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E~ Seneca Coal Com an •~ co„r ccmps~r p Y . June 2, 2006 Hayden Public Library P.O. Box 1813 Hayden, CO 81639 To Whom It May Concern: Seneca Coal Company, 36600 Routt County Road 27, P.O. Box 670, Hayden, Colorado 81639, is requesting release of Phase I bond liability on 761.2 reclaimed acres. of its total 4,093.0 acres currently within the permit boundary at the Seneca II-W Mine (CDMG Permit No. G82-057, approved Decembcr3l, 1985). A surety bond in the amount of $9,707,373 is currently in place of which $2,329,115 are being requested for release. Pursuant to Rule 3.03.1, a permittee may request Phase I Bond release upon successful completion of backfilling, regrading and drainage control in accordance with the approved reclamation plan. Those portions of the mine for which Phase I bond release is requested were backfilled and goaded from the beginning of mining, in 1990, through 2005 in accordance with the Colorado Division of Minerals and Geology {CDMG) rules and regulations. The approved reclamation plan can be xeviewed in its entirety in the Seneca II-W Mine Pemut Application Package located in the Hayden Public Library, Hayden, Colorado. All affected lands within Seneca II-W Mine fall within the pemtanent program category. For dte purposes of this Phase I Bond Release request, the term "reclaimed" means those disturbed/mined areas where successful completion of backfilling, regrading and drainage control, in accordance wit}r the approved reclamation plan, has been completed. The Phase I reclamation activities have produced a stable landfotm in compliance with the approved conditions in the CDMG Pemit No. C-82-057 The following is a brief summary of the Phase I reclamation that has been completed. Backfilling and grading was conducted from 1990 through 2005 and was generally completed within 180 days following coal removal and was generally within two (2) spoil ridges behind the active pit. The majority of the grading work was perforrned with dozers and scrapers. In some cases the major backfilling was done with scrapers and draglines. All areas affected by the surface mining operations, except as specifically exempted by the CDMG, were regraded on a timely basis ro a stable configuration that conforms with the approved postmining land use (livestock grazing and wildlife habitat). For the most part, grading was done along contour to also m;n;m;>e erosion. Any time operations were conducted on sreep slopes that could present safety concerns to the operators, grading was done in a direction other than parallel to contour. Exhibit C in the Phase I Bond Release application provides representative cross-sections showing final topography configuration. Amore detailed discussion of the overall mining and reclamation can be found in the Seneca II-W Mine Pemtit Application, specifically Tab 12, Operation Plan and Tab 20, Backfilling and Grading. Included in the postmine regrading operation was the construction of small swales and hummocks to minimize erosion and to conserve soil moisture and to promote revegetation. Small stock tanks are also utilized in the postrnine grading operations to minimize erosion and to provide water for livestock and wildlife. The locations of these stock ponds are shown on Exhibit B in the Phase I Bond Release application. The designs and certified as-bunts for the permanent stock ponds can be reviewed in the Seneca II-W Mine Permit Application Tab 13, Facilities. Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81639 Telephone (870) 276-3707 • FAX (970) 276-3014