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Lands included in the Bond Release Request <br />A total of 35 acres was disturbed at the La Plata Mine. The permit area covers 193 acres. <br />RMBT is requesting Phase III (final) bond release for all 193 acres of the permit area (the <br />bond release azea). <br />Dollar Amount of Bond Release Request <br />RMBT is requesting release of all the remaining $8,730 of reclamation liability the Division <br />has established for the La Plata Mine. The Division is secured in the amount of $8,730 from <br />an irrevocable letter of credit issued by a predecessor of RMBT, First National Bank of <br />Florence. <br />II. SUMMARY OF THE BOND RELEASE PROCESS <br />Reclamation History of Bond Release Area <br />Mining operations <br />The La Plata No. 1 Mine was aroom-and-pillaz, underground coal mine. Coal in the <br />underground workings was brought to a surface portal area by conveyor and then was taken <br />by conveyor downhill to a crushing and sorting area next to County Road 120 where it was <br />hauled away by truck. The land and coal in the bond release area is privately owned. The <br />mine disturbed 35 acres of surface azea, consisting of: a portal bench azea, a conveyor <br />corridor, acrushing/sorting azea, an office area, an access road, and a sediment pond. With <br />the exception of the pond, all surface disturbance had been previously disturbed during <br />mining activities conducted as eazly as 1905. <br />In November 1987 the Division issued permit C-87-072 to La Plata Coal Corporation for <br />mining at the site. The reclamation bond was an irrevocable letter of credit issued November <br />18, 1987 by First National Bank of Florence, RMBT's predecessor, in the amount of <br />$58,200. Mining continued for only a few more months after permit issuance. Numerous <br />violations and show cause orders resulted in the Division revoking the coal company's <br />mining and reclamation permit on May 1, 1989, and ordering the bank to automatically <br />forfeit the reclamation bond on July 1, 1989. The bank requested an opportunity to perform <br />the reclamation work in lieu of forfeiting the bond in accordance with Rule 3.04.2(5). On <br />February 22, 1990, the bank entered into a Letter of Agreement with the Division giving the <br />bank the opportunity to reclaim the site in-lieu ofproviding the Division with the proceeds of <br />the letter of credit, and the Division suspended bond forfeiture proceedings. <br />2 <br />