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18 <br />Review of data provided by Colorado Yampa Coal Company indicates that water quantity has <br />not been diminished as a result of mining. Data show that surface water runoff from the <br />reclaimed areas likely increases the flow to the surface water system below the mine. More <br />dramatic seasonal variations and flow fluctuations can occur from year to year based on the <br />amount of snowpack each year. Water quality data indicate discharge of spoil spring water <br />through the sediment ponds at Energy Mine No. 3 increases the salinity slightly to Middle Creek. <br />These discharges are relatively small and do not significantly alter the quality or restrict <br />anticipated potential uses of Middle Creek waters. <br />The Division finds that Colorado Yampa Coal Company has successfitlly completed all surface <br />coal mining reclamation operations in accordance with the approved reclamation plan and met all <br />requirements of the Act and the Rules, for Energy Mine No. 3, permit C-84-062. <br />V. -PROPOSED DECISION <br />Based on the observations above, the Division proposes to approve Colorado Yampa Coal <br />Company's request for a Phase II and III bond release for Energy Mine No. 3. This proposed <br />decision would release the applicant from liability for all reclamation work on the permit area. <br />This proposed decision applies to the 368.4 acres of reclaimed land and the remaining <br />undisturbed land within the permit boundary area. Final bond release will also apply to all land <br />(1397.4 acres) within the Energy Mine No. 3 permit boundary. <br />The original performance bond for Energy Mine No. 3 was $3,732,700. The Division released <br />$2,239,620.00 in reclamation liability in 1987 for successful backfilling and grading of 368.4 <br />acres, leaving $1,493,080.00 in liability. The Division additionally approved a bond reduction <br />from $1,493,080.00 to $156,000.00 in 1988. In 1995, the reclamation liability was increased to <br />$179,037.00, and the operator posted a $200,000.00 bond at that time. In 1997, the Division <br />approved another bond reduction, reducing the reclamation liability from $179,037.00 to <br />$70,322.00. <br />Pursuant to Rule 3.03.2(5), based on the observations above, the Division proposes to release the <br />remaining $70,322.00 in reclamation liability, and return the $200,000.00 reclamation bond. <br />Any person with a valid legal interest which might be adversely affected by this proposed <br />decision may request a formal public hearing before the Mined Land Reclamation Board in <br />accordance with Rule 3.03.2(6). Public notice of this proposed decision will be published twice <br />in the Steamboat Pilot as soon as possible. Requests for public heazing must be submitted to the <br />Division in writing within thirty days of the first publication in the Steamboat Pilot. If no <br />hearing is requested within that thirty days, the Division's decision will become final at the end <br />of that thirty-day period, and termination of the State jurisdiction will occur in accordance with <br />Rule 3.03.3. <br />Colorado Yampa Coal Company Minc No. 3. SLO? Findines 6/99 a:\COSa06?\SL02fnd.doc <br />