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For the Bacon Mine, the four concerns mentioned in AFO's Bond Release Inspection Report (inspection date May 18, 1990) are being resolved. In addition, AFO mentioned that the proposed release acreage of 40 acres should be adjusted downward to properly reflect that only the acreage at the pit area reflects actual backfilling and grading. The portion of the 40 acre figure which reflects road disturbances and other areas not subject to backfilling should not normally be included in a Phase I release. This would not decrease the 60 percent of bond monies sought for release. o Vacations of State NOV No. 89-029 (Chimney Rock) - The operator submitted additional information to MLRD after issuance of the NOV. From this information, the Division determined that the operator had been performing rill and gully inventories and repair according to the approved plan. After repair of existing erosion (as shown by work documents prepared at the time by the repair contractor), heavy summer rains produced rill and gully erosion in new areas. These were the gullies cited in the State NOV issued during an inspection immediately following the rains. MIRD, therefore, determined that the operator had been performing according to the approved Rill and Gully Plan which requires inventory in spring and summer, with gully repairs to be completed by the end of October. AFO agreed with this reasoning and the vacation of the NOV. The gullies have been repaired. Vacation of State NOV No. 89-037 (Colowyo) - AFO still believes that the Streeter Fill diversion downdrain cited in the NOV (issued during a joint TDN follow-up inspection) for failure to maintain was not in compliance with design standards at the time of vacation. ML.RD still maintains that the operator's submission of additional information proved that the diversion, even while being reconstructed, was in compliance for the design event; and that reconstruction was proceeding according to a recently approved revision submitted in response to the TDN. AFO believes that the NOV was vacated while a violation still existed; that is, that reconstruction at the time of vacation was not in compliance with the approved design. AFO indicated that NOV abatement could have been extended to accommodate weather and soil conditions and equipment/operational requirements. In regard to the vacation of this particular NOV at Colowyo, AFO indicated that no Federal citation would result, buC that the matter would be discussed in the EY 1990 Evaluation Report. Vacation of State NOV No. 89-039 (Twin Pines) - AFO believes that this NOV was improperly vacated. During the joint inspection, the NOV was issued for failure to obtain approval for the disposal of coal processing waste. The operator told the OSM inspector during the inspection that the material in the pile consisted of breaker rock waste. MLRD's position was that the operator later supplied information indicating that the material was low-grade coal stockpiled for later blending with a better grade of coal. The NOV was vacated on this basis. AFO indicated that this vacation would be discussed in the evaluation report. 2