|
Powderhorn Coal Company to Snowcap Coal Company, Inc. The Division accepted a corporate surety bond in
<br />the amount of $3,264,149.00 on February 8, 2002. The permit transfer decision became final on April 14,
<br />2002.
<br />Surety Increases
<br />SI-Ol proposed surety increase bond adjustment approval decision was issued June 1, 2001. The decision
<br />was issued based on a cost estimate performed by the Division that indicated a total reclamation liability of
<br />$3,466,239.00. At the time, the bond held by the Division was $2,903,016.00, in the form of two
<br />corporate surety bonds (a $2,603,016.00 surety issued by Frontier Insurance Company, and a $300,000.00
<br />surety issued by Utica Mutual Insurance Company).
<br />SI-02 proposed surety increase bond adjustment approval decision was issued July 27, 2001. SI-02
<br />superceded the previously approved SI-Ol. Based on information provided by the operator, Powderhorn
<br />Coal Company, and accepted by the Division, a total reclamation liability cost of $3,244,980.00 was
<br />calculated. At the time, the bond held by the Division was $2,903,016.00, in the form of two corporate
<br />surety bonds (a $2,603,016.00 surety issued by Frontier Insurance Company, and a $300,000.00 surety
<br />issued by Utica Mutual Insurance Company).
<br />Bond Releases
<br />SL-Ol application was submitted May 21, 2001. The initial application was determined to be incomplete due
<br />to the fact that public notice of the application had not yet been published. The application was deemed
<br />complete on July 12, 2001, following submittal ofproofofpublication ofthe public notice. The required bond
<br />release inspection was conducted August 14, August 15, and August 24, 2001; the inspection report was issued
<br />September 28, 2001. The adequacy review of the application continued to December 14, 2001, when
<br />Powderhom Coal Company (PCC) submitted a letter to the Division officially withdrawing the bond release
<br />application. PCC indicated that the application was withdrawn, based on the Division's stated determination
<br />that no bond release would be granted for the partially reclaimed cameo refuse disposal azeas.
<br />SL-02 proposed approval decision was issued to Snowcap Coal Company, Inc., on August 14, 2003. The
<br />approval was for a partial phase 1 bond release, based on completion or partial completion of facilities removal
<br />and backfilling and grading, and completion of drainage control on 133 acres of approved disturbance azeas.
<br />The Division proposed to release a total of $1,466,510.00, which would reduce the bond amount from the
<br />current total of $3,264,149.00, to $1,797,639.00 that would remain following release. The release amount was
<br />based on reclamation work completed by the operator and verified during the application review, and fiuther
<br />based on an updated reclamation cost estimate performed by the Division in conjunction with the bond release
<br />review. The application was submitted on December 23, 2002, and deemed complete on Febmary 17, 2003.
<br />The bond release inspection was conducted on May 20`" and 21St, 2003. The bond release review process is
<br />described in detail in the August 14, 2003 proposed decision and findings for Partial Phase 1 Bond Release
<br />Application SL-02.
<br />
|