Division. On March 15, 1990, additional concerns relating to the initial
<br />adequacy concerns which had not been adequately addressed were sent to Rimrock
<br />Coal Company. Additional information addressing the concerns was received
<br />from Rimrock Coal Company on April 4, 1990. Another letter requesting
<br />additional information was sent to Rimrock Coal Company on April 13, 1990.
<br />Final responses were received by the Division on July 5, 1990. Based on
<br />satisfactory resolution of concerns identified during the adequacy review, the
<br />Division prepared the Findings of Compliance and proposed to approve the
<br />permit application with stipulations.
<br />On December 12, 1990, the permit was issued but was not effective since the
<br />reclamation bond of $53,000.00 had not been supplied to the Division.
<br />With the passing of the original sole proprietor, Mr. William T. Davis,
<br />ownership was transferred to Mrs. Lucy Gloria Davis, Mr. Davis' widow and sole
<br />heir. On March 27, 1992 and April 21, 1992, the Division received information
<br />confirming this transfer. On July 9, 1992, the Division received notification
<br />that Rimrock Coal Company was anticipating the startup of mining operations at
<br />the Rimrock Strip Mine and that the mining and reclamation operations had been
<br />contracted out to Randall and Blake, Inc. (Landmark Reclamation, Inc.).
<br />On July 13, 1992, the reclamation bond was recalculated at $62,000.00. On
<br />October 28, 1992, Rimrock Coal Company delivered to the Division the Letter of
<br />Credit for $62,000.00. The Division approved the Letter of Credit on
<br />November 6, 1992, thereby making the permit effective so that coal mining
<br />operations could begin.
<br />On November 10, 1992, the Division received notification that the Santa Fe
<br />Loadout, operated by Energy Fuels Mining Company, would be leased to Landmark
<br />Reclamation, Inc. for the loading of coal from the Rimrock Strip Mine. The
<br />actual lease agreement was received by the Division on December 18, 1992.
<br />Coal mining operations began in the last half of November. The expectation at
<br />the time was that 100,000 tons of coal would be mined from the west side
<br />during phase one of the operation. A series of five pits, each 40 feet wide
<br />and 800 feet to 900 feet long, would be developed, with reclamation of the
<br />pits occurring contemporaneously. Approximately 6,000 tons of coal would be
<br />produced per month, with coal quality at around 12,000 BTU. Phase two
<br />operations on the east side were to yield 50,000 tons of coal.
<br />However, coal quality sharply declined as the first pit advanced to the
<br />north. In addition, a hard sandstone bed, 4 feet thick, capped the coal,
<br />increasing overburden removal costs. After only filling several coal cars
<br />with coal, the operations were halted. Notification of temporary cessation
<br />status was received at the Division on February 11, 1993.
<br />Rimrock Coal Company received one Notice of Violation at the Rimrock Strip
<br />Mine. Based on the January 13, 1993 inspection of the mine site, NOV C-93-005
<br />was issued on January 28, 1993 for failure to construct the sediment pond
<br />embankment per regulations. At the time of this midterm review, the NOV is
<br />still under review.
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