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?-F-s <br />STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />August 6, 2008 <br />Roy Karo <br />Reclamation Manager <br />Seneca Coal Company LLC <br />P.O. BOX 670 <br />Hayden, CO 81639 <br />Re: Seneca II-W Mine (Permit No. C-1982-057) <br />Midterm Review Reclamation Cost Estimate <br />Dear Mr. Karo: <br />COLORADO <br />DI VI S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has initiated a midterm permit review for the Seneca II-W Mine, pursuant to Rule <br />2.08.3(l), and has completed a reclamation cost estimate in association with the midterm permit <br />review, pursuant to Rule 3.02.2(4). The cost estimate, which represents our preliminary <br />determination of the bond amount required, is enclosed. <br />The total bond amount indicated in the estimate is $11,117,348.00. This reflects a liability <br />increase of $1,600,187.00, and exceeds the current bond amount held by $1,409,975.00. The <br />increase is a result of increased equipment costs subsequent to completion of the previous cost <br />estimate. Please provide additional or replacement bond, or rider to the existing bond <br />document, to bring the total bond held to an amount equal to or greater than the estimated <br />liability amount within 60 days, unless acceptable documentation is provided to the <br />Division to support a lesser amount. <br />The Division anticipates completion of the full Midterm Review and issuance of the Midterm <br />Findings by the end of October. <br />Please contact me if you have any questions. <br />Sincerely, <br />j <br />1. ? <br />Dan el T. Mathews <br />Environmental Protection Specialist <br />enclosure <br />GJFO w/o enclosure <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines