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requirements. None of the areas observed exhibited significant settling, cracking or other indicators of <br />instability, and there were no areas of excessive erosion. There were no depressions evident that would <br />impound water on the backfilled slopes (other than the small track-hoe gouges approved for seedbed <br />preparation soil roughening, and approved sediment control structures remaining in place at certain <br />locations), and there were no remnant highwalls. Apparent stability of the various backfilled locations is <br />addressed in more detail in the Phase 1 Specific Tonics section of this document. <br />(4) The degree of difficulty and estimated cost to complete any remaining reclamation--- <br />These factors were evaluated during the review. The Division has prepared an updated reclamation cost <br />estimate that reflects the proposed bond release, based on documented completion of reclamation tasks <br />pertinent to Phase 1 bond release. The entire reclamation cost estimate (94 pages) and supporting <br />documentation can be viewed at the Division offices in Denver and Grand Junction. The current bond <br />held by the Division is a $3,264,149.00 corporate surety. In August 2002, the Division calculated a total <br />reclamation liability amount of $3,319,133.00, in association with review of Permit Renewal 4 (RN-4). <br />Approval of RN-4 has not yet been issued, and the liability amount calculated in August 2002 did not take <br />into account any of the liability release requested in the bond release application. <br />Based on information provided in the bond release application and verified during the bond release <br />inspection and associated evaluation, the Division finds that deletion or modification of a large number of <br />the cost items included in the August 2002 estimate is appropriate. In addition, a number of new cost <br />items associated with a recently approved technical revision (TR-42) are included in the updated cost <br />estimate. The updated cost estimate prepared by the Division projects a total remaining liability amount <br />of $1,797,639.00, This represents a proposed release amount of $1,466,510.00 (approximately 44,9% of <br />the currently held bond amount). The cost estimate is available for review at the Division offices in <br />Denver and Grand Junction. <br />Bond Release Compliance Evaluation: Phase I Specific Topics <br />(1) Structural demolition/removal in accordance with approved reclamation plan-- <br />All structural demolition/removal work claimed in the bond release application submittal was observed <br />during the bond release inspection to have been completed in accordance with permit requirements. <br />Structural demolition work is listetl in Tab 3 of the bond release application within the 6 page cost <br />estimate table under the following sub-headings: ROADSIDE SOUTH-REMOVE STRUCTURES, <br />SOUTH FAN-REMOVE STRUCTURES, 2 WEST PORTALS-REMOVE STRUCTURES, NORTH <br />DECLINE-REMOVE STRUCTURES, OVERLAND CONVEYOR-STRUCTURES, NORTH PORTAL- <br />REMOVE STRUCTURES, AND UNIT TRAIN LOADOUT-REMOVE STRUCTURES. <br />Status of the various mine portals was assessed during the bond release inspection. The North Mine <br />(Cameo) portals were sealed and plugged with dirt backfill in February 2000. In early December 2001, <br />there had been a methane fire incident in the vicinity of the sealed portals. Evidently, cutting torch <br />operations associated with removal of a remnant metal fan shaft structure ignited methane within the <br />structure. The fan shaft had been backfilled at its lower end from inside the mine, but methane had <br />apparently seeped from the workings into the shaft and accumulated in the structure. The operator had <br />immediately reported the fire to the Palisade Fire Department, MSHA, and DMG. The fire was <br />extinguished with water and foam, and the metal fan shaft frame was partially filled in with concrete, <br />completely covering the opening at the base of the frame structure. Minor cracking was noted behind the <br />retaining wall aver the top of the backfilled conveyor entry at the time of the fire incident. The crack was <br />filled in with dirt and dirt was used to fill in the remainder of the fan shaft frame shortly after the fire was <br />extinguished. The fire incident and response, and follow-up investigation indicating that the problem had <br />been properly abated are fully described in a DMG inspection report dated 12/24101. The fan shaft frame <br />and the sealed portals were deeply buried by backfilling of the portal decline in 2002. <br />Phase I Bond Release 9 August 15, 2003 <br />