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<br />As required by Rule 3.03.2(5)(a), this document constitutes written <br />notification of the Division of Minerals and Geology (Division) <br />decision to deny the Phase II/III Bond Release request for Block D <br />(SL-04) for Mine 1, Mine 2, and Eckman Park, Permit # C-81-071, <br />submitted by Colorado Yampa Coal Company (CYCC) on January 10, <br />1994. The reasons for this denial are as outlined below. <br />Rule 3.03.1(2)(a) allows for up to sixty percent of the applicable <br />bond to be released when the permittee successfully completes <br />backfilling, grading and drainage control. All Block D acreage was <br />included in the Phase I bond release granted as per the final <br />publication dated September 17, 1987. Rule 3.01.1(3)(b) does not <br />allow more than sixty percent of the applicable bond to be released <br />as long as the lands subject to the release are contributing <br />suspended solids to streamflow outside the permit area in excess of <br />levels determined on adjacent non-mined areas. The operator <br />submitted computer modelling simulations comparing sediment <br />production from the reclaimed areas as compared to revegetation <br />reference areas. This information was reviewed by the Division and <br />questions and concerns were forwarded to the permittee on March 22, <br />1994. At this time, no response to these issues has been received <br />by the Division. <br />Rule 3.03.1(2)(c) allows for any remaining portion of bond to be <br />released when the "permittee has successfully completed all surface <br />coal mining reclamation operations in accordance with the approved <br />plan and the final inspection and procedures of 3.03.2 have been <br />satisfied. This shall not be before the expiration of the period <br />specified for revegetation responsibility in 3.02.3" Rule 3.02.3 <br />defines the period of responsibility as ten years and until the <br />permittee has met the revegetation requirements of Rule 4.15. <br />Included in the initial application were vegetation data collected <br />by the operator to demonstrate that the permittee has met the <br />requirements of the approved permit with regard to re-establishing <br />vegetation on the disturbed areas of Block D. <br />Review of the map and text discussion submitted in conjunction with <br />the Block D bond release application reveals that the acreage <br />included in Block D has met the 10 year liability period for <br />revegetation responsibility. Data and text review reveals that <br />vegetation sampling transects were randomly located using the <br />proportional allocation method to determine vegetative cover and <br />production and thereby demonstrate compliance with Rule <br />4.15.7(2)(c). However, inspection of the data reveals that, in one <br />case, less than a proportional number of transects were located in <br />one reclamation parcel which was below the cover value of the <br />reference area in the first sampling year and below the production <br />value of the reference area in both sampling years. In order for <br />a sample to be representative of a population it must follow the <br />principle of randomness (Steele and Torrie, p. 9). Improper use of <br />the proportional allocation method for Block D thus has added a <br />