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A review of the Division's bond file for the Seneca II Mine indicates that the <br />following corporate surety bonds are currently in effect for operations <br />conducted prior to and during the first 5-year permit term. <br />Bond No. 9264038 - $ 119,000.00 <br />Bond No. 9264039 - $ 17,736.00 <br />Bond No. 9264088 - $3,453,662.00 <br />Bond No. 9264191 - $1,355,000.00 <br />Total = 54,945,398.00 <br />At the time of issuance of the first permanent regulatory program permit, <br />total required bond coverage was set at $2,636,800.00. By virtue of various <br />revisions to the permit which were approved by the Division subsequent to <br />permit issuance, required bond coverage increased to 53,453,662.00 by the end <br />of the first permit term. During the permit renewal process, reclamation <br />costs for the worst case disturbance occurring during the second permit term <br />(1986-1991) were calculated by the applicant. The initial estimate was <br />reviewed by the Division in detail, revealing several deficiencies in the <br />supporting calculations. An outline of all deficiencies noted in the review <br />was forwarded to Peabody Coal Company on May 29, 1986. The permittee <br />responded to each of the Divisions concerns on August 29, 1986 with a revised <br />cost estimate of $5,291,433.00. The response was reviewed by the Division, <br />resulting in a final acceptable bond amount of $6,431,188.00. <br />During the permit renewal process, the Division provided Peabody Coal Company <br />with information regarding procedures for the release of performance bonds <br />covering areas which were mined and subsequently reclaimed during the first <br />permit term. As indicated in the permittee's August 29, 1986 response, <br />Peabody Coal Company has elected not to apply for bond release as part of the <br />permit renewal process. Therefore, bond coverage amounts applicable to all <br />areas mined during the first 5-year permit term will be retained by the <br />Division until such time that the permittee submits an application for bond <br />release for those areas. The amount retained is in addition to the bond <br />amount which must be retained to cover the worse case disturbance occurring <br />during the second 5-year permit term. <br />The $6,431,188.00 required bond amount for the second permit term must be <br />submitted to and accepted by the Division prior to final approval of the <br />permit renewal application. As such, the following stipulation is necessary. <br />STIPULATION N0. 6 <br />A PERFORMANCE BOND IN THE AMOUNT OF 56,431,188.00, PAYABLE TO THE STATE OF <br />COLORADO AND THE UNITED STATES OF AMERICA, MUST BE FILED WITH THE DIVISION <br />WITHIN FIVE DAYS AFTER THE DECISION BECOMES FINAL. <br />With the acceptance of the above stipulation, the operation is in compliance <br />with the requirements of this section. <br />-42- <br />