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' l III IIIIII'll"IIIII \ <br />' ~ 999 <br />AGREEMENT <br />This Agreement is entered into this 22nd day of <br />August 1989, between the Mined Land Reclamation Divi- <br />sion, an agency within the Colorado Department of Natural <br />Resources (Division), and the American Shield Coal Company (Com- <br />pany). <br />WHEREAS, the Division is charged with the administration <br />and enforcement of the Colorado Mined Land Reclamation Act <br />(Reclamation Act), §§ 34-32-101 to 34-32-125, C.R.S (1984 & 1989 <br />Supp.), and the Colorado Surface Coal Mining Reclamation Act <br />(Coal Act), §§ 34-33-101 to 34-33-135, C.R.S. (1984 & 1989 <br />Supp.); <br />WHEREAS, on or about February 7, 1986, the Company became <br />the owner of a coal mine in Mesa County known as the Fruita Mine; <br />WHEREAS, the Fruita Mine had been previously permitted by <br />the Dorchester Coal Company under the Reclamation Act; <br />WHEREAS, on or about April 29, 1986, the permit for the <br />Fruita Mine was transferred to the Company; <br />WHEREAS, subsequent to the issuance of the permit under the <br />Reclamation Act, the Fruita Mine became subject to the terms of <br />the Coal Act; <br />WHEREAS, the Company has never obtained a permit under the <br />Coal Act as required by § 34-33-109, C.R.S. (1984); <br />WHEREAS, the Division currently holds a $141,000 recla- <br />mation bond on the Fruita Mine in the form o£ a letter of credit <br />drawn on the InterFirst Bank of Dallas; <br />WHEREAS, the Division proposed to appear before the Mined <br />Land Reclamation Hoard (Board) at the August 1989 meeting to seek <br />forfeiture of the reclamation bond and begin reclamation of the <br />site; <br />WHEREAS, the Division has foregone its intent to forfeit <br />the bond at the August Board meeting due to promises from the <br />Company that it would seek to permit the site pursuant to the <br />terms of the Coal Act; <br />WHEREAS, the current reclamation bond is insufficient to <br />reclaim the site in accordance with the Coal Act; <br />