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_~ <br />BRL Bowie No. 1 Mine Bond Release SL-3, pg. 2 <br />The approved surface water runoff control system for the train loadout was functioning. as designed <br />during the bond release inspection. <br />DRMS determined as a result of the inspections to include 1,500 feet of the railroad spur track that had <br />been removed and shipped off site. BRL formally requested that demolition costs associated with the <br />1,500 feet of track be included with this SL-3 bond release request. Structures and/or facilities remaining <br />at the train loadout include the following: entrance gates and fence, paved haul road sections and the <br />scale house, the concrete pad in front of the demolished silos, the shop and fuel facility including two <br />500 gallon tanks, the substation and fence south of the silo area, and the loadout pump house. <br />This partial Phase I bond release request is for $1,136,354.00 (This amount represents 60% of the <br />applicable loadout reclamation costs of $1,893,923.00.) of the $5,761,290.00 total bond amount for the <br />Bowie No. 1 ~1Vline and train loadout facility.-The DRMSJstructural demolition and"Partial-Phase 1 bond <br />release estimate was accepted by BRL in a February 11, 2008, acknowledgement letter to DRMS. <br />OSM finds the DRMS Partial Phase I bond release amount proposed to be released for structural <br />demolition completed, and surface water runoff control on the areas proposed for release are in <br />accordance with the above regulatory requirements and the approved DRMS mining permit. <br />Total costs for all remaining reclamation liability at the Bowie No. 1 Mine and loadout facility are <br />$ 4,123,457.00. Upon approval of this Phase I bond release, DRMS continues to hold total bond in the <br />amount of $ 4,624,936.00. The total bond amount remaining after this release is sufficient to cover the <br />remaining reclamation liability for all areas in the event of bond forfeiture, and the need for a third party <br />to complete the reclamation plan and environmental monitoring required in the approved mining <br />permit.. OSM concurs with the DRMS amount proposed for release as noted above. <br />Thank you and your staff for coordinating this Federal lands bond release through the DFD. Please <br />direct any questions concerning this action to Henry Austin, Senior Reclamation Specialist, at <br />haustin@osmre. gov or (303) 293-5019. <br />Sincerely, <br />~ ~ZL.~- <br />~ ) ~(,~ <br />mes. F. Fulton, Chief <br />Denver Field Division <br />Enclosure <br />Cc: David Berry, DRMS <br />BRL <br />BLM / Montrose, CO <br />