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In addition, as to the second ground stated in the Division's NOV, Colorado <br />regulations require that an operator give a financial assurance that reclamation will be <br />performed in the form of a performance bond. § 34-33-113, C.R.S. The performance bond <br />is conditioned on the faithful performance of all the requirements of the Act, the regulations, <br />the permit and the reclamation plan. 2 C.C.R. 407-2, Rule 3.02(1). Liability under the bond <br />continues until reclamation is completed and the petmittee has been released from liability. <br />2 C.C.R. 407-2, Rule 3.02(4). If the corporate surety is not financially sound, then the bond <br />from that surety does not provide the financial assurance required by Colorado regulations. <br />Frontier's financial condition has been steadily deteriorating throughout last year and <br />this year, as confirmed by the Mazch 14, 2001, Order of Suspension by the Colorado <br />Commissioner of Insurance. As a consequence, the bond Powderhom has posted to ensure <br />performance of its reclamation obligation does not provide the financial assurance required <br />by the Coal regulations. See § 34-33-113, C.R.S.; 2 C.C.R. 407-2, Rule 3.02.1. Powderhom <br />is therefore required to replace the bond with one that fully complies with all regulatory <br />regulations, Powderhom and Powderhor Properties Company aze liable for surface and <br />subsurface disturbance which either of them caused prior to rejection of the leases. See 30 <br />U.S.C. § § 1258(a), 1265(6). See also 30 U.S.C. § 1259. (This is consistent with <br />Colorado's laws which provide that bond liability does not end until reclamation has <br />occurred and bond released has been granted. See 34-33-113, C.R.S; 2 c.C.R. 407-2, Rule <br />3.02.) If an operator remains liable for reclamation work on federal land after it has rejected <br />a federal coal lease, the operator remains bound by federal law concerning the sufficiency of <br />its reclamation bond until the reclamation work has been completed and released from <br />liability. Accordingly, Powderhom remains bound to comply with federal law concerning <br />13 <br />