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<br />V' • • • • •
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<br />Summary of Stipulation Status:
<br />Resolved: 2, 3, 4, 5, 7, 8, 9, 10, 15, 17, 18, 19, 29, 30, 32, 33, 34, 35,
<br />36, 37, 38, 42
<br />Resolved with Conditions: 1, 6, 11
<br />Ongoing: 12, 20, 21, 22, 23, 24, 26, 39, 40, 43, 47
<br />Advisory: 28, 4], 44, 45, 46
<br />Not Complete: 13, 14, 16, 25, 27, 31
<br />Not in Compliance: None
<br />III. Bonding
<br />The Division has reviewed both the amount and conditions of the bond for the
<br />Mt. Gunnison Mine in accordance with Rule 3.02.2(4). The Division finds that
<br />West Elk Coal Company needs to reevaluate and resubmit the performance bond
<br />(if reevaluation dictates) based on the following two concerns:
<br />a. Additional bond will be needed to cover the costs of importing
<br />approximately 9,500 cubic yards of topsoil to fully retopsoil the
<br />surface facilities at the mine. While it is true that this material nay
<br />be made up from excess topsoil at the upper waste rock site, the upper
<br />waste rockpile is not an approved permitted activity at this time.
<br />Furthermore, even if approved, it inay be years before actual replacement
<br />material is recovered from the site. Until that time, bond is needed to
<br />cover the costs of salvaging and transporting material from the upper
<br />waste rock site.
<br />b. Performance bond calculations in Section 4.8 of the application are
<br />based on the value of the earthmoving equipment to be recovered through
<br />work (purchase price minus residual value at replacement) as is
<br />explained in Section 0+0 of the Caterpillar Performance Handbook, 13th
<br />ed., 1982. This procedure is not acceptable to the Division since it
<br />assumes the State can purchase and sell the equipment needed for
<br />reclamation. Costs need to be recalculated to include rental costs that
<br />the Division would incur in the event of forfeiture. Detailed cost
<br />estimates need to be included in the application. In addition, the
<br />assumptions that were used to develop the demolition costs in Table
<br />4.8.1.8 need to be provided.
<br />c. If reevaluation of the reclamation costs snows that the bond will
<br />need to be revised, Mt. Gunnison shall submit the bond along with a
<br />current MLRD bond form. Such form shalt be filled out completely and
<br />shall not be modified by the operator.
<br />Revision Date: The timetable for revising the bond calculations is April 1,
<br />1984. Bond shall be resubmitted within 30 days after approval of the bond
<br />reclamation estimates.
<br />/mt
<br />Doc. No. 7115
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