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FINDINGS OF THE <br />COLORADO DIVISION OF MINERALS AND GEOLOGY <br />PHASEIBOND RELEASE <br />Requirements associated with Phase I bond release are addressed within Rule 3.03.1 and in the <br />Division's 1995 Guideline Regarding Selected Coal Mining Bond Release Issues. Rule 3.03.1(1) allows <br />for partial release of a bond when reclamation covered by a portion of the bond "...has been <br />accomplished as required..." in accordance with a specified schedule. The schedule for phased bond <br />release is outlined in 3.03.1(2), which allows for up to 60% of the applicable bond amount to be released <br />upon successful completion of backfilling, regrading, and drainage control in accordance with the <br />approved reclamation plan. Rule 3.03.1(3)(b) specifies that no more than 60% of the bond shall be <br />released until specific demonstrations regarding suspended solids levels have been made. Rule <br />3.03.1(3)(d) specifies that sufficient performance bond be retained to ensure that the Division would be <br />able to complete the approved reclamation plan in the event of bond forfeiture. Backfilling and grading <br />compliance is the primary focus of Phase I bond release. Facilities demolition and removal compliance <br />(including portal and drill hole sealing) is also included in Phase I bond release evaluation, because the <br />facilities demolition and removal in a particular location must be completed before the backfilling and <br />grading can be accomplished. <br />The bond release guideline expands on the referenced regulatory criteria for Phase I bond release and <br />addresses specific documentation to be provided by the operator, and evaluation to be performed by the <br />Division, regarding compliance with backfilling and grading requirements of the permit and regulations. <br />In addition to the specific topics pertinent to Phase I bond release, Rule 3.03.2(2) addresses certain items <br />that must be considered by the Division in the evaluation of any bond release request (Phase I, Phase II, <br />or Phase III). These items are: <br />Results of past monthly inspections; <br />2. Surface and ground water monitoring data; <br />3. Whether pollution of surface or subsurface water is occurring, the probability of such <br />future pollution and the estimated cost to abate pollution; <br />4. Stability of reclaimed surface lands; and <br />5. The degree of difficulty and estimated cost to complete any remaining reclamation. <br />Specific discussion of the operator's compliance with regulatory provisions applicable to Phase I bond <br />release is included below. <br />Bond Release Compliance Evaluation: General Topics <br />(1) Results of past monthly inspections--- <br />The Division has issued two enforcement actions at the Roadside Mine since the permit was transferred <br />from Powderhorn Coal Company to Snowcap Coal Company in April 2002; both enforcement actions <br />were issued on September 16, 2002, as a result of observations made during a single DMG inspection. <br />NOV CV-2002-018 was issued for failure to properly construct or maintain disturbed area drainage <br />collection pipes at the South Mine facilities area. NOV CV-2002-019 was issued for failure to maintain a <br />light use road to control or prevent erosion and siltation in the vicinity of the Roadside Refuse Pile soil <br />borrow area. Both NOV's were properly abated within required time frames and were terminated by <br />DMG, and the civil penalties were paid by SCC. There are no outstanding NOV abatements; all <br />Phase I Bond Release 6 August 15, 2003 <br />