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Phase 2 Release Criteria and Results <br />Phase 2 bond release of coal mine is based on the following Colorado Division of <br />Reclamation, Mining, and Safety criteria: <br />Rule 3.03.1(2) (b) <br />Up to eighty-five percent of the applicable bond amount shall be released upon the <br />establishment of vegetation which supports the approved land use and which meets the <br />approved success standard for cover, pursuant to 4.15.8, meets applicable productivity <br />standards for prime farmlands or alluvial valley floors pursuant to 3.03.1(3)(b), or <br />croplands pursuant to 4.15.9. With the exception of prime farmlands, evaluation of <br />vegetation establishment pursuant to this paragraph is based on statistically valid data <br />collected during a single year of liability period; <br />The 2007 Vegetation Sampling for Phase 2 Bond Release: Irrigated Pasture and <br />Dryland Pasture report by 1310-Logic Environmental in Appendix B demonstrates that <br />both the Irrigated Pasture and Dryland Pasture areas meet the requirements of the above <br />rule. <br />For vegetation cover, Rule 4.15.8(3)(a) requires: "...demonstrate that the revegetated area <br />cover is not less than 90 percent of the reference area cover or 90 percent of the approved <br />standard...". According to the BIO-Logic report, Irrigated Pasture reclaimed area vegetation <br />cover is 118.8% of the required standard. Dryland Pasture reclaimed area vegetation cover <br />is 117.3% of the reference area cover. <br />Details of the statistical analysis of the revegetation is present in the same BIO-Logic <br />report. <br />14