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PROPOSED DECISION
<br />In accordance with Rule 3.03 and in accordance with Division of Minerals and Geology (Division)
<br />policy, this document constitutes written notifica[ion of the Division's decision to approve an
<br />industrial Land Use bond release, and a release of reclamation liability of areas overlying much of
<br />the underground workings south of Highway 12, at the Golden Eagle Ivtine, (1/ C-81-O13). The
<br />rationale for this approval are as outlined below.
<br />BACKGROUND
<br />The Golden Eagle Mine is a reclaimed underground mine which is permitted and operated by Basin
<br />Resources, Inc. (BRI). The mine is located in Las Animas County, approximately 4 miles wes[ of
<br />the town of Weston, in portions of sections 15-22 and sections 27-34, T33S, R67W. The mine
<br />ceased coal production on December 31, 1995. Structure demolition and site reclamation was
<br />conducted during 1996 and early 1997. 59 acres were disturbed and reclaimed a[ this site.
<br />This bond release request (SL-02) consists of two, main parts; a release of liability for lands
<br />classified and approved for aPost-mining land use of industrial (gas extraction), and a release of
<br />liability of lands south of Highway 12 which overlie areas of underground workings. Excluded from
<br />liability release are those areas of disturbance which are subject to the 10-year liability period and
<br />overlie underground workings. These areas will continue to be subject to the liability period of Rule
<br />4.15.7(5) and Rule 3.02.3. All areas of industrial use subject to the release are shown on Map BR-
<br />2, located in sections 28, 29, 32, and 33 of T33S, R67W. The Bleeder Return is specifically
<br />excluded from the industrial land use portion of this bond release request. Included in SL-02 is a
<br />reduction in the permit area both north and south of Highway 12. Undisturbed lands, outside the
<br />new, proposed permit boundary, which overlie azeas of underground workings are located in
<br />sections 19, 28, 29, 30, and 32 of T33S, R67W.
<br />RECLAMATION BOND HISTORY
<br />A Phase I bond release (SL-O1) for the Golden Eagle mine was approved on December 11, 1997.
<br />This bond release reduced the reclamation liability by $676,874.00, or sixty percent of
<br />$1,128,124.00. As a result of SL-O1, the reclamation cost liability was reduced to $477,085.00.
<br />A detailed explanation of how the reclamation cost liability was reduced to this value can be found in
<br />the Phase I Bond Release Findings (SL-O1, December 11, 1997), under the heading Reclamation
<br />Bond History.
<br />This bond release (SL-02) requests release of bond monies attributable to areas with an approved
<br />land use of industrial. The total amount of bond held by the Division for these areas is $128,911.47.
<br />One site, NW-1, or the Bleeder Return, is excluded from this bond release, as the proper
<br />documentation for this site, as required by Stipulation 76, has not been submitted to DMG.
<br />$17,421.00 is dedicated to reclamation at the Bleeder Return, which when subtracted from
<br />$128,911.47, leaves an amount requested for release of $111,490.00. No bond monies are
<br />associated with the release of areas which overlie underground workings.
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