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Mr. Steve Renner May 6, 1991 Page 5 Phase I and Phase II bond release for the entire site, except for Phase II bond release on those portions of Pit 4 revegetated in 1990. Rockcastle has submitted extensive information supporting both Phase I and II bond release for the site. Thus, Rockcastle is entitled to a return of 85 percent of its $446,680 bond ($379,678). This amount substantially exceeds the amount which has been released to date by CMLRD ($312,376). I Similarly, issues regarding hydrologic monitoring and sediment pond inspections are also substantively moot. Rockcastle continues to monitor surface water discharges at the site. Further, Rockcastle has prepared and submitted extensive information regarding the condition and stability of the sediment ponds in preparation for removing these ponds. OSM raises several issues regarding backfilling Pit 5/6. OSM misinterprets the Agreement to require additional backfilling and grading at Pits 5/6. Pursuant to the Agreement, Rockcastle could demonstrate that these Pits are geotechnically and geomorphically stable. Agreement $ IV.1. Rockcastle has demonstrated to CMLRD's satisfaction that the pits are geotechnically stable, and has proposed measures, after consultation with CMLRD, to enhance the geomorphic stability of the pits. Moreover, the Agreement recognizes that these pits were reclaimed many years ago, that substantial revegetation is present at the site, and that redisturbance of the pits would result in undesirable, unnecessary and unreasonable environmental harm. Moreover, all required backfilling and grading at the Grassy Gap mine has been completed, and therefore Phase I bond release is appropriate. We hope the foregoing comments are helpful in responding to OSM. Please do not hesitate to contact me or Brent Anderson if you have any questions regarding the content of this letter or if we can be of further assistance in this matter. Thank you. Sincerely, L, MAURO, ~iLTL2'IN AND SPAANSTRA, P. C. II ~ ~/ ~I R. assev~~~'~-- B'rent'C. Anderson . ATTORNEYS FOR THE ROCXCASTLE COMPANY BCA:pjh Enclosure cc: David J. MacDougall, Esq. Mark Rorb, Esq.