2006-11-08_GENERAL DOCUMENTS - C1981012

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Minor Revisions since Renewal No. 4 (May 2004) Revision Number Descri tion Date A roved MR-86 On-site Debris Dis osal Nov 2005 Bond Releases since Renewal No. 4 Ma 2004 Bond Release Description Date Approved Post-approval liability SL-02 Phase I Bond Pending Pending Release Section III Status of Stipulations There are no active stipulations for the New Elk mine permit at this time. All stipulations have been previously resolved. Section IV Enforcement Actions This section is a review of the enforcement actions issued since the last permit renewal (RN-04) in May 2004. The mine received one violation in August 2006 and a related cessation order in October 2006. NOV CV-2006-003 This violation was issued for failure to submit additional bond as required by Surety Increase No. 1 (SI-01). The Division reviewed and recalculated the reclamation cost estimate and determined the required amount of bond to be held by the Division to be $3,579,533.00. As required, the Division notified Picketwire Processing, LLC. in a letter dated March 31, 2005, that the current corporate surety from Lyndon Property and Insurance in the amount of $2,114,649.00 held by the Division was insufficient and additional bond was required. The letter also advised the permittee of their right to an informal conference. An informal conference was requested and held on May 19, 2005. The permittee's representative discussed permitting options that would be submitted to the Division for review and approval to allow a reduction in the reclamation cost estimate based on on-site material disposal and permitting of permanent structures at the site. A second letter advising Picketwire Processing, LLC of the surety increase was sent on December 20, 2005. The decision to adjust the reclamation bond amount was published and subsequently became final on January 28, 2006. Since that time, 7-