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9. The Division finds that surface coal mining and reclamation operations to be performed under this <br />permit will not be inconsistent with other such operations anticipated to be performed in areas <br />adjacent to the permit area (2.07.6(2)(1)). <br />l0. The Division currently holds a total bond amount of $6,450,000.00 in two instruments. The first <br />instrument is in the form of a corporate surety amounting to $1,000,000.00 that is issued by the <br />Lyndon Property Insurance Company. The second instrument is also a corporate surety in the amount <br />of $5,450,000.00, issued through the CGU Insurance Company. <br />Under Rules 2.08.5(3)(a)(iv) and 3.02.2(4), the Division is required, at the time of permit renewal, to <br />review and adjust, if necessary and for good cause shown, the reclamation cost estimate at a mine site. <br />Adjustment of the reclamation cost estimate is required if the cost of any future reclamation at the <br />mine site changes. <br />Any such adjustment must follow the procedures stated in Rule 3.02.2(4). First, the permittee must be <br />notified of the proposed reclamation cost estimate adjustment and be provided an opportunity for an <br />informal conference concerning the adjustment. Second, the bond adjustment must be announced in a <br />written proposed decision by the Division, in a publication for two consecutive weeks of the <br />Division's proposed decision and in a notification to the permittee, the surety and any owner of a <br />property interest in the collateral who has requested such notification. Third, there must be an <br />opportunity for a formal hearing concerning the bond adjustment. Any person can request a formal <br />hearing if that person has an interest which is adversely affected by the Division's proposed decision. <br />The request for the formal hearing must be in written form, stating the reason for the objection, and <br />must be received by the Division within 30 days of the initial publication of the Division's proposed <br />decision. <br />As part of the permit renewal process, a revised bond liability calculation was conducted pursuant to <br />the procedures of 3.02.2(4). The Division's bond liability estimate was based on the total reclamation <br />costs for the entire Bowie No. 1 Mine, which includes the East Mine area, the West Mine area and the <br />unit train loadout azea. The revised bond liability for Permit Renewal No. 4 is $6,879,590.OO.With the <br />approval of the partial Phase One Bond Release (SL-02), the bond liability at the Bowie No. 1 Mine <br />will be lowered by $1,143,807.00 to $5,735,783.00. BRL has posted sufficient bond with the Division <br />to cover all of the remaining reclamation costs at the Bowie No. 1 Mine. <br />11. The Division has made a negative determination for the presence of prime farmland within the permit <br />azea. The decision was based on letters from the Soil Conservation Service that demonstrate that no <br />prime farmland mapping units are found within the permit area (2.07.6(2)(k)). <br />12. Based on information provided in the application, the Division has determined that an alluvial valley <br />floor exists within the permit or adjacent area. The alluvial valley floors are known as the North Fork <br />of the Gunnison River alluvial valley floor and the Terror Creek alluvial valley floor. <br />a) Pursuant to Rule 2.06.8(5)(a)(i), the Division finds that the proposed mining operations would not <br />interrupt, discontinue, or preclude farming on alluvial valley floors (2.06.8(5)). <br />b) Pursuant to Rule 2.05.8(5)(a)(ii), the Division finds that the proposed surface coal mining <br />operations would not materially damage the quantity and quality of water in surface and ground <br />water systems that supply those alluvial valley floors or portions of alluvial valley floors. <br />c) Pursuant to Rule 4.24.2(1), the Division finds that the proposed surface coal mining operation has <br />been designed to preserve the essential hydrologic functions of alluvial valley floors. <br />20 <br />