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III IIIIIIIIIIIII III <br />m <br />r <br />DIVISION OF MINERALS AND GEOLOC1Y <br />Department of Natural Resources <br />131 J Sherman St., Room ? 15 <br />Denver, Colorado 80203 <br />Phone (3031 866-3567 <br />FAX: 13031 8328106 <br />February 23, 1999 <br />Mr. Rick Mills <br />Twentymile Coal Company <br />29~ 15 Routt Counrv Road No. 27 <br />Oak Creek, CO 80467 <br />Re: Energy Mine No. 3, C-84-062, Phase II and 1[I Bond Release <br />Deaz Mr. Mills: <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MIN ING•SAFETY <br />Rill Owrns <br />Governor <br />Greg E. Wal~her <br />Eaecuuve Director <br />rnlchael B. LOng <br />D~v~s~on Director <br />The Division and Colorado Yampa Coal Company are gradually resolving all outstanding <br />concerns regarding the Energy Mine No. 3 application for Phase II and III bond release. In <br />this letter the Division has summarized those items remaining that need to be resolved before <br />the Division can make a proposed decision regarding Phase II and III bond release for Energy <br />Mine No. 3. <br />In a letter dated August 7, 1998, the Division requested that Colorado Yampa Coal Company <br />provide a demonstration that Colorado Yampa Coal Company had successtully fulfilled the <br />diversity standard. Colorado Yampa Coal Company responded on November 6, 1998 with <br />information to indicate that the previously approved diversity standazd using the Shannon- <br />Weiner diversity index was not appropriate to apply to a reclaimed mine site. Colorado <br />Yantpa Coal Company submitted Technical Revision No. 9, which requested revision of the <br />diversity standard to a standard applicable to the post-mining land-use and to the post-mining <br />topography. The Division approved the revision on December 28, 1998. No comment from <br />other agencies or affected persons was received. The decision became foal on January 16, <br />1999. No further response regarding the diversity standard is required. <br />Other items that prevent the Division from finalizing our decision on the phase II and III bond <br />release aze: <br />A. Colorado Yampa Coal Company stated in a telephone conversation in February 1999 that <br />Colorado Yampa Coal Company would submit data from 1993 for Well 008-77-58. Data <br />collected in water year 1993 would represent existing ambient quality as of January 31, <br />1994 as indicated in Colorado Department of Public Health and Environment Basic <br />Standards for Ground Water ~ CCR 1002-41, page 13. This information was not <br />submitted with the Energy Mine No. 3 1998 Annual Hydrology Report that the Division <br />received February 23, 1999. The Division located this information from Colorado Yampa <br />Coal Company's 1993 AHR. The Division will review the data as presented in the 1993 <br />TE OF COLORADO <br />