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<br /> <br />®~C A <br />®~~ <br />January 25, 1991 <br />Mr. Fred R. Banta, Director <br />Mined Land Reclamation Division <br />Department of Natural Resources <br />215 Centennial Building <br />1313 Sherman Street <br />Denver. CO 80203 <br />Re: Bond Adjustment/Reduction Practices in Colorado <br />Dear Mr. Banta: <br />The Albuquerque Field Office (AFO) has previously informed you that the <br />Office of Surface Mining Reclamation and Enforcement (OSM) was reviewing <br />bond reduction and adjustment practices of [he Mined Land Reclamation <br />Division (MLRD). OSM has now determined that MLRD's bond adjustment/ <br />reduction implementation practices are not in accordance with the <br />Surface Mining Control and Reclamation Act. A copy of an OSM memorandum <br />to the Deputy Director for Operations and Technical Services (dated <br />January 9, 1991), making that finding is enclosed for your review. In <br />making the finding, OSM reviewed information pertaining specifically to <br />bond reduction practices undertaken by MLRD at the Grassy Gap Mine in <br />1990 (Permit No. C-039-81), the Bourg Strip Mine in 1990 (Permit No. C- <br />021-81), and the Energy No. 3 Middle Creek Mine in 1988 (Permit No, C- <br />062-84). <br />As indicated in the enclosed memorandum, reductions in bond for <br />completed reclamation activities are not permissible. Reductions in <br />bond amount for reclamation work performed on disturbed areas can only <br />be achieved through the formal bond release procedures. Release of bond <br />must also adhere to [he Colorado regulatory requirement maximums of 60 <br />percent release for Phase I reclamation and 85 percent release for Phase <br />II reclamation. <br />AFO requests that MLRD correct its bond adjustment/reduction practices <br />and re Frain from similar bond reductions in the future for any <br />reclamation of disturbed areas. Also, AFO requests that MLRD direct <br />operators to reinstate bonds to appropriate amounts for those mines in <br />