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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 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 8, 2009 <br />Roy Karo <br />Seneca Coal Company, LLC <br />37796 Routt County Road 53 <br />P.O. Box 670 <br />Hayden, CO 81639 <br />Re:. Seneca II Mine (Permit No. C-1980-005) <br />Bond Release Application No. 3 (SL-3) <br />Dear Mr. Karo: <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />In accordance with Rule 3.03.2(5)(b) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining (Rules), you are hereby notified that the Division's decision to <br />Approve Bond Release Application No. 3 for the Seneca H Mine became final on May 6, 2009. No <br />requests for an adjudicatory hearing on our proposed decision were received. <br />Bond Release No. 3 reduces your reclamation liability by $1,975,695.00. The current liability is now <br />$4,336,149.00. If you choose to reduce or replace your existing bond, it must equal or exceed <br />$4,336,149.00. Note that the bond amount associated with Permit No. C-1980-005 (Bond # 30959 and <br />Bond #6510675) can be reduced to a minimum of $4,050,665.00. The bond amount associated with <br />Permit No. C-754C-A (Bond # 6510662) can be reduced to a minimum of $285,484.00. The Division <br />suggests you provide a copy of this letter, the OSM concurrence letter dated May 1, 2009, and the BLM <br />concurrence memorandum dated April 28, 2009 to your bonding company for written evidence for <br />approval to reduce your bond. Please find these documents attached. <br />If you have questions or need additional information, please contact me. <br />Sincerely <br />Daniel T. Mathews <br />Environmental Protection Specialist <br />cc: Johanna R. Cramer, CDMG <br />Enclosure <br />C-SIr18_C1980005 DTM 050120MIS809.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines