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Seneca Coal Company <br />Seneca II Mine <br />Pre-Law Area Bond Release Request June 2007 <br />• <br />As stated previously, "The reclamation rtandardr udder previour Colorado /amr men not ar rtringent ar SMCRA and <br />therefore the bond releare aiteria mart coincide with the lam and pernTit in effect at the time reclamation mar conducted " <br />Seneca Coal Company applied for Phase I Bond Release on 2,247.7 acres of reclaimed lands at the Seneca II <br />Mine in May 2006. This total acreage included 326.5 acres of Pre-Law area. In the resulting Proposed <br />Decision and Findings of Compliance for the Seneca TI Mine Phase I Bond Release (December 27, 2006), the <br />Division withheld $1,355,000 for 67.4 acres at the Old Wolf Creek Pit Eor grading work to establish positive <br />drainage from the Wolf Creek Pond and stabilize erosion in the former pit. <br />Review of the "old" regulations (pre-SMCRA) and the explanation provided in the 1986 Pemut Renewal <br />Decision indicates nothing about three-phase bond release or floating bond concept, therefore the $1,491,736 <br />designated for the Pre-Law disturbance should have been proportioned over the entire 326.5 acres of Pre- <br />Law disturbance (i.e., $4,568.87/acre). This cost/acre then results in $307,942 that can be withheld for the <br />67.4 aces of Old Wolf Creek Pit grading work to establish positive drainage from the Wolf Creek Pond, <br />stabilize erosion in the former pit, and reestablish vegetation rather than $1,355,000. Therefore, SCC is <br />requesting release of $1,183,794 of the bond monies held for the remaining 259.1 reclaimed acres in the Pre- <br />Law azea. <br />The following list describes the accompanying maps and documents provided in this package to further <br />document the Pre-Law Area bond release request. <br />Exhibit A, Pre-Law Bond Request Atea, shows the location of the 259.1 acres included in this request. <br />• Exhibit B, Chronology of Mining, shows the extent of coal removal according to the regulated <br />categories /timeframes. <br />• Coal Removal Limits Prior to August 3, 1977 - 296.0 acres <br />Exhibit C, Chronology of Bacldlling and Grading, presents the limits of backfilling and grading <br />according to the regulated categories/timeframes. The extents were determined based on interpretation of <br />pit maps. <br />• Limits of Backfilling and Grading Prior to August 3, 1977 - 326.5 acres <br />Exhibit D, Chronology of Bonding, shows the areas bonded during the pre-law, interim program and <br />permanent program timeframes. <br />Exhibit E, Post Mining Topography, provides final post-mining topography for all Seneca II Mine lands <br />regraded through 2005 including the Pre-Law Bond Release area. <br />Exhibit F, Cross-Section of Backfilled and Graded Area, provides a representative cross-section showing <br />the final topography configuration. <br />Exhibit G, 2005 Vegetation Sample Sites, shows the location of the random sample sites selected to <br />demonstrate revegetation success. <br />Attachment A contains a Notarized Statement that all reclamation work has been completed in compliance <br />with approved permit and Rule 3.03.2(1)(e). <br />. Attachment B contains copies of the "Notification" letters sent to the entities listed in Section III. <br />