2(4) of the Regulations ojlhe Colorado Wined Land
<br />Reclama!lorr Bored jor Coal hTnrng. Based on the perfo^^~n~P bond review, the Division finds that the
<br />current bond amount held is not sufficient to ensure completion of the approved elclama5on plan if the
<br />work had to be performed by the Board, through independent contractors, in the event of forfeiture.
<br />The Division currently holds a cash bond (llreck No. 158930238) in the amount of 5192,537.00. The
<br />Division's review of the amount of performance bond required included a detailed estimate of the cost of
<br />reclamation, and projected a total reclamation cost of 5271,563.00, which exceeds the current bond amount
<br />held. The cost estimate was completed on April 9, 2001, and provided to the operator in a letter of May L8,
<br />2001. The new estimate included updated equipment costs, and new or amended costs for various
<br />reclamation tasks including annual site maintenance, revegetation, equipment mobilization/demobilization,
<br />stnrctural demoGGon, and other reclamation tasks and indirect costs.
<br />Based on the revised cost of reclamation as itemized in the Division's estimate, the Divisioa 5nds that the
<br />current bond amount is insu5'cient, and that, in order to comply with Rule 3.02, an amended bond amount
<br />shall be set at 5271,563.00.
<br />Copies of the proposed decision, including the Division's detailed cost estimate, are on 51e for public
<br />inspection at the Colorado Division of Minerals and Geology, Room 215, Centennial Building, 1313
<br />Shermari Street; Denver, Colomdo 80203, and at the Division's Grand Junction Office, 10l South 3'~, Suite
<br />301. Persons with an interest that may be adversely affected by the proposed decision may request a formal
<br />hearing before the Mined Land Reclamation Board on the proposed decision. Such request must be
<br />received by the Division within thirty (30) days of the initial publication of this notice, must be in writing,
<br />and must slate with reasonable specificity the reasons for the request and the objections to the proposed
<br />decision.
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