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on state lands and on federal lands located in the state. 30 <br />C.F.R. §§ 906.10 and 906.30.(5)(A), (8), and (17). One <br />of the purposes of the. agreement is to eliminate intergovern- <br />mental overlap and duplication. 30 C.F.R. 906.30(2). <br />In 1980, the DMG issued a permit to Kerr Coal Company. <br />Transcript of hearing on July 20-22, 1994, before ALJ Child in <br />Denver, Colorado (Tr., 50). In 1990 and 1993, the Division ap- <br />proved revisions to Kerr's original permit, specifically concern- <br />ing backfilling and grading requirements to comply with approxi- <br />mate original contour (AOC) standards (Tr., 245-47). <br />After terminating mining operations, Kerr began reclamation <br />accordin.q to its state permit as amended, and finished the work <br />in early 1994 (Tr., 475). In April of 1994, Kerr applied for a <br />Phase I bond release, which covers backfilling and grading re- <br />quirements (Tr. 36-37, 214). <br />On May 12, 1994, OSM and DMG conducted a bond release <br />inspection of the site (Tr., 36, 68-69, 100, 347). During the <br />inspection, OSM representative Stephen Rathbun orally stated to <br />the DMG representatives that the configuration of Pit 1 did not <br />meet the AOC requirements of Rule 4.14.1(2)(a) of the Colorado <br />State Program (Tr., 100-01). When the DMG representatives disa- <br />greed, Rathbun stated that he would issue a federal notice of <br />-2- <br />