2008-01-03_REVISION - C1981038 (3)

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$501,479.00. Although the Division will hold an excess in bond, the required surety will remain at $4,624,936.00 because it has now been set through the Phased Bond Release process. While the Division can not release (reduce) the current liability, if, in the future, it is determined that the cost of the remaining reclamation at the Bowie No. l Mine exceeds the liability held, the Division can request that additional bond monies be submitted. The following paragraphs can be used in your SL-03 and RN-OS Findings documents. SL-03 Findings Paragraphs Rule 3.03.1(2)(a) states that "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading and drainage control in accordance with the approved reclamation plan." Based on the reclamation completed at the Bowie No. 1 Mine, the Division is proposing to release a total of 60% of the applicable bond or $1,136,354.00. This release is for structural demolition work completed at the Bowie No. 1 Mine Loadout. The total amount of structural demolition at the Bowie No. 1 Mine Loadout is $2,688,882.00. There is, however, still some structural demolition work that has not yet been completed at the Loadout. Based on the SL-03 application package and the Division's site inspection on (DATE), the Division has determined that the total amount of structural demolition that has been completed at the Bowie No. 1 Mine Loadout is $1,893,923.00. This amount is the applicable amount that the Division used to determine the releasable amount pursuant to Rule 3.0.3.1(2)(a). The Division also has determined that it can release a fu1160% of the applicable amount for SL-03, as discussed below. In determining the releasable bond amount for SL-03, the Division calculated an updated cost for the remaining reclamation at the Bowie No. 1 Mine (the entire site including the Loadout). The Division determined that the remaining liability is $4,123,457.00. Currently, the Division holds three corporate sureties from the Lyndon Property Insurance Company totaling $5,761,290.00 (surety L-022004-C-81-038 in the amount of $761,290, surety L-022004-C-81-038-1 in the amount of $2,500,000.00 and surety L- 022004-C-81-038-2 in the amount of $2,500,000.00). Following the final approval for the release of $1,136,354.00 for SL-03, the Division will hold bond monies totaling $4,624,936.00. The bond monies that the Division will hold will exceed the required liability (of $4,123,457.00) by $501,479.00. This will ensure that the Division holds enough bond monies in the event of permit revocation and bond forfeiture. RN-OS Findings Paragraph The Division calculated the cost of the remaining reclamation at the Bowie No. 1 Mine in conjunction with the review of the permit for RN-O5. The Division calculated the remaining liability to be $4,123,457.00 for the site. The Division currently holds bond