1992-04-07_REVISION - C1982056

• Permit No: C1982056
• IBM Index Class Name: Revision
• Doc Date: 4/7/1992
• Doc Name: Midterm Review Findings Document
• From: MLRD
• To: CYPRUS YAMPA VALLEY COAL CORP
• Type & Sequence: MT2
• Media Type: D
• Archive: No

Section V
Bonding
In February of 1991 , Twentymile Coal Company (TCC) received (via TR-12) , a
variety of surface facilities that previously were under the jurisdiction of
Permit No. C-81-071 . At that time, it was decided that the transfer would
occur and the actual bond liability would remain the same until midterm
review, when bond could be recalculated and properly assigned to the
appropriate mine. The estimated bond amount for the transfer was
approximately $354,000 and this amount appears to be transferred right out of
the C-81-071 permit document. For the purposes of the revision and to
expedite approval , this was adequate . However, upon closer examination, it
appears that this amount is probably inaccurate, since it was calculated using
older methods and without any administrative fees etc . There have also been
several minor revisions ( including MR Nos . 68, 69, 70, 71 , 72) which have
increased the liability, but which hard calculation was deferred until
midterm. This is a priority issue and needs to be addressed immediately.
This should be accomplished in the following manner.
1 . Submit a bond adjustment application which includes an up-to-date list of
facilities and structures associated with the Foidel Creek Mine plus a
comprehensive reclamation cost breakdown . Ultimately a revised bond
summary will be incorporated into the permit.
This process will result in an up dated current bond and will be a fresh
starting point for any additional bond amendments required from revisions or
otherwise. Future revisions should always

The Division currently has three separate bonds for the TCC on file. One of
these was associated with the former Fish Creek Tipple which has now been
incorporated into the Foidel Creek permit. The bonds are:
No. 64S100208574BCA for $ 113,700 - Permit No. C-81-036
No. 64S100208575BCA for $ 2,670 - Permit No. C-82-056
No. 64S100203392BCA for $1 ,673,870 - Permit No. C-82-056
The current liability assigned to TCC is $1 ,673,000.00. This leaves a
contingency of $115,670.00. Since Permit No. C-81-036 for the Fish Creek
Tipple is no longer active and has been incorporated into the Foidel Creek
Mine permit, the bond should be changed to reflect this . This can be done
within the context of the above mentioned revision.
This concludes the review process . Attention should be given to any deadlines
for submitting responses or revisions .
AJW/yjb/ern
1356F (3/92)
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