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L PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />Colorado Yampa Coal Company (CYCC) has applied for final (Phase [I and [[I) bond release <br />under the Colorado Surface Coal Mining and Reclamation Act following reclamation of Energy <br />Mine No. 3. The mine is located in Routt County, approximately 20 miles southwest of <br />Steamboat Springs. The mine area is located in portions of Sections 1, 2, 12, 13, and 24, <br />Township 5 North. Range 86 West, and portions of Sections 18 and 19, Township 5 North. <br />Range 8~ West, of the 6th P.M. <br />Energy Mine No. 3 is permitted under the Division of Minerals and Geology permit no. C-84- <br />062. Colorado Yampa Coal Company is the petmittee and the operator. Mining was completed <br />at Energy Mine No. 3 in 1986. A partial Phase I Bond Release for the backfilling and grading of <br />Energy Mine No. 3 was approved on July 13, 1987. The partial Phase I approval reduced the <br />bond amount for Energy Mine No. 3 from $3,732,700.00 to $1,493,080.00. Areas of Energy <br />Mine No. 3 specifically exempted from the July 1987 bond release were ponds M3-N and M3-S, <br />the Middle Creek office area, and topsoil pile T-1. Upon receipt of adequate certifications for <br />ponds M3-N and M3-S, the two ponds were approved to remain as permanent structures on <br />Mazch 7, 1988. Bond Reduction, in accordance with Rule 3.02.2(5), was approved for the [wo <br />ponds on Mazch 7, 1988, because reclamation of the two ponds was no longer required. The <br />Bond Reduction regarding the two ponds consisted of a reduction in reclamation liability. No <br />additional money was released. <br />Pursuant to Rule 3.02.2(4)(d), Colorado Yampa Coal Company submitted a request for a bond <br />adjustment on February 4, 1988. The Division approved a reduction in the required liability <br />bond amount from $1,493,000.00 to $16,000.00 on August 9, 1988. The bond reduction <br />decision became final on October 1, 1988. During the Division's Midterm review in 1995. <br />review of the reclamation liability bond found that remaining liability costs for Energy Mine No. <br />3 were estimated at $179,307.00. On January 4, 1993, Colorado Yampa Coal Company <br />submitted a bond in the amount of $200,000.00 drawn on Aetna Casualty and Surety Co. <br />Colorado Yampa Coal Company revised the mine plan for the Energy Mine No. 3 to allow for <br />the Middle Creek shop area to remain in support of the post-mining land use of pastureland <br />(Technical Revision No. 8). This revision was approved on July 18, 1997. Approval of <br />Technical Revision No. 8 reduced CYCC's required Bond Liability to $70,322.00 (Rule <br />3.02.2(5)), because reclamation of the Middle Creek Shop was no longer required. Colorado <br />Yampa Coal Company did not submit a rider to the bond reducing the actual bond; consequently, <br />the Division continued to hold a bond in the amount of $200,000.00. <br />An application for Phase II and III bond release (SL-02) for the Energy Mine No. 3 area was <br />received by the Division on November 14, 1997. The application was found complete on <br />November 24, 1997. Colorado Yampa Coal Company published notice of the bond release <br />application in the Steamboat Pilot once weekly for four consecutive weeks, beginning <br />Colorado Yampa Coal Company: htinz No. 3. SL02 Findin_s 6/99 a:\C034062\SL02 fnd doc <br />