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JURISDICTION <br />17. This Court has jurisdiction pursuant to C.R.S. § 34-33-128. <br />COUNT I (Mined Land Reclamation Board) <br />Issuance of the NOVs Is Bevond the Legal Authoritv of the Board and is not Supported by <br />Substantial Evidence on the Record as Powderhorn is Not in Violation of C.R.S. 34-33-113 <br />18. Powderhorn repeats and realleges each preceding paragraph as if specifically <br />stated herein. <br />19. The Board alleges that Powderhorn is in violation of C.R.S. 34-33-113, tivhich in <br />pertinent part, involves the posting of performance bonds prior to the commencement of coal <br />extraction operations and the subsequent modification of bond amounts. <br />20. This provision requires that the "bond shall be executed by the applicant and a <br />corporate surety licensed to do business in this state ..." C.R.S. 34-33-113(2); 2 C.C.R 407-2, <br />Rule 3.02.4(1)(a). <br />21. This provision contains no requirements with respect to the subsequent condition <br />of the surety, and in fact, states that "Liability for the bond shall be for the duration of the surface <br />coal mining and reclamation operations ..." C.R.S. 34-33-113(2). See also 2 C.C R. 407-2, Rule <br />3.02.4(2)(5)(i)(A). <br />22. At the time of issuance of the Frontier Bond, all the requirements for bond <br />approval were met by Powderhorn and Frontier; the bond was accepted by the State, and there is <br />no evidence in the administrative record to the contrary. <br />23. As a result of the foregoing, Powderhorn can not be determined to be in violation <br />of C.R.S. 34-33-] 13 of the law or 2 C.C.R. 407-2, Rule 3.02.4(1)(a) of the regulations. <br />COUNT II (Mined Land Reclamation Board) <br />Issuance of the NOVs Is Bevond the Legal Authoritv of the Board and is not Supported by <br />Substantial Evidence on the Record as Powderhorn is Not in Violation of the Coal Rules <br />24. Powderhorn repeats and realleges each preceding paragraph as if specifically <br />stated herein. <br />25. The Board concluded that Powderhorn is in violation of 2 C.C.R. 407-2, Rule <br />3.01, which contains general introductory statements and contains no compliance requirements. <br />26. There is no evidence in the administrative record to indicate that Powderhorn has <br />violated this provision. <br />3 <br />