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1,- Z <br />~_M`OUNTAIN COAL <br />~/COMPANYL.L.C. <br />• A Subsidury of Arch Western Resources, LLC <br />July 23, 2004 <br />Mr. James Burnell <br />Colorado Division of Minerals and Geology <br />Office ofMined Land Reclamation <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RECE9i/ED <br />JUL. 2 6 2004 <br />Givisivn of Minerals and Geology <br />West Elk Mine <br />P O Box 591 <br />5174 Highway 133 <br />Somerset, CO 81434 <br />(970) 929-5015 <br />Fax (970) 929-5595 <br />Re: Mountain Coal Company LLC (MMC), West Elk Mine; Permit No: CO-80-007; Request for <br />Phase I Bond Release, Lone Pine Gulch Ventilation Facilities <br />Deaz Mr. Burnell: <br />MCC is requesting Phase I Bond Release for Lone Pine Gulch Ventilation Facilities. This azea covers <br />5.5 acres of private land and is specifically located in the Southeast '/4 of Section 18, Township 13 <br />• South, Range 90 West. Lone Pine Gulch was the site of ventilation facilities for West Elk Mine. <br />These facilities provided ventilation for the west end of the B Seam mine workings (Longwall Panels <br />Nos. 4 through 13A) from 1995 until April 13, 2001. The ventilation fan at Lone Pine Gulch was <br />operated continuously 24-hours per day, 365 days a yeaz. <br />The current permit was originally issued by the Board in July 1981, reissued August 1986, January <br />1993, (Effective August 1991), July 1996, and renewed July 31, 2001. The five-year permit term <br />expires July 31, 2006. The West Elk Mine five-year permit area contains lands in Sections 9-11, 13- <br />30, and 34-36, Township 13 South, Range 90 West, 6`" PM; and Sections 23-26, Township 13 South, <br />Range 91 West, 6`" PM in Delta and Gunnison Counties. The area is found on the USGS 7.5 minute <br />Somerset Quadrangle Topographic Map. The current permit azea encompasses approximately 9,696.3 <br />acres. <br />A stand alone bond for this area was not obtained by MCC. Other bonds in place, through St. Paul and <br />Bondsafe, numbers 400ICF0887 and 5010562, respectively, covered this area. The bonds covered the <br />cost of sealing of two mine portals, installing bulkheads, removing all structures associated with the <br />Lone Pine Ventilation Facilities project, regrading the area to approximate original contours, replacing <br />topsoil, and revegetating the Lone Pine Gulch area. The bonds also included the cost of installing a <br />pond at Lone Pine Gulch (TR 81) that was never built. The bond liability determined by CDMG for <br />this azea is $76,516.96. MCC is requesting a bond release in the amount of $45,937.18, which is 60 <br />percent of that amount. <br />• Initial reclamation began in 1996 with the reclaiming of a 1.0 acre Waste Development Refuse pile. <br />The majority of reclamation in this area, however, began in Apri12002, after the fan and all related <br />structures were removed. Approximately 2.0 acres were reclaimed along the pipeline and powerline <br />corridor, 0.5 acres at the topsoil borrow area, and another 2.0 acres at the portal area. Seeding, <br />