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Since the coal statute's overall purpose is to allow mining but to also return the land <br />to a beneficial use, the financial warranty is an essential part of compliance with regulatory <br />requirements. Accordingly, a financial assurance must strictly meet all regulatory <br />requirements and be from a sound financial warrantor. Otherwise, the legislative purposes of <br />the act and the regulatory requirements are undermined and rendered meaningless. <br />When an operator fails to perform its reclamation obligations, and/or fails to provide a <br />bond that meets regulatory requirements, the operator has in effect shifted the risk of the cost <br />of reclamation to the citizens of Colorado. This is especially so in the present matter in view <br />of the fact that Powderhor is in bankruptcy. This Board should not allow an operator such <br />as Powderhom to avoid its obligations and shift the risk that reclamation will not be <br />completed to the taxpayers by allowing Powderhom to avoid replacement and/or forfeiture of <br />its bond. These burdens and risks are properly borne by the operator. It is within this <br />framework that the Division requests the Board to review and enter the NOVs pending <br />against Powderhor. <br />Factual Background <br />Powderhor filed a petition in bankruptcy on June 16, 2000. Nineteen related <br />corporations also filed petitions in bankruptcy. A1120 bankruptcy proceedings have been <br />administratively consolidated but have not been consolidated substantively, i.e., each <br />