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+.., .~ <br /> <br /> <br /> <br />March 8. 1991 <br />hlr. Steven C. Renner, Coal Program Supervisor <br />Ptined Land Reclamation Division <br />Department of Natural Resources <br />215 Centennial Building <br />1313 Sherman Street <br />Denver, CO 80203 <br />Re: Bond Reductions in Colorado <br />Dear Mr. Renner <br />In response to your letter of February 8, 1991, on the above subject, <br />the Office of Surface Mining Reclamation and Enforcement's (OSM) <br />position remains, as stated in the January 9, 1991, memorandum from the <br />Assistant Director, Reclamation and Regulatory Policy, that was <br />forwarded with my letter dated January 25, 1991, that bonds may not be <br />reduced on disturbed lands on which reclamation has begun unless all <br />applicable bond release requirements are met including the retention of <br />the minimum amounts specified for bond releases under the State program. <br />Colorado's bond reduction practices in so far as they allow reductions <br />in bond amounts for completed reclamation in excess of the maximum <br />limits set forth in the State Program for bond releases are not <br />considered to be consistent with the Surface Mining Control and <br />Reclamation Act, Federal regulations, or the State Program. Colorado <br />Rule 3.02.2(4) should not be interpreted as applying to bond reductions <br />for reclamation work accomplished. <br />Downward adjustments in bond may be made under Rule 3.02.2(4) for the <br />circumstances indicated in the OSM memorandum, but not because an <br />operator has completed part of the reclamation. Changes in the amount <br />of the bond to reflect reclamation work completed on disturbed areas <br />must be made in accordance with the bond release procedure under Rule <br />3.03 and limited to the maximum amount specified in Rule 3.03. <br />Accordingly, bond may be released for reclamation work accomplished in <br />amounts up to the regulatory limits of 60 percent release for Phase I <br />reclamation and 85 percent release for Phase II reclamation. <br />Bond may not be adjusted downward (reduced) for completion of activities <br />on disturbed areas such as backfilling and grading, topsoiling, <br />establishing vegetation, etc. These are reclamation activities subject <br />to the bond release procedures and limitations of Rule 3.03. The issue <br />