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Page 2 of 4 <br />denied a permit if the operator provided such bond and undertook such new reclamation program as <br />might reasonably be required in relation to the existing operation pursuant to the provisions of the <br />new law. <br />o operators were to obtain a "development and extraction permit" for each operation. <br />• On September 30, 1977, CF&I Steel Corporation filed an application with the Mined Land Reclamation <br />Division for a permit for the Maxwell mine in accordance with the 1976 Act and the accompanying rules <br />that were promulgated on April 19, 1977. The MLRB subsequently conditionally issued Development and <br />Extraction Mining Permit Number 77-374 for the Maxwell Mine to CF&I Steel Corporation on January 25, <br />1978. The second of this permit's two conditions states, "CF&I Steel Corporation agrees to be bound by all <br />rules and regulations of the Mined Land Reclamation Board, and by all provisions of the 1976 Mined Land <br />Reclamation Act, in compliance with each and every provision thereof, as an express condition of this <br />permit." <br />• The 1976 law and the accompanying 1977 rules included "prospecting sites" and "drill sites or workings" in <br />the definition of "affected land". "Prospecting" was further defined to include the act of "drilling core and <br />bore holes and digging pits or cuts and other works for the purpose of extracting samples prior to <br />commencement of development or extraction operations.... Based on these definitions and the <br />application materials submitted by CF&I Steel Corporation in the 1976 "B" Mine application, I believe <br />borehole LA-218 meets the definition of "affected land" under the 1976 law. <br />The 1977 rules accompanying the 1976 law required that all affected land be reclaimed (Rule 6). Rule <br />6.1.e of the 1977 Rules additionally stated, "Any drill or auger holes that are part of the mining operation <br />shall be plugged with noncombustible material, which shall prevent harmful or polluting drainage". Based <br />on the 1976 law, the 1977 Rules, and the second condition of the Development and Extraction Permit <br />issued to CF&I on January 25, 1978, 1 believe, that CF&I Steel Corporation was required to reclaim <br />borehole LA-218. <br />• On August 3, 1977, SMCRA was enacted. On July 1, 1979, the Colorado Surface Coal Mining <br />Reclamation Act went into effect. On August 30, 1980, the first set of MLRB regulations under the 1979 <br />law went into effect. On December 1, 1980, Colorado's permanent coal program received conditional <br />approval. <br />• On June 24, 1980, Borehole LA-218A was geophysically logged for CF&I Steel Corporation. <br />• On February 4, 1981, CF&I Steel Corporation submitted an application for the Maxwell Mine in accordance <br />with the August 1980 regulations. The application was given the number C-013-81. Section 2.04.5 of this <br />application refers to Exhibit 3, entitled Hydrology, Geology, and Water Quality in Vicinity of the Maxwell <br />and Allen Mines, Las Animas County, Colorado, Final Report to CF&I Steel Corporation, August 12, <br />1980". This Exhibit refers to boreholes LA 218 and LA 218A, stating, "Wells LA 218A and LA 221A were <br />redrills for wells 218 and 221 for which cores and strip logs were already available" and "Samples of <br />selected sandstone intervals were collected from the cores from wells 218, 221, 198, 212, 200, Apache 20, <br />and Apache 43 and the porosity and permeability of each sample was measured in the laboratory." Data <br />obtained from the core obtained from borehole 218 are presented in Table 1, and in Table A-1 of Appendix <br />A, of this Exhibit. Additionally, Table 1 of Exhibit 3, which is a loose table separate from the report, is <br />entitled Chemical - Mineralogical Analyses of Materials Immediately Above and Below Maxwell Coal <br />Seam, Raton Formation - Maxwell Mine", and includes data from "Core LA-218". It is further stated on <br />Page "7 of 7" of "Section 2.05.4 - Reclamation Plan" of this February 4, 1981 application that "Sealing of <br />mine openings, exploration holes, other drill or bore hole, well, or other exposed underground opening will <br />be in accordance with 4.07". On April 14, 1981, the MLRD sent CF&I an adequacy letter regarding this <br />application. <br />• On November 13, 1981, in response to the MLRD April 14, 1981 adequacy letter, CF&I Steel Corporation <br />submitted a new permit application. It is stated on Page 2.05-35 of the November 13, 1981 application that <br />"All boreholes, wells, and exploration holes will be plugged or otherwise sealed to prevent contamination of <br />groundwater intersected by the hole itself. Surface plugs and backfilling of the holes will be completed to <br />6/2/2008