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II. STATEMENT OF THE FACTS <br />In 1980, OSM and the DMG entered a cooperative agreement <br />whereby the DMG became the primary authority to regulate mining <br />on state lands and on federal lands located within 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 1981, the DMG issued a permit to Kerr Coal Company <br />(Tr.-Z, 50). The permit provided that the pre-mining land con- <br />figuration at issue here was generally a solid north-south run- <br />Wing ridge (Tr.-I, 51). In 1990 and 1993, the Division approved <br />revisions to Kerr's original permit, specifically concerning <br />backfilling and grading requirements to comply with approximate <br />original contour (AOC) standards (Tr.-II, 245-47). These revi- <br />sions allowed an east-west notch or depression to remain in the <br />ridge (Tr.-I, 73). <br />After terminating mining operations, Kerr began reclamation <br />according to its amended state permit, and finished the work in <br />early 1994 (Tr.-III, 475). In April of 1994, Kerr applied for a <br />Phase I bond release, which covers backfilling and grading re- <br />quirements (Tr.-I, 36-37, 214). <br />On May 12, 1994, OSM and DMG conducted a bond release <br />-3- <br />