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Task 030. Demolish the office building (Oak Creek area).
<br />Task 031. Seal piezometers.
<br />Task 032. Topsoil office building area.
<br />Task 033. Revegetate office building area.
<br />Application of Bond Release Phase Limits to Bond Release Request
<br />Before any bond releases were approved, the cost of reclamation of disturbance within the 3.3-
<br />acre bond release area was $553,849. SL-08 approved release of $327,686 of the $553,849 in
<br />recognition of the demolition of structures. Phase I, II, and III bond release is being requested for
<br />the remaining $226,163. Section 3.03.2 does not limit the amount of bond that may be released in
<br />a Phase III release; therefore, the entire dollar amount applicable to the 3.3-acre of the bond
<br />release area is eligible for bond release, on the condition that all other bond release requirements
<br />are met.
<br />Attachment 1 is a post-SMCRA Bond Release History of the Edna Mine. The current
<br />reclamation liability is $3,071,961, and the Division currently holds a reclamation bond from
<br />P & M in that amount. By this SL-09 action, the Division proposes to release $226,163 of the
<br />bond, leaving a bond liability of $2,845,798.
<br />Bond release amounts are limited by percentage thresholds of applicable bonds. Also indicated
<br />on Attachment 1 is information that the reclamation bond release limiting threshold amounts for
<br />percentages of applicable bond are not exceeded by the cumulative bond releases, summarized as
<br />follows:
<br />A licable Bond Amount = $7,171,716
<br /> Phase I (60%) Phase II (25%) Phase III (15% Total
<br />Threshold $4,303,030 $1,792,929 $1,075,757 $7,171,716
<br />Cumulative
<br />Release through
<br />ro osed SL-09 $3,749,675 $350,431 $225,812 $4,325,918
<br /> $2,845,798
<br />The amount of bond remaining after bond release must be sufficient for a third party to complete
<br />the reclamation. Attachment 2 is a summary, in the total amount of $2,728,236, of the current
<br />cost estimate of reclamation associated with tasks for which no bond release has been approved.
<br />The amount of bond required to be retained by this proposed decision, $2,845,798, is more than
<br />the cost of remaining reclamation or work accomplished but for which no bond releases have
<br />been processed.
<br />In addition, there is a requirement to retain a minimum of $10,000 on any bond until all work is
<br />completed [Section 3.03.1(4)]. The retention of $2,845,798 fulfills this requirement.
<br />V. PROPOSED DECISION
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