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November 2005 Hayden Gulch Mine * Final Bond Release Application 1Page 1 <br />1.0 INTRODUCTION <br />In accordance with Rule 3.03, Hayden Gulch Terminal, Ina (HGTI) herein is submitting a Final <br />Bond Release Application for the Hayden Gulch Mine, Permit C-80-003. The Hayden Gulch <br />Mine is an inactive surface coal mine that has undergone reclamation and closure. The mine is <br />located in Routt County, Colorado, approximately 11 miles southwest of Hayden, Colorado. <br />This Final Bond Release Application demonstrates that the reclamation activities conducted at the <br />Hayden Gulch Mine have resulted in the fulfillment of all revegetation success criteria and the <br />establishment of vegetation that supports the approved postmining land use of wildlife habitat and <br />livestock grazing. The Final Bond Release Application follows the general procedural and format <br />requirements of Section 34-33-125 of the Colorado Surface Coal Mining_Reclamation Act (Act) <br />and Rule 3.03, Release of Performance Bonds, of the R_~ulations of the Colorado Mined Land <br />Reclamation Board for Coa] Minine (Regulations), as outlined in the Colorado Division of <br />Minerals and Geology's (CDMG) Guideline Reeardins Selected Coal Mine Bond Release Issues, <br />Anril 18, 1995 (Bond Release Guideline). <br />1.1 History of Reclamation Bond Liability Release at the Hayden Gulch Mine <br />Surface coal mining activities at the Hayden Gulch Mine ceased in 1986. All reclamation and <br />revegetation activities, as well as previous bond release applications, were completed by the <br />mine's previous owner/operator, H-G Coal Company (HGCC). HGCC transferred the coal mine <br />operating permit and surface property ownership for the Hayden Gulch Mine to HGTI in a <br />Transfer of PermitJSuccession of Operator agreement executed by CDMG on January 17, 2003. <br />The CDMG approved a partial Phase I bond release (SL-Ol, Mined Land Reclamation Division, <br />1998) for the former mining azea, with a corresponding reduction in reclamation liability, in <br />March 1988. In June 1993, the CDMG recognized the transfer of ownership and operating permit <br />of the railroad loadout facility which had been part of the original permit for the Hayden Gulch <br />Mine (CDMG, 1996). This transfer resulted in a release of reclamation requirements for this <br />faciliTy and a corresponding reduction in the bond liabiliTy. In June 1997, CDMG approved a <br />second partial Phase I bond release (SL-02, CDMG, 1997) for the former mine facilities support <br />area, with a corresponding reduction in reclamation liability. In July 1999, the CDMG approved <br />a partial Phase IUPhase IR bond release (SL-03, CDMG, 1999) for most of the former mining and <br />facilities support area. SL-03 reduced the permitted area from 1,269 acres to 8.9 acres. <br />1.2 Permit Area with Reclamation Bond Liability <br />Following approval of SL-03, and as discussed in Technical Revision No. 68 (TR-68}, the <br />Hayden Gulch Mine permit area consisted of four small pazcels (totaling approximately 8.9 acres) <br />within the reclaimed and revegetated former mine disturbance area. The CDMG retained a <br />reclamation liability bond in the amount of $27, 437.27. The locations of the four parcels are <br />shown on Map 1, Hayden Gulch Mine Permit Boundary and Revegetation Sequence, <br />Three of the parcels -Parcel 003, Parcel HG-8 and Parcel E -are associated with the shrub <br />augmentation program as outlined in TR-62, which was initiated in 1996. The fourth parcel <br />