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PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />KCC applied for a Phase II Bond Release under the Colorado Surface Coal Mining Reclamation Act <br />following reclamation of the Marr Mine Loadout, and Phase I, II and III Bond Release for permanent <br />structures, facilities and permanent ponds at the Marr Mine area. Phase I and II Bond Release area also <br />requested for the permanent access road to the mine facilities. KCC also requested Phase II Bond Release <br />for the Marr Pit area and Phase III Bond Release for the 720 Pit, Marr Pit and Pit 1 with the exception of <br />two parcels consisting of 8 acres at the Marr Mine area that were seeded in 1999. The requested Phase II <br />release area at the Loadout covers 6.9 acres and was regraded in 1999. The requested Phase III area (the <br />720 Pit, Pit 1, the Marr Pit and mine area permanent structures) consists of 372.7 acres. <br />Reclamation, was completed in the Marr Pit in 1983. The Marr Pit was disturbed and mined prior to the <br />Federal Surface Mining Control and Reclamation Act (SMCRA 1977) and final approval of the Colorado <br />permanent program. However, with the approval of the existing permit, all lands must be reclaimed to the <br />current approved standards. The 720 Pit was regraded in 1993 and reseeded in 1995. Pit 1 was regraded <br />in 1994 and reseeded in 1996. Two areas at the Marr mine area, totaling 8.0 acres, were seeded in 1999 <br />and are not part of this bond release application. The Loadout was reclaimed and seeded in 1999. The <br />lands requested for bond release are in Jackson County with the following legal description: <br />Township 8N, Range 78W, 6th Principal Meridian - Section 2 <br />Township 9N, Range 78W, 6th Principal Meridian - Sections 22, 23, 25, 26, 27 and 35 <br />Township 9N, Range 79W, 6th Principal Meridian - Sections 28 and 29 <br />These areas are shown on the Johnny Moore Mountain, Gould NW, Walden and Eagle Hill 7.5-minute <br />USGS Quadrangle Maps. <br />An application for Phase II and Phase III Bond Release (SL-04) was received by the Division on <br />September 10, 2007. The application was deemed complete on October 9, 2007, after the Division <br />received proof of publication of KCC's legal notice. The notice was published in the Jackson County Star <br />for four consecutive weeks from September 13, 2007 to October 4, 2007. KCC also notified various <br />governmental agencies and landowners within and adjacent to the bond release areas as required by Rule <br />3.03.2(1). No written objections or requests for an informal conference regarding the bond release <br />application were received by the Division. <br />The Division conducted a bond release inspection on October 23, 2007. The site inspection was <br />conducted in accordance with Rule 3.03.2(2). KCC representatives, the U.S. Office of Surface Mining <br />(OSM), U.S. Fish and Wildlife Service, and landowners including the United States Bureau of Land <br />Management (BLM) and the Colorado Board of Land Commissioners were notified of the inspection. <br />Representatives from KCC, the OSM, the BLM, North West Colorado Consultants (NWCC, a consulting <br />firm for the permitee) and the Division were present at the inspection. <br />After review of the application and hydrologic impacts, the Division directed the operator to seal the <br />remaining six monitoring wells at the mine area in accordance with Rule 4.07.3. On September 26, 2008, <br />the surface landowner requested one of these six wells (spoil well SP-1) be transferred to the landowner to <br />use as a stock water well. The operator transferred SP-1 to the landowner in accordance with Rule 4.05.14 <br />and provided proof of acquisition of a well permit to the Division on October 24, 2008. The operator <br />Marr Mine SL4 2