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COLOWYO COAL COMPANY L. P. <br />5731 State Highway 13 <br />Meeker, Colorado 81641 <br />(970) 8241572 <br />(970) 824-1598 FAX <br />James A. Klger <br />Senior Environmental Engineer <br />July 2, 1997 <br />iii iiiiiiiiiiiiiiii <br />~= ~C/1/lC4'0~ <br />/~ .Energy. <br />C0~0 000a(COdf~01{1~ li.~. ~ '~ ;~.' <br />REDEIV~D <br />Mr. Byron Walker ilUl a.~ <br />Environmental Protection Specialist 1881 <br />Colorado Division of Minerals and Geology Blyylgry of <br />215 Centennial Building A1lnortr,~ a ~ke1Hay <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />RE: Colowyo Coal Co. L. P., (C-81-019) <br />Request for Technical Revision No. 43 <br />Recalculation and Reduction of Performance Bond <br />Dear Mr. Walker: <br />Attached please find a request for Technical Revision No. 43 to the Colowyo Coal Co. <br />L.P., Permit C-81-019. TR-43 provides a mechanism for modifying the Colowyo Performance <br />Bond pursuant to the 5-year Permit term renewal RN-03. <br />If you will recall, the Permit Renewal Application (RN-03) form was previously submitted <br />to the Division under a separate cover on April 9, 1997. Subsequently, on April 22, 1997 <br />Colowyo submitted Technical Revision No. 42 which provided the mechanism for facilitating <br />miscellaneous Permit changes associated with RN-03. <br />The purpose of this TR-43 application is to provide an adjustment of the bond liability <br />to cover the next 5-year Permit term. In accordance with Rule 3.02.2(5) a formal request for a <br />reduction of the cost estimate is also included in today's submittal. The attached revised <br />Exhibit 13 provides supporting information for the recalculated bond in the amount of <br />$13,219,488. which is $6,348,319.89 less than the current estimate of $19,567,807.89. Since <br />the Division currently holds a total Pertormance Bond in the amount of $20,000,000, the bond <br />adjustment provides a contingency of $6,780,512. As such it will be unnecessary to submit <br />additional bond. We anticipate that in the near future Colowyo will provide the Division with a <br />reduced Performance Bond which covers the revised calculated liability plus some contingency <br />for future liability increases. <br />Revised Permit pages 3.02-1 through 3.03-1 are also provided for inclusion into Volume <br />1 of the permit application package. These pages provide a historical perspective regarding the <br />changes to the Performance Bond during the life of the Colowyo operation. <br />Revised Exhibit 13, Tab A through D provide 1) the specific detail of the performance <br />bond calculation and 2)include the circumstances which will reduce the maximum estimated <br />cost to the Division to complete the reclamation responsibilities and therefore warrant a <br />reduction in the bond amount. Tab E from the previous version of Exhibit 13 will remain <br />