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STATE OF COLORADO ? 'bNISIOtd OF RECtAMAl70N, MINING AND SAFETY p~,en[ of Natural Resoluces 1313 Shen*san 5<.. Room 215 Denver, Colorado 80203 PIIaN: (303) 866.3567 FA%: t303) 832-8106 February 15, 2007 Mr. Jim Fulton Denver Field Office Chief Office of Surface Mining P.O. BOX 46667 Denver, CO 80201-6667 ~;'~ i ,,f : ~ COLORADO DIVISION O f RECLAMATION MINING -~ &.~ SAFETY ern o»em Coremar Russell Gtorye ExenN,e DireUar Rauh w. caltany DNfsian Disecror Natural Resaoos Tnuti Re: 732 Letter related to 30 CFR 817.121 (c) (5) Mr. Fulton: On February 13, 2007, the Division of Reclamation, Mining and Safety (DRMSl teceiYed......-,..._...._ the Office of Surface Mining 732 letter dated Febnrary 12, 2007, regarding the federal regulation 30 CFR 817.121 (c) (5). This regulation pertains to the requirement to post bond for subsidence-related material damage. Whereas the DRMS has not previously interpreted our regulations to require such bonding, we acknowledge that this federal requirement has been in existence for many years. We also understand that the Colorado Coal Program must be as effective as the federal requirements, and that federal intervention is a possibility if the Colorado Coal Program does not perform to this standard. Upon further review and consideration of the existing language in both the Colorado Surface Coal Mining Reclamation Act (Act), and the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining (Regulations), we believe that the federal requirement to bond for subsidence-related material damage can be implemented though the existing Colorado Act and Regulations. This conclusion is based on our understanding that for such a bonding requirement to be triggered, there must first be a finding that subsidence-related material damage has occurred. We also base this conclusion upon the broad provisions of C.R.S. 34-33-113 that require a bond that is conditioned upon performance of the requirements of the "article and the permit". The issues of subsidence damage mitigation and compensation are provisions already contained in the Act and permitting process. This concept is also supported by the Colorado Rule 3.02.1 (1). We believe that the provisions regazding bonding and subsidence damage protection contained in the existing Colorado Act and Regulations are sufficiently broad as to allow us to proceed with this interpretation. We believe that this interpretation is appropriate and that additional legislation or rulemaking is not needed at this time. If in the future, we determine that other unrelated Office of Olflce of Mined Land Reclamation Active and Inactive Mines