Laserfiche WebLink
IV. PROPOSED DECISION <br />Based on the observations above, the Colorado Division of Reclamation, Mining, and Safety proposes <br />to partially approve Seneca Coal Company's request for full liability bond release for a portion of the <br />Pre-Law area at the Seneca II Mine. This proposed decision will release the applicant from full liability <br />on 257.71 acres of the Pre-Law area. SCC originally requested that 259.1 acres of the total 326.5 acres <br />of Pre-Law disturbance be released. Specifically excluded from the bond release request is 1.39 acres <br />for the lower end of the PL-1 Channel and a small Dozer Track that was used to access the upper Wolf <br />Creek Pit area. As previously discussed, SCC did not include the 67.4 acres of Pre-Law area associated <br />with the old Wolf Creek Pit in this bond release application. SCC's exclusion of the 67.4 acres is due to <br />the DRMS's Findings of Compliance for Phase I Bond Release SL-O1 dated December 27, 2006, in <br />which the DRMS required SCC to implement additional corrective actions in order to secure future <br />bond release for the old Wolf Creek Pit area. As described below, reclamation work is ongoing at the <br />old Wolf Creek Pit. The 1.39 acres specifically excluded from this SL-02 bond release request will <br />be added to the 67.4 acres to give a total of 68.79 acres of Pre-Law area remaining at the Seneca II for <br />which future bond release will need to be requested by SCC. <br />The DBMS currently holds a performance bond of $7,183,489.00 which is equal to the required surety <br />for the site prior to this release decision for the Seneca II Mine. Subsequent to the reclamation liability <br />last being estimated, DRMS and Seneca determined that the Pre-Law and Permanent Program areas of <br />the permitted site should be separated. DBMS thus determined that $1,355,000.00 in bond applied to <br />pre-law permit 75-54 (based on permit approval documents for Permit No. 75-54). This $1,355,000.00 <br />designated for the Pre-Law disturbance proportioned over the entire 326.5 acres of Pre-law disturbance <br />is $4,150.08/acre. Using the $4,150.08 per acre value, $285,484.00 would apply to the Pre-Law areas <br />not eligible for bond release. The estimated reclamation cost for the Permanent Program areas is <br />$6,026,360.00 for a total combined liability of $6,311,844.00. Accordingly, the DRMS proposes to <br />release $871,645.00 of the currently held bond monies in order to ensure that the surety held is adequate <br />to cover the estimated reclamation costs. The remaining $285,484.00 of the Pre-Law bond monies held <br />is sufficient to assure completion of the remaining reclamation work at the Old Wolf Creek Pit area if <br />the work had to be performed by the Division, as is the $6,026,360.00 retained for Permanent Program <br />areas. The newly revised reclamation liability for the separated Pre-Law and Permanent Program areas <br />now totals $6,311,844.00. <br />The DBMS approved Minor Revision No. 57 on September 27, 2007 which incorporated the Wolf <br />Creek Remediation Plan into the permit document (Attachment 13-16). The plan calls for <br />constructing a postmine channel to control discharge from the existing pond, regrading the north and <br />south slide crests, incorporating limestome amendment to the area, and seeding all disturbed areas. <br />An inspection of the Old Wolf Creek Pit was last done in July 2007 (see inspection report dated <br />07/24/07). At that time SCC had been working on the upper Wolf Creek area and had improved a <br />road into the old Wolf Creek Pit for equipment access and had begun regrading work. Since then <br />good progress has been made. PL-1 Channel has been built, and the north and south slide crests have <br />been regraded. The overall plan which has yet to be completed calls for incorporating limestone <br />amendment to approximately 31 acres to promote vegetative growth and reseeding the entire <br />disturbance area. <br />12 <br />