REV11874

• Permit No: C1981019
• IBM Index Class Name: Revision
• Doc Date: 5/18/2006
• Doc Name: Review Letter
• From: DMG
• To: Colowyo Coal Company L.P.
• Type & Sequence: TR61
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 275
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
18 May 2006
Mr. Tay Tonozzi
Colowyo Coal Mine
5731 State Highway 13
Meeker, CO 81641
Re: Colowyo Mine C-1981-019
Technical Revision 61 Liability Increase
Dear Mr. Tonozzi:
COLORADO
DIVISION O F
MIN SRALS
GEOLOGY
0.ECLANATION•NINING
SAFETY•ECIENCE
Bill Owens
Governor
Russell George
Execlttive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Division has reviewed the record regarding the increase in reclamation liability and
current bond deficiency based on Colowyo Mine's 2005 Midterm review and subsequent
submittal and approval of Technical Revision 61.
On 5 May 2005 the Division issued the 2005 Midterm Review. In that review, it was
noted that the reclamation liability at the Colowyo Mine increased substantially. Based
on the Midterm Review, the Division and CCC held an informal conference at the
Division's offices to discuss the reclamation liability. At that conference, CCC agreed to
submit a Technical Revision addressing the reclamation liability at the Colowyo Mine
(Technical Revision 61).
CCC submitted Technical Revision 61 (TR-61), which addressed the reclamation liability
and bond deficiency at the Colowyo Mine, on 17 November 2005. The Division deemed
TR-61 complete on 23 November 2005 and, after several rounds of adequacy review, the
Division issued a proposed decision to approve TR-61 on 22 March 2006. The legal
notice regarding the proposed decision was published in the Craig Daily Press one time
on 4 April 2006. Pursuant to Rule 2.08.4(6)(b)(iii), there was aten-day public comment
period. The Division did not receive any comments so on 14 April 2006 the proposed
decision to approve TR-61 became final. The proposed decision form and affidavit of
publication for the legal notice for TR-61 are enclosed.
Based on Technical Revision 61, the reclamation liability at the Colowyo Mine is
currently $34, L82,353.00. As of the date of this letter, the Division holds two
reclamation bonds for a total of $19,500,00.00. The two bonds are in the form of
corporate sureties from Liberty Mutual Insurance Corporation (016-029-909 in the
amount of $8,747,405.00 and 016-029-010 in the amount of $10,752,959.00). The
Colowyo Mine is currently under-bonded by the amount of $14,682,353.00.
Office of Office of Colorado
Mined land Rxlamation Active and Inactive Mines Geological Survey