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1.0 INTRODUCTION
<br />Basin Resources, Ina (Basin) is submitting this information as a request to the Colorado Division of
<br />Minerals and Geology (CDMG) for approval of year 2005 sampling event data (year 9 since initial
<br />seeding) for proposed Phase III bond release on the Alluvial Valley Floor (AVF) and Rangeland
<br />Reclaimed Areas at Basin's Golden Eagle Mine (Pemut No. C-81-013). An azea is eligible for Phase III
<br />bond release when Phase I and Phase II bond release has been granted; the fulfillment of the 10-yeaz
<br />liability period since initial seeding; documentation of revegetation success; proof ofpost-mining land use
<br />capability; and a minimum of 5 years since the last seeding, fertilization, and rill and gully repair which
<br />proves that erosion has been demonstratively controlled. Basin believes it has met all of these conditions
<br />on the AVF and Rangeland Reclaimed Areas except fulfillment of the 10-yeaz liability period, which will
<br />be satisfied in the yeaz 2006.
<br />The Golden Eagle Mine is a surface coal mine located in Las Animas County off State Highway 12,
<br />approximately 25 miles west of Trinidad, Colorado. The permitted area of the Golden Eagle Mine covers
<br />5,674 acres, located in Sections 15, 16, 17, 18, 19, 20, 21, 22, 27, 28, 29, 30, and adjoining aeeas to the
<br />south in Township 33 South, Range 67 West. The area actually disturbed by mining and mine-related
<br />activities encompasses 66.17 acres in Sections 28, 29, 30, and adjoining aeeas to the south in Township 33
<br />South, Range 67 West.
<br />Coal extraction was terminated on December 31, 1995, with the existing stockpiles of coal removed from
<br />the site the following month. All on-site industrial equipment and structures were dismantled and
<br />removed by November 1996.
<br />Reclamation of the disturbed mine site was completed in two phases. The fast phase involved backfilling,
<br />recontouring, redistributing topsoil, and seeding and mulching of the surface facilities azea and sediment
<br />ponds 002 and 005. Drainage controls were established, and no erosion problems have occurred on the
<br />reclaimed areas. Seeding and mulching of the reclaimed aeeas occurred in the fall of 1996, with limited
<br />seeding on the coal waste pile in May of 1997.
<br />The second phase of reclamation involved removal and reclamation of sediment ponds 003 and 004, and
<br />reclamation of the diversion ditches which cazried surface water to the ponds. Activities included
<br />backfilling, recontouring, redistributing topsoil, seeding, and mulching. This phase of the reclamation was
<br />completed in late 1998. All of the reclamation pazcels aze displayed on Figure 1.
<br />Basin was eligible for Phase I bond release upon completion of mine-related reclamation activities.
<br />Consequently, on September 2, 1997, Basin filed an application with the CDMG for Phase I bond release.
<br />Release of $676,874 was granted on December 11, 1997. This release reduced the remaining bond
<br />amount to $477,085. A second Phase I bond release request was submitted by Basin on May 8, 1998.
<br />CDMG granted release of $111,490 on October 16, 1998, reducing the amount of bond liability to
<br />$365,595.
<br />Basin was eligible for Phase II bond release upon proving successful establishment of approved
<br />vegetation species on each reclaimed area with total cover of at least 90 percent of each corresponding
<br />reference area, and demonstrating that erosion was controlled on the reclaimed areas. Basin filed an
<br />application for Phase II bond release on August 25, 2000. Release of $192,501 was granted in late 2000,
<br />thereby reducing the remaining bond amount to $173,094.
<br />292 -Golden Eagle Phase 111(10.07.05) 1-1
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