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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />Sun Coal Company applied for a complete bond release for the portion of the pit area <br />that is owned by John and Allie Eilts, as provided for in the Act, subsequent to final <br />reclamation of that area. The mine is located in Routt County, south of State Highway <br />40, approximately five miles southwest of Milner, Colorado. The mine area is located <br />in portions of Sections 14, 23, 24, 25, and 26 of Township 6 North, Range 87 West of the <br />6th Principal Meridian. The land within the permit area is owned by John A. and Allie <br />M. Eilts (24 acres) and Grassy Creek Coal Company (76 acres). <br />Phase I bond release was previously granted for the portion of the pit area owned by the <br />Eiltses. Therefore, the application was submitted, reviewed, and findings made herein <br />for only Phases II and III of bond release for the pit area under Eilts ownership. <br />An application for Phase II and I[I bond release at the Eilts pit area was received by the <br />Division on August 14, 1996. The application was deemed complete on August 27, 1996, <br />after the Division received proof of publication of the applicant's public notice. Sun Coal <br />Company published notice of the bond release application in the Steamboat Pilot once <br />weekly for four consecutive weeks, beginning July 18, 1996. Sun Coal Company also <br />notified land owners within and adjacent to the mine permit area, and other interested <br />parties, of the application for bond release as required by Section 3.03.2(1) of the Rules. <br />On October 1, 1996, the Division transmitted adequacy concerns with the application to <br />Sun Coal Company. The operator responded to those concerns on October 23, 1996, and <br />the response was adequate for the Division to approve the release. <br />No comments, written objections, or requests for an informal conference regarding the <br />bond release application were received by the Division. <br />The Division scheduled and conducted a bond release inspection on September 18, 1996. <br />The site inspection was conducted in accordance with Section 3.03.2(2). Bryan Archer <br />of Sun Coal Company, and his consultant, Michael Savage were present during the <br />inspection. John Eilts, who owns the area subject to the release also attended the <br />inspection, as did Mitch Rollings of the Office of Surface Mining Reclamation and <br />Enforcement. <br />At the beginning of the inspection, Mr. Eilts stated a concern he had with a broken <br />casing on an oil well located roughly 300' west of the pit area disturbance. Mr. Eilts <br />stated he suspects blasting at the Meadows No. 1 Mine may have caused the casing to <br />break. Based in part on the following information provided by the operator, the Division <br />does not believe blasting caused the break. <br />• Blasting was last conducted at the mine in 1981. The well produced oil as late as <br />1994, at which time the tubing for the well was removed. <br />Mwdows No. 1 Mine 3 Phan In Bond Rel~aae <br />