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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS Slurco Corporation has applied for final bond release under the Colorado Surface Coal Mining and Reclamation Act upon completion of reclamation and the ten year liability period for the Canadian Strip Mine. The mine is located in Jackson County, Colorado, approximately 12 miles east of Walden. The legal description of the property is as follows: T8N, R78W, 6's P.M. Section 2: Beginning at the point 1225 feet N89°47'21"E from the NW corner of the SW'/a, Section 2, thence N 89°'21"E, 700 feet, thence S 00°12'39" E, 1500 feet, thence Southwest to a point on the south section line that is 1530 feet S 89°38'00"E of [he SW corner of said SW '/a, thence N89°38'00"W, 1530 feet to the SW corner of said SW '/a, thence N 00°01'03"W, 300 feet, thence N 40°44'00"E, 1250 feet, [hence NE to point of beginning. Containing 65 acres. Section 10: SE'/a NE'/a NE'/a. Containing 10 acres. Section 11: W '/z NW '/a. Containing 80 acres. The permit area covers a total of 155 acres. Of this 80 acres were mined and reclaimed. Mining operations occurred in four phases from 1978 to mid-1984. Reclamation was completed in 1981 for Phases I, II and in 1987 for Phase IV. The sediment control system was reclaimed in 1991 with the removal of Pond 3 and all diversion ditches. Ponds 1 and 2 were approved for retention as permanent impoundments to enhance the post mining land uses of rangeland and wildlife habitat. Phase I bond release was approved on December 22, 1988. Phase II bond release was approved on August I, 1991 for Mine Phases I, II and III and on December 21, 1995 for Mine Phase IV. The loadout in Walden was designated industrial land use and final bond release For this facility was approved on July 14, 1997. The final Phase III bond release application was submitted August 4, 1998 and deemed complete on September 8, 1998. Slurco Corporation published notice of the bond release application for four consecutive weeks in the Jackson County Star from August 6 through August 27, 1998. Slurco Corporation notified pertinent government agencies and all the land owners within and adjacent to the release area of the bond release application as required by Rule 3.03.2(1). No written objections or requests for an informal conference regarding the bond release application were received from the Division. The Division scheduled and conducted a bond release inspection on October 7, 1998. The site inspection was conducted in accordance with Rule 3.03.2(2). Landowners of [he release area and the Office of Surface Mining were notified of the inspection. Canadian Strip Mine 1 November 18, 1998 Permil No. C-81-026 Final Bond Release