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6. For this surface mining operation private mineral estate has been severed <br />from private surface estate, but the documentation specified by Rule <br />2.03.6(2) has only been partially provided. Grand Mesa Coal Company has <br />dropped several private leases in anticipation of their 1988 reclamation <br />of the site. Prior to initiation of mining operations a permit revision <br />would be requested and the operator would submit legal documentation <br />verifying compliance with 2.03.6(2). <br />7. On the basis of evidence submitted by the applicant and received from <br />other state and federal agencies as a result of the Section 34-33-114(3) <br />compliance review required by the Colorado Surface Coal Mining <br />Reclamation Act, the Division finds that Grand Mesa Coal Co. does not own <br />or control any operations which are currently in violation of any law, <br />rule, or regulation of the United States, or any State law, rule, or <br />regulation, or any provision of the Surface Mining Control and <br />Reclamation Act or the Colorado Surface Coal Mining Reclamation Act. <br />(2.07.6(2)(9)(1))• <br />Western Associated Energy Corporation is a managing partner for Grand <br />Mesa Coal Company as well as several other Colorado coal mining <br />operations. Blue Ribbon Coal Company, a similarly managed company, was <br />issued N.O.V. C-88-023 on May 4, 1988, for failure to maintain cover <br />material in a stable configuration at the Blue Ribbon Mine (4.09.1(7). <br />The abatement date for this violation is August 3, 1988. The operator is <br />preceding in a procedurally acceptable manner to correct this violation <br />(2.07.6(2)(g)(ii). The Snowmass Coal Company is also managed by Western <br />Associated Energy Corporation and was issued N.O.V. C-81-025 on May 6, <br />1988 for the failure of the portal seal to keep potentially toxic mine <br />discharge from entering surface water (4.07.3 and 4.05.10(1)). This <br />violation was terminated June 13, 1988, a penalty of $250 was assessed <br />and the operator is intending to pay the penalty within the established <br />timeframes. <br />8. Grand Mesa Coal Company does not control and has not controlled mining <br />operations with a demonstrated pattern of willful violations of the Act <br />of such nature, duration, and with such resulting irreparable damage to <br />the environment as to indicate an intent not to comply with the <br />provisions of the Act. (2.07.6(2)(h)). <br />9. The Division finds that surface coal mining and reclamation operations to <br />be performed under this permit will not be inconsistent with other such <br />operations anticipated to be performed in areas adjacent to the permit <br />area. (2.07.6(2)(1)). <br />10. The Division has examined the existing bond in the form of a corporate <br />surety and a letter of credit, in the amount $95,000.00 each for a total <br />bond of $190,000,000.00. These bonds have received final approval. <br />The above bond amount reflects the Division's projection of reclamation <br />costs for worst-case disturbance which will occur during the proposed <br />permit term. It also reflects a 100% bond release from reclamation work <br />completed by the operator at the Delta load-out. This release was <br />approved by the Division during the previous permit term. (2.07.6.(2)(j)). <br />-14- <br />