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his stipulation has been complied with by marking these wells and <br />boreholes in the field with rock bolts and brass tags. This is <br />explained in a letter dated x/x/x from Tom Anderson to the <br />Division and is contained in the TR-17 File. The stipulation is <br />therefore terminated. <br />Stipulation No. 19 <br />SAC must obtain Division approval of a new bond to cover the bond <br />increase associated with the construction of substation No. 3 <br />before said construction begins. <br />This stipulation has been complied with through the submittal of <br />U.S. Treasury Note No. 833628 and CUSIP #912827L42 and is therefore <br />terminated. <br />ZV. Bonding <br />The current reclamation bond for the Sanborn Creek Mine is <br />$1,089,743.75 and is secured with the following bond instruments. <br />Instrument Amount <br />Letter of Credit No. 13424 <br />CD No. 000597002 <br />Letter of Credit No. AO279 <br />CD No.601629001 <br />TN-CUSIP No. 912827L42; Receipt <br />TN-CUSIP No. 912827L42; Receipt <br />TN-CUSIP No. 912827L42; Receipt <br />$575,000.00 <br />$96,000.00 <br />$37,000.00 <br />$6,000 <br />822384 $351,962.50 <br />833628 $10,463.75 <br />891656 $13,317.50 <br />Total $1,089,743.75 <br />During the course of this review the reclamation cost estimate was <br />recalculated using 1995 costs for structural demolition and <br />equipment operation. The results of this review indicate that <br />most costs associated with the various reclamation tasks have <br />increased. In addition, salvage value on structural demolition is <br />no longer accepted by the Division as credit on reclamation <br />bonds. Therefore, the reclamation liability for the Sanborn Creek <br />Mine has increased by $1,089,743.75 to $1,232.257.00. A copy of <br />the revised bond calculation is attached to this document for your <br />review. <br />Please review the completed bond estimate and forward any concerns <br />about the new cost estimate to the Division. If no additional <br />concerns are received, the Division will finalize the increase that <br />is required and request that Oxbow Carbon and Minerals, Inc. amend <br />their existing bond to cover the increase in the reclamation <br />liability. This can be accomplished through the bond instrument of <br />your choice that is acceptable per rule 3.02.4 of the Regulations <br />of the Colorado Mined Land Reclamation Board for Coal Mining. If <br />no additional changes occur, the reclamation bond will need to be <br />-6- <br />