2007-06-27_REVISION - C1980005

• Permit No: C1980005
• IBM Index Class Name: REVISION
• Doc Date: 6/27/2007
• Doc Name: Response to May 7, 2007 Comments
• From: Seneca Coal Company
• To: DRMS
• Type & Sequence: SL2
• Media Type: D
• Archive: No

?ECoal NEpa i4 Seneca Coal Company
June 27, 2007
Mr. Mike Boulay
Division of Reclamation, Mining and Safety
101 South 3rd, Suite 301
Grand Junction, CO 81501
[phone]
RECEIVED
JUN 2 7 2007
Division of Reclamation,
Mining and Safety
RE: Seneca II Mine, Permit No. C-1980-005
Draft Bond Release Request (Pre-Law Area)
Response to May 7, 2007 Comments
Mr. Boulay,
Seneca Coal Company (SCC) has reviewed your letter of May 7, 2007 regarding the draft Pre-Law Area Bond Release
Application and would like to thank you for your preliminary review. We offer the following responses and discussion
to address your comments.
We understand that SCC is in the process of developing a plan for the old Wolf Creek Pit aria forgrading work to establish positive
drainage from the Wolf Creek Pond and to stabilize erosion in the formerpit. On page 4 of the Draft Pre-Law Area Bond Release
Request, SCC indicates that $307,951 could be withheld for the 67.4 acres of Old Wolf Creek Pit from the $1,355,000 applied to
pre-law permit 75-54 in the Division's December 27, 2006 Findings. However, the Division will need to see this plan before we can
deers, the draft bond release application complete for the purposes of filing. The Division will use the plan to verify an appropriate
amount of money to be retained for the final reclamation of this pre-law area that was excluded from the Phase I bond release conducted
in 2006.
Response: SCC has developed a plan to establish positive drainage from the Wolf Creek Pond and to stabilize erosion
in the former pit. However, when the Division determines the amount of money needed to conduct this reclamation it
must be calculated in 1977 dollars since these dollars were originally required on an acre by acre basis and were not
recalculated or revised during later permit updates. The Division has been adamant that this is not a floating bond but
applies only to the pre-law area; therefore the money should be proportioned over all the pre-law acres and not
"floated" to the area left to be revegetated. The Pre-SMCRA regulations did not contain provisions for a three-phase
bond release program or floating bonds. Therefore when a reclaimed acre meets the Pre-SMCRA vegetation standards
the dollars proportioned per acre should be released upon application request.
Review of the bond certificates that apply to this pre-law area as referenced in the Pre-Law Bond Release Request,
Section V - Permit Numbers and Reclamation Bonds, shows that there is $1,491,736 in reclamation bond for the entire
326.5 acres of pre-law disturbance. Tbis bond amount, when proportioned over the 326.5 acres equals $4,569/acre.
This cost/acre then results in $307,951 that can be withheld for the 67.4 acres of Old Wolf Creek Pit grading work to
establish positive drainage from the Wolf Creek Pond and to stabilize erosion in the former pit rather than $1,355,000
as originally designated by the Division. SCC is requesting the release of $1,183,785 for the completed 259.1 acres.
Pre-SMCRA rules and regulations did not provide for bond recalculation or revision submits/approvals. Therefore
SCC is attaching the reclamation plan for the Old Wolf Creek Pit to this response letter.
Seneca Coat Company • P.O. Box 670 • Hayden, Colorado 81639
Telephone [phone] • FAX [phone]