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-, <br />STATE OF COLORADO <br />MINED LAND RECLAMATION BOARD <br />DEPARTMENT OF NATURAL RESOURCES <br />IN THE MATTER OF: Suspension of Bond ) FINDINGS OF FACT <br />Forfeiture for the La Plata No. 1 Mine, ) CONCLUSIONS OF LAW <br />Permit C-87-072 (Revoked), and Assumption ) AND BOARD ORDER <br />of Reclamation Liability by the ) <br />first National Bank of Florence, Colorado ) <br />This matter was presented in a formal public hearing, after proper notice <br />before the Colorado Mined Land Reclamation Board ("Board") on <br />February 22, 1990 in Room 220 of the Centennial Building, 1313 Sherman Street, <br />Denver, Colorado. The Board conducted the hearing to consider whether to <br />allow the First National Bank of Florence (the Bank) as the surety to conduct <br />the reclamation of the La Plata No. 1 Mine in compliance with a letter of <br />agreement entered into by the Bank and the Mined Land Reclamation Division <br />(Division). <br />The hearing was held in accordance with C.R.S. 34-33-124(4) and 2 CCR 407-2, <br />Rule 3.04.2(5). A taped transcript was made of the hearing. Pursuant to the <br />authority vested in the Board by C.R.S. 34-33-124(4) and 2 CCR 407-2, Rule <br />5.03.5, the Board hereby makes the following Findings of Fact, Conclusions of <br />Law and Board Order. <br />FINDINGS OF FACT <br />At a formal public hearing held April 26, 1989, the Board found a pattern <br />of violations to exist at the La Plata No. 1 Mine, revoked Permit <br />C-087-072 held by La Plata Coal Corporation and ordered the Reclamation <br />Bond to be forfeited on July 1, 1989 unless a complete coal permit <br />application were to be submitted prior to that date. <br />A permit application was not received by the Division by July 1, 1989, and <br />the Division initiated bond forfeiture proceedings. By letter dated <br />July 7, 1989, the Division requested the First National Bank of Florence <br />to pay the total bond amount of $58,200.00 warranted under Irrevocable <br />Letter of Credit No. 1569. <br />On July 26, 1989, the Bank expressed their interest by phone in assuming <br />the reclamation liability and performing the reclamation at the La Plata <br />No. 1 Mine in lieu of forfeiting the reclamation bond to the Division. <br />Based on an opinion by the Assistant Attorney General, the Division <br />determined that the Bank, as the surety, did have a right under the Rules <br />and Regulations to demonstrate an ability to complete the reclamation plan <br />in lieu of paying the forfeited bond amount. <br />