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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />Westem Fuels-Colorado applied for Partial bond release under [he Colorado Surface Coal Mining Reclatna[ion Act <br />following reclamation of the New Horizon Mine. The mine is located in portions oF. Section 25, T47N,R16W, and <br />Section 6, T46N, RI S W, NMPM, in Montrose County. <br />In April, 1989, Peabody Coal Company, owners of the mine at that time, applied for and received a Release of <br />Liability on 42.2 acres which had a land use change [o industrial use (County Landfill). <br />In January, 1994, Westem Fuels-Colorado had a similar release of liability on 14.2 acres, for the Montrose County <br />Landfill, in 1994. <br />Irt December, 1994, Westem Fuels- Colorado applied for and received a Phase I bond release on 215.5 acres at the <br />New Horizon Mine 1. <br />In February, 1996, the Division received a complete application for another Phase I bond release from Westem <br />Fuels-Colorado for 51.8 acres at the New Horizon Mine 2. "fhe decision to approve became final on August 6, <br />1996. <br />In October, 1997, The Division received an application for Phase 1 bond release from Western Fuels-Colorado for <br />67.4 acres at the New Horizon Mirte 2. The decision to approve became final in February, 1998. <br />An application for Phase 1 bond release (SL-06) was received by the Division on February 23, 1999. The <br />application was deemed complete on June 17, 1999, after the Division received proof of publication of the <br />applicant's public notice and all appropriate maps. Western Fuels-Colorado published notice of the bond release <br />application in The San Miguel Basin Forum once weekly for four consecutive weeks, beginning March I I, 1999. <br />Western Fuels-Colorado also notified land owners within and adjacent [o the mine permit azea, and other interested <br />parties of the application for bond release, as required by Rule 3.03.2(1). <br />No comments, written objections, or requests for an informal conference regarding [he bond release application <br />were received by the Division. <br />The Division scheduled and conducted a bond release inspection on July I5. 1999. The site inspection was <br />conducted in accordance with Rule 3.03.2(2). Present for the inspection were Ross Gubka and Hany Ranney, DMG <br />and Randal Pair, OSM. No land owners were present although all were notified previously of [he inspection. <br />I1. CRITERIA AND SCHEDULE FOR BOND RELEASE <br />Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released when the pemrittee <br />successfully completes backfilling, regrading. and drainage control in accordance with [he approved reclamation <br />plan." With regard to Phase 1 bond release, the approved reclamation plan for the New Horizon Mine calls for <br />mining and backfilling operations [o be performed concurrently. A truck and shovel operation will remove [he <br />overburden and parting material to a previously mined area to be backfilled. Backfilled material will be placed to <br />minimize effects on postmining vegetation and ground water, minimize of}~site effects and support the approved <br />postmining land use. Postmining slopes will not be uniform but will approximate the general nature of the <br />premising topography. <br />All major drainages that are disturbed by mining activities are to be reclaimed to approximate [he premising <br />configuration and to blend in with the undisturbed drainage above and below [he area to be reclaimed. The drainage <br />