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II. BACKGROUND AND HISTORY OF THE COAL BASIN MINE <br />Historic mining in the Coal Basin azea began in 1895 and continued unti11908 when production ceased <br />for many years. In 1956 Mid-Continent Coal and Coke Company re-opened the mine and began <br />producing coking coal. The Coal Basin Mine, operating under the permit No. C-1981-031, consisted <br />of five adjacent underground mines, a twin rock tunnel entry, a prepazation plant, two coal waste piles, <br />one development waste pile, an extensive road system and numerous ancillary facilities. The five <br />mines were drift mines, driven from the outcrop down-dip through the western flank ofCoal Basin and <br />under Huntsman Ridge. These five portal azeas were located along the outcrop at an elevation of <br />approximately 10,000 feet. Mine 1 and Mine 2 were connected to each other and to the rock tunnel. <br />Mines 3, 4 and 5 were independent of each other. Coal, personnel and equipment were brought to the <br />surface through one bore of the rock tunnel. The main surface facilities were located at the base of the <br />mining operation at an elevation of approximately 8200 feet, neaz the confluence of Coal and Dutch <br />Creeks. The support structures and facilities serviced all the mining operations and included the rock <br />tunnel, rock tunnel waste rock pile, rock tunnel ponds, the Lamphouse, coal stockpile, waste piles, coal <br />wash/preparation plant, the office and the wazehouse. The support structures and facilities area aze <br />located primarily on the privately owned land subject to this termination of jurisdiction. <br />The Coal Basin Mine is a formerly permitted mining operation. The operator of the mine, Mid- <br />Continent Resources declazed bankruptcy in 1992. Subsequently, the Colorado Mined Land <br />Reclamation Board revoked the operating permit, and forfeited the reclamation bond in 1993. As a <br />result of these actions, the Division assumed the task of accomplishing reclamation of the site in <br />1994, as provided for in Colorado Surface Mining Control and Reclamation Act. <br />Mid-Continent Resources began reclamation operations at the Coal Basin Mine in 1991 and <br />continued in 1992 and 1993. In 1994 after bond forfeiture, the Division took over reclamation <br />operations. Reclamation on the privately owned lands was completed in 1999. <br />Reclamation was substantially funded by proceeds of the Mid-Continent Resources bankruptcy <br />proceeding. The bankruptcy plan provided funds for reclamation of the site; however, funds were <br />available only as liquidation of the company assets was completed. As a result, funding for <br />reclamation work was limited on an annual basis, and only became available periodically. <br />Land ownership within the Coal Basin Mine permit boundary was a combination ofprivately owned <br />lands and public lands administered by the U.S. Forest Service, White River National Forest. In <br />general, land ownership was not a factor in determining when or how an individual azea or facility <br />would be reclaimed. The only time that land ownership became a factor was in determining timing <br />of reclamation of a portion of the privately held property. At one point during the reclamation <br />process, the bankruptcy trustee objected to a proposed reclamation project, and subsequently <br />withheld bankruptcy funds earmarked for reclamation. As a result of a 1997 suit filed in District <br />Court, reclamation work was substantially stopped for the 1998 construction season. The District <br />Court action (Boazd of County Commissioners v. Mid-Continent Resources, Inc v. MidCon Realty, <br />LLC v. State of Colorado; 97 CV 131-1), (Pitkin County District Court), resulted in a Settlement <br />Agreement which, consistent with the statutory reclamation requirements of the Colorado Surface <br />Coal Mining Reclamation Act, specified the reclamation activities that the Division would undertake <br />