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RE~EI'~E~ SEP 2 41985 State of Colorado Mined Land Declamation Board Department of Natural Resources In the Matter of: American Fuels, Inc. File No. C-031-81 MINED LAND RECLAMATION DIVISION Findings of Fact Conclusions of Law, and Order Findings of Fact 1. American Fuels, Inc. owns and operates a surface coal mine known as the New Pryor Strip Mine, which it is required to operate in accord with mined land permit No. C-031-81 ("the permit"). 2. Following a hearing held on July 25, 1985, the permit was suspended for a period of 30 days, and the issue of whether the permit should be further suspended or permanently revoked was continued to the next meeting of the Mined Land Reclamation Board. Paragraphs 1 through 18 of the board's findings of fact in this matter, issued on August 2, 1985, are incorporated herein by reference as if set forth in full. 3. On August 22, 1985, the board held the continued hearing on this matter. The board was informed that since the board's July meeting American Fuels had not performed any reclamation at the permitted site, had failed to submit any additional bond, and had not paid civil penalties assessed against it. The board was also informed that American Fuels had repre- sented to the Mined Land Reclamation Division that it was about to obtain new financing which would enable it to provide additional bond, pay the outstanding civil penalties, and commence reclamation of the permitted site. 4. American Fuels had previously submitted to the board a surety bond in the amount of $58,073.00, Bond No. 0097278 issued by Union Indemnity Insurance Company of Pdew York ("Union Indemnity"). That bond was itself insufficient to cover reclamation of the permitted sites, as indicated by notices of violation referred to in paragraph 9 of the board's findings of fact of August 2, 1985. In addition, the division was notified on or about August 15, 1985 that the State of New York had commenced proceedings to liquidate Union Indemnity, and that any claims on bonds furnished by Union Indemnity would not be honored unless they were promptly submitted.