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r <br />2 <br />Furthermore, the preamble to the bond adjustment provisions of 30 CFR 800.15(c) at 48 <br />FR 32945 (July 19, 1983) states that: <br />OSM has not included in the final rule any provision characterizing as an <br />adjustment any reduction in bond amount for reclamation work performed on <br />disturbed areas since bond for disturbed azeas can only be released or reduced <br />through the formal release procedures of [30 CFRj 800.40. <br />To be approved under the bond adjustment provisions of 30 CFR 800.15(c), a proposed <br />bond reduction must be justified solely upon either changes in the acreage to be affe ted <br />(not the acreage remaining to be reclaimed) or a demonstration that the reclamation <br />cost estimates upon which the current bond amount is based are no longer valid for <br />reasons other than the performance of reclamation work. Any bond reduction requested <br />as a result of reclamation work performed must be processed as an application for bond <br />release under 30 CFR 800.40; the request cannot be approved unless the criteria <br />specified in 30 CFR 800.40(c) and section 519(c} of SMCRA, or, in Colorado's case, <br />Colorado Rule 3.03.1(2), are satisfied. The remaining bond amount must meet the <br />minimum levels established in these program provisions. <br />Finally, the Field Office questions whether the maximum of bond that may be released <br />Cor the subject site under Colorado Rule 3.03.1(2) should be calculated based on the <br />$446,680 actually posted or the $572,000 required as a result of the midterm review. <br />This issue is not addressed in the Federal regulations or their preambles. However, <br />since the company has closed and reclaimed the mine in lieu of posting the additional <br />bond, it would appear reasonable to base this calculation on the amount of bond <br />actually posted. In any case, the amount of bond released must conform to the <br />percentage limits established in Colorado Rule 3.03.1(2); in addition, the amount <br />retained must be adequate to cover the cost of having a third party reestablish the <br />revegetation, as required by Colorado Rule 3.03.1(3}. <br />Please contact Dennis Rice (FTS 268-2829) with any questions pertaining to this review. <br />