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Pursuant to Rules 3.02.1(2), (3), (4) and (5) including (a), CCC must submit a bond <br />covering the amount of reclamation liability. Rule 3.02.1(2) states "(a)fter an application <br />for a permit, or for a revised permit, has been approved by the Division or the Board <br />under Rule 2, but before such permit is issued, the applicant shall file with the Division... <br />a performance bond payable to the State of Colorado." Rule 3.02.1(2) states "An <br />operator shall not disturb surface acreage... prior to the approval of the permit and receipt <br />of approval from the Division of a performance bond covering the surface agreage to be <br />affected." Rule 3.02.1(3) states "(t)he performance bond shall cover the area of land <br />within the permit area upon which surface coal mining and reclamation operations are to <br />be initiated and conducted." Rule 3.02.1(4) states "(l)iability on the performance bond <br />shall continue until... the permittee is released from any further liability pursuant to <br />3.03." Rule 3.02.1(5) and (a) states "(a)fter the amount of the bond has been <br />determined... the applicant shall file... the entire performance bond amount required <br />during the term of the permit <br />The above-cited Rules do not give a specific time frame for submittal of a performance <br />bond but only state that "An operator shall not disturb surface acreage... prior to the <br />approval of the permit and receipt of approval from the Division of a performance bond <br />covering the surface acreage to be affected." (Rule 3.02.1(2)). Currently, the Colowyo <br />Mine is at its maximum permitted disturbance and its maximum reclamation liability. <br />This disturbance and liability will increase with the activities proposed in Technical <br />Revision 65 and the forthcoming PR-02 for the South Taylor mining expansion. <br />Currently, based on the reclamation liability calculated in TR-61, the Colowyo Mine is <br />operating in violation of the above stated Rules. Potential actions by the Division <br />include, but are not limited to, issuance of a notice of violation or issuance of a cessation <br />order. Currently, the amount of bond held by the Division has been deficient for more <br />than 30-days. It is imperative that the Division has a bond(s) covering the full <br />reclamation liability at the Colowyo Mine. The Division is requiring CCC to submit new <br />bond or bond rider in the amount of $14,682,353.00 prior to 2 June 2006 to avoid <br />enforcement related actions. <br />Please contact me at (303) 866-4929 if you have any questions or need any additional <br />information. <br />Sincerely, <br />James R. Stark <br />Environmental Protection Specialist <br />cc: Sandy Brown <br />Attachments <br />