2008-10-15_REVISION - C1980005 (7)

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Seneca Coal Company Seneca II Mine Phase I (Part 2) Bond Release Request i VI. PHASE I BOND RELEASE DOCUMENTATION October 2008 Pursuant to Rule 3.03.1, a permittee may request Phase I Bond release upon successful completion of backfilling, regrading and drainage control in accordance with the approved reclamation plan. The approved reclamation plan can be reviewed in its entirety in the Seneca II Mine Permit Application Package located in the Hayden Public Library, Hayden, Colorado. The Phase I reclamation activities have resulted in a stable landform in compliance with the approved conditions in the Colorado Division of Reclamation, Mining and Safety (DRMS) Permit No. C-80-005 The following is a brief summary of the regulatory bond release activities that have been completed. • May 22, 2006 - SCC submitted a Phase I Bond Release Application for 2,247.7 acres of the total 2,299.3 acres disturbed. • December 27, 2006 - DRMS issued a Proposed Decision and Findings of Compliance that released SCC from Phase I liability in the amount of $3,679,464 on 2,054.5 acres. • June 27, 2007 - SCC submitted an application for full bond release on 259.1 acres of Pre-Law reclaimed lands. • November 29, 2007 - DRMS issued a Proposed Decision and Findings of Compliance that released SCC from total reclamation liability in the amount of $871,645 on 257.7 acres. • May 9, 2008 - SCC submitted a Phase II Bond Release Application for 1,793.5 acres. The Proposed Decision and Findings of Compliance have yet to be released. • This Phase I (Part 2) Bond Release application for 135.3 acres includes: 125.3 acres withheld from the May 22, 2006 application (stability issues were rrmediated in 2007) 9.5 acres that were reclaimed in 2007/2008 The following list describes the accompanying maps and documents provided in this package to further document the Phase I (Part 2) Bond Release request. Exhibit A, Phase I (Part 2) Bond Request Areas, shows the location of the 135.5 acres included in this request. Exhibit B, Chronology of Mining, shows the extent of coal removal according to the regulated categories/ timeframes. • Coal Removal Limits Prior to August 3, 1977 - 296.0 acres • Coal Removal limits after August 3, 1977 and Prior to May 3, 1978 - 61.9 acres • Coal Removal Limits after May 3, 1978 and Prior to September 23, 1981 - 345.7 acres • Coal Removal Limits after September 23, 1981 - 855.1 acres A total of 1,558.7 acres of coal were removed during the life of mining at Seneca II (1972 through 2005). Exhibit C, Chronology of Bacldilling and Grading, presents the limits of backfilling and grading according to the regulated categories/timeframes. The extents were determined based on interpretation of pit maps and dates of seeding conducted. • Limits of Backfilling and Grading Prior to August 3, 1977 - 319.3 acres • Limits of Backfllling and Grading after August 3, 1977 and Prior to September 23, 1981 - 523.0 acres • • Limits of Backfllling and Grading after September 23, 1981 -1,414.9 acres 4