<br />On September 9, 1992, CYCC submitted an application for a partial Phase 11 and a partial Phase III bond
<br />release on an area of Energy Mine No. 2 designated Block A, SL-O1. Upon review of the data submitted
<br />for Block A, the Division denied the bond release on approximately 313 acres comprising this block.
<br />Reasons for denial of the application included a lack of sufficient statistical data documenting successful
<br />revegetation, lack of successful sediment demonstration, and failure to reclaim ditches not approved to
<br />remain as permanent features. The Division issued the proposed decision on July 18, 1994.
<br />CYCC submitted an application for a Phase II and Phase III bond release of the Eckman Park, Energy
<br />Mine No. 1, and Energy Mine No. 2 (SL-02), on December 15, 1992. Problems with non-random
<br />distribution of vegetative transect data, failure to adequately provide sedimentology demonstration for all
<br />areas requested for release, and failure to permit remaining structures as permanent (pond M), resulted in
<br />the Division's denial of the bond release application.
<br />A partial Phase I bond release for the backfill and grading of [he Eckman Park Mine and Energy Mine No.
<br />l portion of the permit was approved on October 3l, 1446 (SL-03}. The partial Phase I approval reduced
<br />the bond amount for the Eckman Park Mine, Energy Mine No. I and Energy Mine No. 2 complex from
<br />$10,585,393.00 to $8,880,000.00. Subsequent phased bond releases in other portions of the Eckman Pazk
<br />mine complex have reduced the reclamation liability for the entire complex to $4,199,557.00. On April 4,
<br />1997, CYCC submitted a replacement bond, drawn off Aetna Casualty and Surety Co., in the amount of
<br />$5,939,550.00.
<br />On January 10, 1994, CYCC submitted an application for a partial Phase II and a partial Phase [II bond
<br />release on 164.3 acres of pastureland designated "Block D" located at the Energy Mine No. 2, SL-04. On
<br />June 9, 1995, the Division denied this bond release request. The basis for denial was due to the lack of
<br />statistically adequate data demonstrating that the revegetation standazds had been met, and deficiencies in
<br />the sedimentology and water quality demonstrations provided.
<br />CYCC submitted a partial Phase I bond release application, SL-O5, on August 15, 1996. This application
<br />requested a reduction in the bond of $6,353,035.00 for backfill and grading work conducted at the
<br />Eckman Park Mine, Areas 51 and 61. The Division approved bond release of $4,645,843.00 for this bond
<br />release application, on December 6, 1996.
<br />CYCC applied for a partial Phase II and a partial Phase III bond release for the Energy Mine No. 2 on
<br />September 15, 1997 (SL-06). The Division approved Phase II and III bond release for 477.4 acres of the
<br />Energy Mine No. 2 area on March 30, 1998. SL-Ob approved bond liability release of $95,480.00
<br />An application for a partial Phase II and a partial Phase III bond release (SL-07) for the Eckman Park and
<br />Energy Mine No. 1 area was received by the Division on June 7, 2000. The application was found
<br />complete on June 13, 2000. The public notice ran in the Steamboat Pilot four consecutive weeks,
<br />beginning April 26, 2000 through May 17, 2000. CYCC also notified landowners within and adjacent to
<br />the mine permit area, and other interested parties of the application for bond release, as required by Rule
<br />3.03.2(1). CYCC is requesting release of $4,160,617.
<br />Colorado Yampa Coal Company: SL07 Findings I I/00 page 3 c:\jhb\C081071\SL07fnd doc
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