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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 C O L O RA D O <br /> <br />Phone: (303) 866-3567 D I VI I S ION OF <br /> <br />FAX: (303) 832-8106 RECLAMATION <br /> MIN I N G <br /> - St- <br /> SAFETY <br />April 21, 2009 <br />Bill Ritter, Jr. <br />Governor <br />To: Joe Dudash Harris D. Sherman <br />Executive Director <br />From: Susan Burgmaier Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Re: Bear No. 3 Mine, Permit No. C-1981-033, Bear Coal Company <br />SL-4, Partial Phase One Bond Release, Preliminary Submittal Adequacy Review <br />Per your request, I have reviewed Bear Coal Company's preliminary bond release request document. Assuming <br />Bear Coal Company has completed the reclamation tasks they for which they are requesting release, and <br />assuming the completed reclamation is in accordance with the approved plan, I estimate that the Division could <br />reduce the liability by a maximum of $158,941.00. The operator has not requested Phase I release on the entire <br />disturbance area, so the proposed release amount is less than the maximum release allowable by Rule <br />3.03.1(2)(a). I estimate that the revised required bond amount would be $120,283.00. Again, this estimate is <br />made under the assumption that reclamation has been completed as reported by the operator. <br />In accordance with Rule 3.03.1(2)(a), up to sixty percent of the applicable bond shall be released when the <br />permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved <br />reclamation plan; up to eighty five percent shall be released upon the establishment of vegetation which <br />supports the postmining land use and meets the approved revegetation success standards (Rule 3.03.1(2)(b)); <br />and the remaining reclamation bond may be released at the end of the revegetation responsibility period and <br />when the permittee has successfully completed reclamation operations in accordance with the approved <br />reclamation plan (Rule 3.03.1(2)(c)). For the Bear Mine, the reclamation liability for the entire site was <br />estimated in 2007 to be $279,224.00. Based on this original liability figure, maximum release amounts by rule <br />are shown on the table below. <br /> Maximum Release Minimum Retention <br />Initial Liability $279,224.00 <br />Phase 1 $167,534.40 $111,689.60 <br />Phase II $69,806.00 $41,883.60 <br />Phase III $41,883.60 $0.00 <br />Bear Coal Company's preliminary document indicates that they will not be requesting Phase I bond release on <br />the entire area, and it is also apparent that they are requesting a release that is greater than that allowed by <br />Rule 3.03.1(2)(a) (up to $167,534.40), were all of the reclamation eligible for Phase I release. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines