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As required by Rule 3.03.2(5)(a), this document constitutes written notification of the Division's decision to deny the Phase II/III Bond Release request for Block A (SL-O1) for Mine 1, Mine 2, and Eckman Park, Permit ~ C-81-071, submitted by Colorado Yampa Coal Company (CYCC). The reasons for this denial are as outlined below: Rule 3.03.1(2)(c) allows for any remaining portion of bond to be released when the "permittee has successfully completed all surface coal mining reclamation operations in accordance with the approved plan and the final inspection and procedures of 3.03.2 have been satisfied. This shall not be before the expiration of the period specified for revegetation responsibility in 3.02.3" Rule 3.02.3 defines the period of responsibility as ten years and until the permittee has met the revegetation requirements of Rule 4.15. Text discussion submitted in conjunction with the Block A bond release application reveals that vegetation sampling transects were randomly located using the proportional allocation method to determine vegetative cover and production and thereby demonstrate compliance with Rule 4.15.7(2)(c). However, inspection of the data reveals that, in many cases, more than a proportional amount of transects were located in reclamation parcels of comparably better cover and/or production and less than. the required number of transects were distributed among the reclamation parcels which were not as favorable in cover and production as the reference area. In order for a sample to be representative of a population it must follow the principle of randomness.(Steele and Torrie, p. 9) Deviation from the proportional allocation method for Block A thus has added a degree of non-randomness to these data. Therefore, CYCC has failed to provide data which demonstrates compliance with Rule 4.15.7(2)(c) for Block A. Rule 3.03.1(3)(b) allows more than 60$ of the bond to be released only after such time the permittee demonstrates that the acreage included in the bond release does not contribute excess suspended solids to streamflow or runoff outside the permit area when compared to baseline conditions or to an adjacent, non-mined area. As discussed in a meeting on March 1, 1994, this demonstration was not made on 82 acres of the 92 acre parcel and on the entire 8.5 acre parcel. Prior to Phase II bond release this demonstration must be made by CYCC on all areas included in the bond release application. During the field inspection, Pond M was identified in an adjacent parcel. A diversion ditch draining to Pond M was located in the 97.3 acre parcel included in the Block A acreage. Pond M and this diversion ditch are currently not approved as permanent. As