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<br />iii iiiiiiiiiiiiiiii <br />999 <br />BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />Case No. Permit No. C-1981-041 <br />RESPONSE TO PETITION FOR FORMAL HEARING, EXTENSION OF TIME TO <br />ABATE AND RESPONSE TO NOV CV 2001-005 <br />Powderhom Coal Company <br />The Division of Minerals and Geology ("Division") responds to Powderhor Coal <br />Company's ("Powderhom") Petition for Hearing, Extension of Time to Abate and Response <br />to NOV (NOV CV 2001-005), as follows: <br />The Division has issued two notices of violation against Powderhom. Both notices <br />concern the bond Powderhom has submitted to ensure reclamation of its site. Specifically, <br />Frontier Insurance Company ("Frontier") issued a $2.6 million surety bond (the "Frontier- <br />Powderhor Bond"). The Division also has a $300,000. bond from Utica Insurance <br />Company. The first notice was issued on December 14, 2000, based on the Department of <br />Treasury's revocation of Frontier's Certificate of Authority which enabled Frontier to do <br />surety business with the federal government. The December NOV was also based on the fact <br />that the Frontier bond did not provide the financial assurance required by Colorado <br />regulations. The abatement period for this NOV was extended from January 16 to May 31, <br />2001. To date, Powderhom has not replaced the Frontier bond as requested in the NOV. <br />On April 13, 2001, the Division issued a second NOV, which is the subject of this <br />Response. The April NOV states that the Frontier bond does not meet regulatory <br />