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Surface Water Impacts: <br />Compliance with Instream Numeric Standards (Colorado Water Quality Control <br />Commission Regulation 3.3.0). The Keenesburg Mine does not discharge surface waters <br />beyond its boundaries and, therefore, it has not caused exceedances of instream numeric <br />standards in the South Platte River basin. The Colorado Water Quality Control Division <br />terminated the mine's NPDES discharge permit several years ago after finding that no surface <br />discharges are likely. <br />Prevention of impacts to surface water that adversely impact the postmining land use <br />within the permit area (CDMG regulation 4.05.1(2)). There are no surface water features in <br />the permit area. <br />Prevention of material damage to the hydrologic balance outside the permit area (CDMG <br />regulation 4.05.1(1)). Mining and reclamation at the Keenesburg Mine have not caused impacts <br />to the hydrologic balance outside the permit area. Oberved impacts are consistent with the <br />probable hydrologic consequences (PHC) section of the permit application which projects future <br />impacts to be minor. <br />Release Request <br />The total amount of bond applicable to the bond release area is $479,863. Phase I bond release is <br />being requested for the bond release area. Section 3.03.2 restricts the amount of bond that is eligible <br />for release in a Phase I release to 60% of the applicable bond; therefore, 60% of the applicable bond, <br />or $287,918 is eligible for release, assuming all other bond release requirements are met (Table 2). <br />V. PROPOSED DECISION <br />Based on the findings set forth above, the Division proposes to approve GEC's request for Phase I <br />bond release. The amount proposed for release is $287,918. This proposed decision will release <br />CEC from liability for backfilling, grading, and drainage re-establishment in the bond release area. <br />The remainder of the permit area that has not previously undergone Phase I release will remain <br />secured by bond for all reclamation work. <br />The Division currently holds a reclamation bond from CEC in the amount of $2,614,909. Current <br />reclamation liability is $2,755,872. The Division proposes to release $287,918 of the bond, leaving <br />reclamation liability of $2,467,954. The Division proposes to return $146,955 of the bond, leaving <br />bond on deposit of $2,467,954, the same amount as the reclamation liability. This amount will be <br />retained for the remainder of all permitted areas at the Keenesburg Mine, and is sufficient for a third <br />party to cover the cost of reestablishing revegetation on the lands that have not yet received Phase II <br />bond release. The retained amount is approximately $5,622 per acre ofrevegetated lands covered by <br />the bond. <br />8