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7. On the basis of evidence submitted by the applicant and received from other state and federal <br />agencies as a result of the Section 34-33-114(3) compliance review required by the Colorado <br />Surface Coal Mining Reclamation Act, the Division finds that, based on information <br />received from the Office of Surface Mining Applicant Violator System, operations owned or <br />controlled by Blue Mountain Energy Inc. do not own or control any operations which are <br />currently in violation of any law, rule, or regulation of the United States, or any State law, <br />rule, or regulation, or any provision of the Surface Mining Control and Reclamation Act or <br />the Colorado Surface Coal Mining Reclamation Act. (2.07.6(2)(g)(i)). <br />8. Blue Mountain Energy Inc. does not control and has not controlled mining operations with a <br />demonstrated pattern of willful violations of the Act of such nature, duration, and with such <br />resulting irreparable damage to the environment as to indicate intent not to comply with the <br />provisions of the Act. (2.07.6(2)(h)). <br />9. The Division finds that surface coal mining and reclamation operations to be performed <br />under this permit will not be inconsistent with other such operations anticipated to be <br />performed in areas adjacent to the permit area. (2.07.6(2)(i)). <br />10. The Division currently holds bond in the amount of $5,598,625.00 in the form of a corporate <br />surety bond. For this Permit Revision (PR-06), no update in the estimated cost of <br />reclamation for the worst-case disturbance that will occur during the permit term was <br />assessed due to the fact that no new surface disturbance was proposed. <br />The bond amount of $5,598,325.00 reflects the Division's projection of reclamation costs for <br />worst-case disturbance which will occur during the proposed permit term. <br />11. The Division has made a negative determination for the presence of prime farmland within <br />the permit area. The decision was based on a pre-application investigation of the soils found <br />within the proposed permit area. Pursuant to 2.04.12(2) criteria, the applicant has provided <br />information which demonstrates that lands within the permit area, which could be used as <br />cropland, are not irrigated or naturally sub-irrigated, have no dependable water supply of <br />adequate quality, and receive less than 14 inches of annual precipitation. Therefore, the <br />Division hereby renders a negative determination for the presence of prime farmland within <br />the permit area. (2.07.6(2)(k)). <br />12. Based on information provided in the application the Division has determined that an <br />alluvial valley floor (AVF) exists within the permit or adjacent area. The alluvial valley <br />floor is adjacent to the White River. A surface water lagoon and associated access roads and <br />water line facilities have been constructed on an undeveloped portion of the alluvial valley <br />floor that is not significant to farming, near the confluence of Scullion Gulch and the White <br />River. Alluvial water level and quality is monitored in this vicinity. Kenney Reservoir, <br />which is to the southwest of the mine site off of the permit area, has inundated a significant <br />portion of the AVF within the permit area. The Division finds that the proposed surface coal <br />mining operation will not affect either AVF. <br />Deserado Mine 17 September 19, 2008