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The Division is also proposing to return excess bond based on the bond reduction <br />approved in Petmit Renewa102/Permit Revision 02. This Bond Reduction was based on <br />an excess amount of bond held pursuant to Rule 3.02.2(5). <br />PARTIAL PHASE I BOND RELEASE <br />The Division currently holds a corporate surety in the amount of $5,200,000.00 from the <br />Seaboard Surety Company (CS329873) for the Yoast Mine. The required surety for the <br />Yoast Mine, prior to the Partial Phase I Bond Release, is $5,046,639.00. SCC requested <br />a release of $6] 1,023.00 in the Phase I bond release application. The Division is <br />proposing to release $11,862.00. Pursuant to Rule 3.03.1(2)(a), "Up to sixty percent of <br />the applicable bond shall be released when the pennittee successfully completes <br />backfilling, regrading and drainage control in accordance with the approved reclamation <br />plan." The $11,862.00 the Division is proposing to release with SL-O1 is 0.24% of the <br />applicable amount, which is less than the sixty percent allowed for release pursuant to <br />Rule 3.03.1(2)(a). The required bond liability for the Yoast Mine will be $5,034,777.00. <br />The Division finds that this amount is sufficient to complete the approved reclamation <br />plan at the Yoast Mine. The reason there is such a lazge difference in the amount SCC <br />has requested for release and the amount the Division is proposing for release is detailed <br />below. <br />The Division uses a floating bond concept for backfilling and grading to calculate the <br />reclamation cost estimate and, consequently, the required bond amount. During the <br />initial five-year permit teen of a surface mine Lhe Division determines aworst-case <br />disturbance for the mine and sets a liability amount for the mine's reclamation. This <br />worst-case disturbance is based on a single year during the five-year permit term in which <br />the greatest disturbance will occur. As the operator continues to mine during that permit <br />term, the dollazs associated with the backfilling and regrading of a specific pit are <br />"floated" to the next pit in the sequence. During successive five-yeaz permit terms, the <br />Division performs aworst-case disturbance analysis for that permit term. If the worst- <br />case disturbance is greater than it was in previous permit terms, the amount of bond <br />required for backfilling and regrading is increased. If the worst-case disturbance is less <br />than it was in the previous permit terms, the amount of bond required for backfilling and <br />regrading remains constant (it is only adjusted for changes in equipment costs). In this <br />way the monetary liability is "floated" from one pit to the next so that the only pit that <br />has actual dollars associated with it is the pit that is cunrently open (or the final open <br />pit(s) when a mine ceases its operations). It is important to note that while backfilling <br />and regrading dollars "float" at a surface mine, costs for replacing topsoil and <br />revegetation are cumulative. <br />SCC requested that the Division release dollars associated with the backfilling and <br />regrading of the pits within the bond release azea. These pits were mined in previous <br />permit terms and the dollars associated with their backfilling and regrading have been <br />"floated" to successive pits. The costs calculated for the worst case disturbance at the <br />Yoast Mine aze shown on the figure "Yoast Mine -Final Active Pits as of 24 August <br />2004". These pits are the Neck Pit, the Valora Pit, the South Valora Pit, the Scraper Pit <br />