|
• 1.0 INTRODUCTION
<br />Basin Resources, Inc. (Basin) is submitting this information as a request to the Colorado Division of
<br />Reclamation, Mining, and Safety (CDRMS) for approval of year 2006 sampling event data (year 10 since
<br />initial seeding) for Phase III bond release on the Irrigated Pasture and Rangeland Reclaimed Areas at
<br />Basin's Golden Eagle Mine (Permit No. C-81-013). An area is eligible for Phase III bond release when
<br />Phase I and Phase II bond release has been granted; the fulfillment of the 10-year liability period since
<br />initial seeding; documentation of revegetation success; proof of post-mining land use capability; and a
<br />minimum of 5 years since the last seeding, fertilization, and rill and gully repair which proves that erosion
<br />has been demonstratively controlled. Basin believes it has satisfied all of these conditions on the Irrigated
<br />Pasture and Rangeland Reclaimed Areas as of the year 2006.
<br />The Golden Eagle Mine is an underground coal mine located in Las Animas County off State Highway
<br />12, approximately 25 miles west of Trinidad, Colorado. The permitted area of the Golden Eagle Mine
<br />covers 5,674 acres, located in Sections 15, 16, 17, 18, 19, 20, 21, 22, 27, 28, 29, 30, and adjoining areas to
<br />the south in Township 33 South, Range 67 West. The area actually disturbed by mining and mine-related
<br />activities encompasses 66.17 acres in Sections 28, 29, 30, and adjoining areas to the south in Township 33
<br />South, Range 67 West.
<br />Coal extraction was terminated on December 31, 1995, with the existing stockpiles of coal removed from
<br />the site the following month. All on-site industrial equipment and structures were dismantled and
<br />removed by November 1996.
<br />Reclamation of the disturbed mine site was completed in two phases. The first phase involved backfilling,
<br />recontouring, redistributing topsoil, and seeding and mulching of the surface facilities area and mine
<br />• water treatment ponds 002 and 005. Drainage controls were established, and no erosion problems have
<br />occurred on the reclaimed areas. Seeding and mulching of the reclaimed areas occurred in the fall of
<br />1996, with limited seeding on the coal waste pile in May of 1997.
<br />The second phase of reclamation involved removal and reclamation of sediment ponds 003 and 004, and
<br />reclamation of the diversion ditches which carried surface water to the ponds. Activities included
<br />backfilling, recontouring, redistributing topsoil, seeding, and mulching. This phase of the reclamation was
<br />completed in late 1998. The location of all of the reclamation areas and corresponding completion dates,
<br />are displayed on Figures 2 and 4.
<br />Basin was eligible for Phase I bond release upon completion of mine-related reclamation activities.
<br />Consequently, on September 2, 1997, Basin filed an application with the Colorado Division of Minerals
<br />and Geology (CDMG) for Phase I bond release. Release of $676,874 was granted on December 11, 1997.
<br />This release reduced the remaining bond amount to $477,085. A second Phase I bond release request was
<br />submitted by Basin on May 8, 1998. CDMG granted release of $111,490 on October 16, 1998, reducing
<br />the amount of bond liability to $365,595.
<br />Basin was eligible for Phase II bond release upon proving successful establishment of approved
<br />vegetation species on each reclaimed area with total cover of at least 90 percent of each corresponding
<br />reference area, and demonstrating that erosion was controlled on the reclaimed areas. Basin filed an
<br />application for Phase II bond release on August 25, 2000. Release of $192,501 was granted in late 2000,
<br />thereby reducing the remaining bond amount to $173,094.
<br />The required bond amount retained by CDRMS is currently $141,892.49. Assuming that CDRMS will
<br />retain 40 percent of the original bond liability ($91,335.00 X 40% = $36,534.00) for the NW-1 vent site,
<br />2215_GoldenEagle MBOND_20063-10-08.doe 1-1
|