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PROCEDURES AND SUMMARY OF THE REVIEW PROCESS
<br />Peak Project Management submitted this Phase I bond release request (SL-04) for the Northwest
<br />ventilation shaft on behalf of Basin Resources Inc. (BRI). This request was received by the
<br />Division on January 19, 2005. In addition to the information required by Rule 3.03.2(6), the
<br />request included an original version of a report titled Golden Eagle Mine, Northwest ventilation
<br />Shaft Closure (closure report) written by R. Kevin Whipkey of Norwest Corporation. The
<br />request did not include documentation of notification by certified mail to landowners or certified
<br />cross-sections of the site. A proposed public notice was included and, following review by the
<br />Division, the applicant was notified to publish the notice following minor text changes. BRI
<br />published notice of the bond release application in a local newspaper, the Chronicle News, once
<br />weekly for four consecutive weeks, beginning February 3, 2005. Notifications were mailed to
<br />landowners and other parties, including the Las Animas County commissioners and Las Animas
<br />County Planner, by certified, U.S. Mail on February 3, 2005. Copies of the landowner
<br />notifications as required by Rule 3.03.2(1), along with certified receipts, were received by the
<br />Division on February 7, 2005. The Division called the application complete on Mazch 14, 2005.
<br />The operator sent to the Division, via facsimile, proof of publication of the required notice on
<br />Apri126, 2005.
<br />As a result of the landowner notifications, the Division received one objection and request for an
<br />informal conference to the bond release. Landowners Jim and Ann Tatum filed the objection.
<br />The objection was received by the Division on February 17, 2005. This objection was forwazded
<br />to BRI on March 7, 2005. The Tatum objection specifically noted a concern about neazby water
<br />wells as related to the success of the sealing of the shaft. They also objected to the release of any
<br />bond money considering a previous unpaid judgment resulting from Las Animas County District
<br />Court Case #O1CV26 in the amount of $622,000.00 owed to the Tatums by BRI.
<br />On March 15, 2005, the Division notified the applicant and the landowner/objector by certified
<br />mail of the field inspection and informal conference planned for April 12, 2005 at 10 am. Public
<br />notice, at least two weeks prior of the informal conference, was published in the Chronicle News
<br />on March 23, 2005, as required by Rule 3.03.2(4)(6). Due to a significant snowstorm on April
<br />10, 2005, the inspection and informal conference were postponed, as requested by the Tatums.
<br />The inspection and informal conference were re-scheduled for May 12, 2005. Again, all parties
<br />were notified and public notice of the informal conference was published on Apri125, 2005 in
<br />the Chronicle News.
<br />The Division conducted the Phase I bond release inspection at 10 a.m. on May 12, 2005. As
<br />agreed to by all parties during the inspection, the inspection at the site also served as the informal
<br />conference scheduled for 1 p.m. on the same day. A letter from David Berry, Coal Program
<br />Supervisor dated May 17, 2005, to all parties in attendance, details the record of the informal
<br />conference as required by Rule 3.03.2(4)(e). The DMG issued the written inspection document
<br />effective May 17, 2005. The results of that inspection are incorporated by reference in this
<br />written finding. A copy of the inspection report was mailed to BRI, the landowner (Tatums), the
<br />attorney representing BRI (L. McMillan of Shaw and Quigg) and Bob Montgomery of BRI.
<br />During the inspection, the Tatums requested any documentation of the measured water level in
<br />the nearby windmill well. The Tatums also requested a copy of the closure report written by
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