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DEPARTMENT OF NATURAL RESOURCES <br /> . FY 98-99 <br /> SEVERANCE TAX BUDGET REQUEST <br /> Statutory Purpose: Funding Programs that Promote and Encourage Sound Natural <br /> Resource Planning, Management and Development Related to Minerals, Energy, <br /> Geology and Water. <br /> DIVISION OF: Minerals and Geology, Coal Regulatory Program <br /> PROGRAM/PROJECT: Coal Mine Environmental Remediation Fund (CERF). <br /> PROJECT STATUTORY AUTHORITY: 34-33-125.5, to be created <br /> FUNDING -FTE TREND <br /> ACTUAL ESTIMATE REQUEST <br /> FUNDING FTE FUNDING FTE FUNDING FTE <br /> 0 0. 0 0 $190,000 0 <br /> NARRATIVE <br /> Program/Project Description: Since 1980, when the Colorado coal regulatory program <br /> was created by the General Assembly, 16 coal mine sites have been subject to permit <br /> revocation and bond forfeiture. Fifteen of these sites have been reclaimed through the use <br /> of private contractors. DMG staff served as project managers and all reclamation work <br /> was paid for from bond forfeiture proceeds. One site is currently in the process of being <br /> reclaimed. Additional reclamation work or site maintenance work is needed at several of <br /> these sites but very little or no bond forfeiture proceeds remain. Therefore, in order to <br /> complete the reclamation or maintain environmental protective measures at these sites, an <br /> additional source of funding must be found and statutory authority to expend these <br /> additional funds must be granted. . <br /> Background: During the permit review and approval process undertaken by the DMG, <br /> a detailed estimate of the cost of conducting reclamation is made. This estimate is used <br /> as the basis for the amount of the reclamation bond requested from an operator upon <br /> issuance of a permit. What we have learned from experience during the past several years <br /> is that estimates which were conducted in the very early years of the coal program, early <br /> 1980's, were not conservative enough concerning costs, did not anticipate events which <br /> J <br />