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COLORADO YAMPA COAL COMPANY • PERMIT NO. C-81-071 RECLAMATION LIABILITY & BOND RELEASE REQUEST PHASE III: ECKMAN PARK & MINE 1 INTRODUCTION The Colorado Yampa Coal Company ("CYCC") hereby requests final reclamation liability release for Eckman Park and Mine 1 areas within the boundaries of Permit No. C-81-071. The bond release application requests a Phase III reclamation bond and liability release for 2,388.5 acres within the Eckman Park and Mine 1 areas. Permit No. C-8]-071, renewed on April 1 I, 1997 consists of 2,733.9 acres of which 2,388.5 acres are currently under reclamation liability and bonded for $5,844,070. The application requests Phase 111 release of $1,561,099 of Corporate Surety Bond No. KA2990-091. The Phase ]il release areas are located in portions of: Sections 23, 24, 25 and 26 of Range 87 West, Township 4 North; Sections 7, 8, 9, i 7, 18, 19, 30 of Range 86 West, Township 4 North; and Sections 29, 30, 31, 32, 33 and 34 of Range 86 West, Township 5 North, Routt County, Colorado. The following sections describe reclamation and revegetation work that CYCC has accomplished on the Eckman Park and Mine I disturbed areas to achieve and support the approved postmining land uses, and meet or exceed minimum regulatory standards for bond release. This discussion addresses the requirements of the Colorado Mined Land Reclamation Board ("CMLRB") rules and bond release guideline. PUBLICATION OF THE BOND RELEASE APPLICATION NOTICE • Publication of the public notice (Exhibit I) by the Steamboat Pilot for the bond release application was published from September 16, 2001 through October 7, 2001. The public notice publication affidavit is attached to the application. NOTIFICATION OF AFFECTED LANDOWNERS The affected landowners and other parties listed in Exhibit 2 have been notified of the submittal of the bond release application. Photocopies of correspondence sent to notify them of submittal of the bond release application are contained in Exhibit 3. Photocopies of Certified Mail Domestic Return Receipts will be forwarded to the CMLRB after they are returned to CYCC. RECLAMATION ACTIVITIES CYCC has regraded all disturbances associated with mining to the approved approximate original contours. Topsoil has been redistributed to the required thickness on all graded areas as specified in the permit for the approved postmining land uses. The entire bond release area has an approved postmining land use of pastureland. Revegetation efforts completed for all mining associated disturbances consist of a sequential application of agricultural methods as described in the mining and reclamation permit. PASTURELAND Disturbed pastureland areas were reclaimed between 1976 and 1991, and were seeded with the approved revegetation seed mix listed in the Annual Reclamation Reports (Table I). Revegetation monitoring was conducted on the reclaimed pastureland and pastureland reference area in 2000 and 2001. Results of this monitoring demonstrate that all reclaimed pastureland meets or exceeds regulatory and permit requirements. •