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In August, 2001, the Division received an application for a partial Phase II & III bond release from Western Fuels-Colorado for 215.5 acres Phase III; 24.06 acres undisturbed, and 67.95 acres Phase II, at the New Horizon Mine 1. The decision to approve became final in December, 2001. (SL07) On November 21,2001, the Division received an application from Western Fuels-Colorado, LLC, requesting Phase I bond release on 85.64 permitted acres at the New Horizon Mine 2 area (SL-08). The application was incomplete and then later withdrawn due re-disturbance of some land near pond 008. The application was then re-submitted on May 20, 2002, and deemed complete on August 8, 2002, after the Division received proof of publication of the applicant's public notice and all appropriate maps. Western Fuels-Colorado published notice of the bond release application in The San Miguel Basin Forum once weekly far four consecutive weeks, beginning July 25, 2002. Western Fuels-Colorado also notified landowners within and adjacent to [he mine permit, and other interested parties of the application for bond release, as required by Rule 3.03.2(1). The Division did no[ receive any written requests for an informal conference regarding the bond release application, however; one comment was received regarding the retention of pond 007 for beneficial use by San Miguel Power. The Division scheduled and conducted a bond release inspection on September 18 at 10:00 AM. The site inspection was conducted in accordance with Rule 3.03.2(2). Present for the inspection were Ross Gubka, WFC; Ward Burbridge, landowner; Marvin Walisky, San Miguel Power; and Harry Ranney, DMG. No other parties including the OSM were present although all were notified previously of the inspection. IL CRITERIA AND SCHEDULE FOR BOND RELEASE: PHASE I Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, re-grading, and drainage control in accordance with the approved reclamation plan." Post-mining topography for the New Horizon Mine 2 azea was approved for Phase 1 bond releases in 1996 (SL-04) 56.0 acres, 1997 (SLOS) 67.4 acres, and 1999 (SL06) 43.4 acres. The post-mining land use for this 85.64 acres has been approved as irrigated pasture and cropland. The legal description of this parcel is as follows: A tract of land in Montrose County, Colorado, beginning at point A; said point lies S 52°15'01" E, 843.41' from a NW corner S6,T46N,R15W; thence N 90d00'00" E a distance of 1436.33 ; thence S 45d14'S3" W a distance of 102.01 ; thence S 09d35'09" W a distance of 747.88 ; thence S 06d46'27" W a distance of 1013.67 ; thence S 59d29'S2" E a distance of 336.80; thence S 18d00'20" E a distance of 158.38 ; thence N 88d40'20" W a distance of 27.16 ; thence N 88d40'20" W a distance of 936.67 ; thence N 88d24'S5" W a distance of 782.23 ; thence N Ol d23'33" W a distance of 537.73 ; thence N 81 d57'04" W a distance of 408.96'; thence N Ol d48'06" E a distance of 1231.36 ;