Laserfiche WebLink
IV. PROPOSED DECISION <br />Based on the observations above, the Colorado Division of Reclamation, Mining, and Safety proposes <br />to partially approve Seneca Coal Company's request for a Phase I bond release for the Seneca II Mine. <br />This proposed decision will release the applicant from liability for backfilling, grading, and drainage <br />reestablishment on 2,054.5 acres of the site. SCC originally requested that 2,247.7 acres be released. <br />Specifically excluded from the Phase I bond release request is 125.8 acres in the East Wadge Pit area for <br />drainage channel reconstruction at PM-8, PM-8a and PM-8b and 67.4 acres at the old Wolf Creek Pit <br />for grading work to establish positive drainage from the Wolf Creek Pond and stabilize erosion in the <br />former pit. <br />PHASE I <br />The DRMS holds a performance bond of $11,673,859.00 for the Seneca II Mine. Of this amount <br />$1,355,000.00 applies to pre-law permit 75-54, and the remainder $10,318,859.00 applies to the <br />permanent program. The required surety for the site prior to this release decision is $10,839,506.00. <br />The Division proposes to release $3,679,464.00. The proposed amount to be released is less than the <br />sixty percent of the current required surety which would be eligible for release under Rule 3.03.1(2) (a). <br />The release amount is less than the eligible amount because SCC has not requested release on all <br />disturbance areas, and because the Division has proposed to exclude some azeas requested for release <br />(portions of the Wadge and old Wotf Creek areas) since they do not meet bond release standards. The <br />remaining $7,160,042.00 is sufficient to assure completion of the remaining reclamation work at the site <br />if the work had to be performed by the Division, including the cost of topsoil redistribution and <br />reestablishing vegetation on any revegetated areas, should those azeas fail. <br />Reclamation work which remains to be done at the site includes grading to establish positive drainage in <br />the old Wolf Creek Pit; reestablishing drainages PM-8, PM-8a, and PM-8b; regrading the remaining <br />Lower Wadge Road (not applicable to this release request per SCC); sealing groundwater monitoring <br />wells; backfilling the truck wash ponds and facilities area ditches; backfilling and regrading the landfill <br />azea; demolition of facilities and clearing of debris; regrading of facilities area lands; and site <br />maintenance during the liability period. In addition to the remaining work, the DRMS is maintaining <br />bond for topsoil redistribution and revegetation of the entire site. The DRMS will hold bond money for <br />topsoil redistribution and revegetation until a Phase II bond release is granted. A summary of Seneca II <br />Phase I release amounts is provided in the attached table. The revised reclamation cost estimate is also <br />attached. <br />Any person with a valid legal interest which might be adversely affected by this proposed decision may <br />request a formal public hearing before the Mined Land Reclamation Board in accordance with Rule <br />3.03.2(6). Public notice of this proposed decision will be published twice in the Steamboat Pilot as <br />soon as possible. Requests for public hearing must be submitted to the Division in writing within thirty <br />days of the first publication in the Steamboat Pilot. If no hearing is requested within that thirty days, the <br />Division's decision will become final. <br />17 <br />