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PROPOSED DECISION
<br />The Colorado Division of Minerals and Geology proposes to approve an application for partial Phase I
<br />bond release submitted by Snowcap Coal Company, Inc., for the Roadside North and South Portals Mine.
<br />The proposed decision is based on successful completion of drainage control, backfilling and grading,
<br />andlor facilities removal on approximately 133 acres, within specified portions of the permit area as
<br />described in the bond release application. The mine is an underground coal operation located
<br />approximately three miles northeast of Palisade, Colorado, at the Interstate 70, Cameo Exit No. 46. The
<br />permit area is split east and west by the Colorado River and I-70, and contains approximately 10,436
<br />acres within the following lands:
<br />T10S, R98W., 6'" P.M.: Sections 20, 21, 22, 23, 26, 27, 28, 29, 34, 35
<br />T11S, R98W., 6'" P.M.: Sections 1, 2, 11, 12, 13, 14
<br />T11S, R97W., 6`" P.M.: Sections 6, 7, 18
<br />T1S, R2E, Ute P.M.: Section 1
<br />The permit area is contained within the U.S. Geological Survey 7.5 minute Cameo and Palisade
<br />Quadrangle maps.
<br />The current performance bond for the operation is $3,264,149.00, in the form of a corporate surety, which
<br />applies to the entire permit area. The Division is proposing to release a total amount of $1,466,510.00,
<br />based on successful completion of drainage control, bac~lling and grading and/or facilities removal
<br />within specified locations as described in the bond release application. This amount represents
<br />approximately 44.9% of the curcent bond amount held. The operator had requested release of up to
<br />$1,600,000.00, which included costs associated with topsoil replacement at a number of locations. The
<br />Division's proposed decision specifically excludes any liability release for topsoil replacement, which is
<br />properly evaluated as a component of Phase II, but not Phase 1 bond release.
<br />Any person with a valid legal interest which might be adversely affected by this proposed decision may
<br />request a formal public hearing before the Mined Land Reclamation Board in accordance with Rule
<br />3.03.2(6). The request must be in writing and must state, with reasonable specificity, the reasons for
<br />requesting such a hearing. All requests must be submitted to the Colorado Division of Minerals and
<br />Geology, 1313 Sherman Street, Room 215, Denver, Colorado, 80203. Public notice of this proposed
<br />decision will be published twice in the Grand Junction Sentinel as soon as possible. Requests for public
<br />hearing must be received by the Division within thirty days of the first publication in the Grand Junction
<br />Sentinel. If no hearing is requested within that thirty days, the Division's decision will become final.
<br />Questions regarding the proposed decision may be directed to Dan Mathews at the Division's Grand
<br />Junction Office, (970) 242-5025.
<br />Phase I Bond Release 2] August 15, 2003
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