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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS KCC applied for a Phase I Bond Release under the Colorado Surface Coal Mining Reclamation Act following reclamation of the Man Mine -Man Pit azea. The requested Phase I Bond Release azea covers 96.5 acres and was reclaimed between 1979 and 1983, with most of the reclamation being completed prior to 1982. The azea was seeded in 1983; however, neither a Phase I, Phase II or a Phase III Bond Release had been applied for at any time. Some of the azea that was mined and reclaimed in the Man Pit azea was completed during the interim regulatory period between promulgation of the Surface Mining Control and Reclamation Act (SMCRA, 3 August 1977) and the final approval of the corresponding Colorado Regulatory Program (15 December 1980). However, with the approval of the existing permit, all lands must be reclaimed to the current, approved standazds. The lands requested for release aze in Jackson County with the following legal description: Township 8N, Range 78W, 6`h Principal Meridian -Section 2 Township 9N, Range 78W, 6`h Principal Meridian -Sections 22, 23, 25, 26, 27 and 35 These azeas are shown on the Johnny Moore Mountain, Gould NW and Eagle Hi117.5- minute USGS Quadrangle Maps. The Division received an application from Montgomery Watson Harza (consultant) for the Phase I Bond Release on 17 May 2001. The application was deemed complete on 13 August 2001, after the Division received proof of publication of KCC's legal notice and proof of landowner notification. The notice was published in the Jackson County Star for four consecutive weeks from 7 June 2001 to 28 June 2001. KCC also notified various governmental agencies and landowners within and adjacent to the bond release areas as required by Rule 3.03.2(1). No written objections or requests for an informal conference regazding the bond release application were received by the Division. The Division scheduled and conducted a bond release inspection on 12 September 2001. The site inspection was conducted in accordance with Rule 3.03.2(2). KCC representatives, the Office of Surface Mining (OSM) and surface and adjoining landowners including the United States Bureau of Land Management (BLM), Colorado Board of Land Commissioners and the United States Fish and Wildlife Service were notified of the inspection. Representatives from KCC, the OSM, Montgomery Watson Harza and the Division were present at the inspection. IL CRITERIA AND SCHEDULE FOR BOND RELEASE Rule 3.03.1(2)(a) states that "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading and drainage Marr Mine SL-03 2 28 January, 2002