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• Walker to File C-81-019, SL-03 <br />August 15, 2001 <br />Page 2 of 9 Pages <br />Rule 3.03.1(2) The application is in compliance with this rule. See [he Rules for the complete and <br />contiguous text of this rule. <br />The marim+mr amount under performance bonds applicable to an increment or a pernrit aren which <br />maybe released shall be limited to the following schedule: <br />Rule 3.03.1(2)(b) The application is incompliance with this Rule. See the Rules for continuous text. <br />Up to eighty five percent of the applicab/e bond amoutrt There is no request for any release of the <br />$16,000,000 perfotmance bond on the permit. Release of liability for seeding for 762.1 acres is <br />requested. The value of such work is estimated by the Division to be approximately $342,160 <br />(reference Task 100 of the 2000 Mid-term Review Reclamation Cost Estimate, $448.92/acre x 762.1 <br />acre = $342,160). However, the actual amount of liability on the reclamation cost estimate can only <br />be reduced by 20% of this value [see Rule 3.03.1(3)(a) below]. <br />shall be released upon the establishment of vegetation which supports the approved postmining land <br />use The postmining land use is rangeland and wildlife (PAP page 2.05-60). The application <br />demonstrates that this requirement has been met (see referenced memorandum, Binns to Walker, of <br />• 12/29/00). <br />and which meets the approved success standard for cover, pursuant to 4.15.8, meets applicable <br />productivity standards for prime farmlands ar alluvial valley floors pursuant to 3.03./(3)(b), or <br />croplands pursuant to 4./5.9. With the exception of prime farmlands, evalr+ntion of vegetation <br />establishment pursuant to this paragraph is based ort statistically valid drua collected during n <br />single year of the liability period; and The application demonstrates that this requirement has been <br />met (see referenced memorandum, Binns to Walker, of 12/29/00). <br />Rule 3.03.1(3)(a) When determining lire amount of bond to be released, the Board or Division shall <br />retain that amount of bond for the revegeaated aren which would be sufficient for a third party to <br />cover the cost of reestablishing revegetation at any time during the period specified far permittee <br />responsibility for revegetation described in 3.D2.3. The value of work accomplished is estimated by <br />the Division to be approximately $342,160 (reference Task 100 of the 2000 Mid-term Review <br />Reclamation Cost Estimate, $448.92/acre x 762.1 acre = $342,160). However, this rule requires the <br />retention of bond in the same amount until Phase III bond release. 120% of this amount was included <br />in the original bond estimate (20% failure rate). Thus the amount of liability released by this action <br />represents the 20% reseeding costs or $68,432 (20% of $342,160). <br />Rule 3.03.1(3)(b) No more than sixty (60) percent of the bond shall be released so tong as the lands <br />to which rite release would be applicable are contributing suspended solids to streamflow or runoff <br />outside tl:e permit area i+r excess of premining levels as determined by baseline data or in excess of <br />levels determined on adjacent nonmined areas; until soil productivity for prime farndands has <br />