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PROPOSED DECISION In accordance with Sec. 34-33-114(1) of the Colorado Surface Coal Mining Reclamation Act, the Colorado Mined Land Reclamation Division proposes to approve with three (3) stipulations, the permit revision and renewal applications for Salt Creek Mining Company's McClave Canyon Mine. The revision proposes an increase in permitted acreage, an expanded mine plan, and a five year permit term as opposed to previous three year terms. This decision is based upon the finding that the operations being conducted will comply with all requirements of the Colorado Surface Coal Mining and Reclamation Act, C.R.S. 1973, as amended, 34-33-101 et seq., and the regulations promulgated pursuant to the Act. Upon approval, the permit revision and renewal applications and this document will become binding parts of the permit. The following stipulations are imposed on the Division's approval: Stipulation No. 19 PRIOR TO CONDUCTING ANY MINING ACTIVITIES IN SECTION 15, 16, 21, 22 AND 27 WHICH MIGHT RESULT IN SUBSIDENCE, SALT CREEK MINING COMPANY SHALL PROVIDE THE DIVISION WITH THE CULTURAL AND HISTORIC RESOURCE INFORMATION REQUIRED BY RULE 2.04.4, AND RECEIVE DIVISION APPROVAL TO UNDERMINE THOSE AREAS. Stipulation No. 20 PRIOR TO MINING BEYOND THE PREVIOUSLY APPROVED PERMIT BOUNDARY, SALT CREEK MINING COMPANY SHALL OBTAIN AN APPROVAL OF ITS RESOURCE RECOVERY AND PROTECTION PLAN FROM THE UNITED STATES BUREAU OF LAND MANAGEMENT. EVIDENCE OF BLM APPROVAL SHALL BE SUBMITTED TO THE DIVISION WHEN AVAILABLE. The following stipulation, attached to the previous permit, remains in effect: Stipulation No. 1 IF, DURING THE COURSE OF OPERATIONS, PREVIOUSLY UNIDENTIFIED CULTURAL RESOURCES ARE DISCOVERED, THE APPLICANT SHALL INSURE THAT THE SITE IS NOT DISTURBED AND SHALL NOTIFY THE REGULATORY AUTHORITY. THE APPLICANT SHALL INSURE THAT THE RESOURCE(S) IS/ARE PROPERLY EVALUATED IN TERMS OF THE NATIONAL REGISTER OF HISTORIC PLACES ELIGIBILITY CRITERIA (36 C.F.R. 60.6). SHOULD A RESOURCE BE DETERMINED ELIGIBLE FOR LISTING IN CONSULTATION WITH THE REGULATORY AUTHORITY AND THE STATE HISTORICAL PRESERVATION OFFICE (SHPO), THE APPLICANT SHALL CONFER WITH AND OBTAIN THE APPROVAL OF THE REGULATORY AUTHORITY AND THE SHPO CONCERNING THE DEVELOPMENT AND IMPLEMENTATION OF MITIGATION MEASURES AS APPROPRIATE. IF PREVIOUSLY UNPLANNED SURFACE DISTURBING ACTIVITIES ARE NECESSARY, THE APPLICANT SHALL SUBMIT A JUSTIFICATION AND MAPS SHOWING THE PROPOSED DISTURBANCE TO THE REGULATORY AUTHORITY FOR APPROVAL PRIOR TO THE COMMENCEMENT OF THESE ACTIVITIES. There are no other stipulations imposed on the permit at this time. -2-