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SECTION V - PERMIT VARIANCES AND SPECIFIC APPROVALS <br />During the Seneca II-W period of operations, the Division authorized a number of variances from the <br />requirement that rough backfilling and grading be conducted within 180 days following coal removal, pursuant <br />to Rule 4.14.1(1)(c). These variances were approved based on information presented by the operator, <br />demonstrating that such variances were warranted given the operational requirements of the mining methods <br />employed. Details regarding the variances can be found in the Division's Findings of Compliance document <br />for the July 3, 2006 RN-4 proposed decision, and prior Permit Renewal and Permit Revision Findings of <br />Compliance documents. <br />As of September 2008, all pit area rough grading has been completed, and the operator has completed such <br />rough backfilling and grading operations in conformance with all variances authorized by the Division <br />pursuant to Rule 4.14.1(c). <br />SECTION VI - BONDING SUMMARY <br />The Division has reviewed the adequacy of the reclamation bonding instruments, and we have also reviewed <br />the adequacy of the worst case reclamation cost estimate, pursuant to this mid-term permit review. A <br />comprehensive review and revision of the reclamation cost estimate was completed by the Division and <br />forwarded to SCC in a letter of August 6, 2008. The Division calculated a revised worst case liability amount <br />of $11,117,348.00, which exceeded the bond amount held by $1,409,975.00. In response, SCC submitted a <br />proper surety bond rider increasing the bond by $1,409,975.00, which was accepted by the Division on <br />September 2, 2008. The rider increased the total bond amount $11,117,348.00, which corresponds exactly <br />to the liability amount calculated by the Division. As such, the Division now holds acceptable reclamation <br />bond in the required amount. <br />Following is a list of the corporate surety bonds held by the Division for the Seneca II-W permit, all of which <br />have been reviewed and determined to be acceptable. <br />Bond # Amount <br />259743 <br />329942 <br />333695 <br />336393 <br />6510663 <br />K06809005 <br />$300,000.00 <br />$992,236.00 <br />$61,464.00 <br />$3,300,000.00 <br />$4,056,275.00 <br />$2,407,373.00 <br />Total $11,117,348.00 <br />Company <br />Seaboard Surety Company <br />11 <br />Safeco Insurance Company of America <br />Westchester Fire Ins. Company <br />C:/seneca II-W 12-18-03 midterm.doc