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;:
<br />The Division currently holds Irrevocable Letter of Credit No. 5041639, issued in amended
<br />form to the Division on October 19, 1992 by Norwest Bank of Denver, in the amount of
<br />$235,132.00. In conjtmction with the four decisions proposed herein, the Division proposes
<br />to release $123,164.00, and proposes to retain $111,968.00. A history and justification for
<br />the amount of performance bond proposed for retention and release is found below:
<br />(1) The amount of performance bond established for this operation under Colorado's
<br />interim program was set at $921,000.00 (October 29, 1981 Proposed Decision
<br />Document);
<br />(2) When the Canadian Mine permit was renewed under Permit Renewal RN-01, the
<br />Division calculated the cost to reclaim the disturbance that existed at that time. This
<br />figure was $746,450.00. The $921,000.00 performance bond held by the State at
<br />that time satisfied the reclamation liability, and the permit was renewed (Marsh 30,
<br />1987 Proposed Decision Document).
<br />(3) On March 31, 1987, a bond reduction request was submitted to the Division by the
<br />permittee for the Canadian Mine, requesting a return of reclamation monies posted
<br />for areas approved for disturbance but not as yet disturbed. The Division conducted
<br />a site inspection on April 23, 1987, and on July 16, 1987 granted a reduction in the
<br />amount of bond required for the mine site from $921,000.00 to $746,450.00.
<br />(4) On November 19, 1987, a Phase I Bond Release request was submitted to the
<br />Division by the permittee for the Canadian Mine. This request addressed the back-
<br />filling and grading at the mine site. The Division granted Phase I approval on
<br />December 22, 1988, and reduced the amount of bond from $746,450.t)D to
<br />$298,580.00. This was equal to a 60% reduction of the $746,450.00 figure.
<br />Although Ponds 1, 2 and 3 were not as yet regraded, the Division returned their
<br />backfilling and grading costs as part of the 60% bond release.
<br />(5) On March 1, 1990, a Phase II Bond Release request was submitted for the Canadian
<br />Mine. This release applied to Areas I, II, III and IV, and to Ponds 1 and 2. In
<br />April 1991, the Division approved Ponds 1 and 2 as permanent structures through
<br />Technical Revision TR-06, and also approved Pond 3's removal through Minor
<br />Revision MR-04. Pond 3 was reclaimed immediately thereafter. (Aside from
<br />Ponds 1, 2 and 3, no other ponds currently exist at the Canadian mine site.)
<br />(6) On November 13, 1991, a partial Phase II Bond Release was granted by the
<br />Division for the Mazch 1, 1990 release request. This 1990/1991 partial Phase II
<br />release decision approved Phase II release for Areas I, II and II, and for Ponds 1
<br />and 2, but denied Phase II release for Area IV. (Pond 3 was not included in the
<br />request at the time of its submittal, as the pond was reclaimed only six months prior
<br />to the fora] November 1991 decision. A Phase I decision for Pond 3 was not
<br />documented in the Division's 1991 partial Phase II decision, nor was any decision
<br />documented in that action that had been previously made pertaining to the release of
<br />Phase I liability for Ponds 1 and 2.)
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