2009-04-29_GENERAL DOCUMENTS - C1981033

• Permit No: C1981033
• IBM Index Class Name: General Documents
• Doc Date: 4/29/2009
• Doc Name: Preliminary Submittal Adequacy Review Letter & Cost Estimate for Bond Release
• From: DRMS
• To: Bear Coal Company
• Permit Index Doc Type: General Correspondence
• Email Name: JJD
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
April 29, 2009
Mr. Daniel E. Bear
Bear Coal Company
P.O. Box 1754
Paonia, Colorado 81428
RE: Bear No. 3 Mine, Permit No. C-81-033, Bear Coal Company
SL-4, Partial Phase One Bond Release, Preliminary Adequacy Review
Dear Mr. Bear:
COLORADO
D I V I S I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Colorado Division of Reclamation, Mining and Safety (Division) has finished its adequacy review of
Bear Coal Company's (BCC) preliminary submittal of the partial phase one bond release (SL-4) for the
Bear No. 3 Mine.
The Division's preliminary review of the reclamation cost estimate for SL-4 assumes that BCC has completed
the reclamation tasks for which bond release is being requested, and assumes the completed reclamation is in
accordance with the approved plan, The Division estimates that the reclamation liability can be reduced by a
maximum of $158,941.00. BCC has not requested Phase I release on the entire disturbance area, so the
proposed release amount is less than the maximum release allowable by Rule 3.03.1(2)(a). The Division
estimates that the revised required bond amount would be $120,283.00. Again, this estimate is made under the
assumption that reclamation has been completed as reported by BCC. The Division notes that certain
reclamation tasks remain and that these tasks need to be completed before SL-4 can be formally submitted.
In accordance with Rule 3.03.1(2)(a), up to sixty percent of the applicable bond shall be released when the
permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved
reclamation plan; up to eighty five percent shall be released upon the establishment of vegetation which
supports the postmining land use and meets the approved revegetation success standards (Rule 3.03.1(2)(b));
and the remaining reclamation bond may be released at the end of the revegetation responsibility period and
when the permittee has successfully completed reclamation operations in accordance with the approved
reclamation plan (Rule 3.03.1(2)(c)). For the Bear No. 3 Mine, the reclamation liability for the entire site was
estimated in 2007 to be $279,224.00. Based on this original liability figure, maximum release amounts by rule
are shown on the table below.
Maximum Release Minimum Retention
Initial Liability $279,224.00
Phase I $167,534.40 $111,689.60
Phase H $69,806.00 $41,883.60
Phase III $41,883.60 $0.00
BCC's preliminary document indicates that a Phase I bond release on the entire area will not be requested, and
it is also apparent that BCC is requesting a release that is greater than that allowed by Rule 3.03.1(2)(a) (up to
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