Laserfiche WebLink
~ ~~ <br />• Colowyo proposed to submit a performance bond for the permit term incrementally in accordance <br />with [he disturbance. The proposal was subsequently accepted by the Division. Effective July 8, <br />1992, Colowyo submitted a Corporate Surety Reclamation Bond with Seaboard Surety as <br />Principal in the amount of $5,252,595. This bond, in combination with Bond No. 46520380BCA <br />provided by Aetna Casualty and Surety Company noted above, increased Colowyo's bond <br />amount to $14 millior:. This $14 million bond amount provided a contingency in the amount of <br />$365,935. Colowyo provided an additional bond amount of $4,117,250 prior to initiating mining <br />activity in the West Pit Area. <br />During Permit Mid-Term Review (Technical Revision No. 37) Colowyo revised the estimated <br />liability amount. On August 15, 1996 Colowyo submitted a Rider to American Home Assurance <br />Bond #14-95-65 to increase that bond amount to $11,252,595. This bond, in combination with <br />the Aetna bond noted above, provided a total reclamation bond amount of $20 million and a <br />remaining contingency of $432,193. <br />During 1997 Permit Renewal RN-03, Colowyo submitted TR~3 which provided for a <br />recalculation and reduction of the performance bond for the next 5-year permit term. Due to <br />mine plan changes for Section 9, Section 15, Section 16, and the reduction in East Pit and West <br />Pit drainage cuts, the recalculated bond amount is $15,670,521 which is $3,914,009 less than the <br />previous estimate of $19,584,530. Note that the revised bond calculation also includes $16,723 <br />for exploration work within the Permit Boundary (resource confirmation work, see page D-31). <br />At the time of the TR-43 submittal, Colowyo did not submit a rider to the bonds noted above to <br />reduce the $20,000,000 bond amount held by the Division. Colowyo subsequently provided the <br />• Division with a reduced performance.bond reflecting the revised calculated liability plus an <br />appropriate contingency for future liability increases. With modification of Bond #14-95-65, <br />total bond liability was the $15,670,521, noted above, and total bond liability coverage was <br />$16,000,000, resulting in a contingency amount of $329,479. <br />LJ <br />Rule 3.02 3.02-2 Revision Date 5/8/03 <br />Revision No. TR-56 <br />