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Previous Bond Releases
<br />When the Grassy Gap Mine permanent program permit (C-1981-039) was issued on April 23, 1985, Pits 1,
<br />2, 3, and 5 were found to have been backflled, graded, topsoiled and seeded in accordance with State
<br />interim program permit No. 78-45. The permanent program permit expired on April 23, 1990, and the
<br />CMLRB recommended on May 24, 1990, that the renewal of the Grassy Gap Mine permit be denied.
<br />Permit revocation and bond forfeiture proceedings were initiated by the Division on August 23, 1990. The
<br />Division and RCC entered into a Settlement Agreement on June 26, 1990, for the purposes of resolving
<br />certain outstanding violations and ensuring the completion of certain reclamation tasks at the site. The
<br />Settlement Agreement also outlined required reclamation tasks and the process that would be followed for
<br />reclamation liability bond release. Following reclamation activities conducted by RCC, a request for Phase
<br />I, II and III bond release (SL1) was submitted to the Division on November 30, 1990. This 1990 bond
<br />release application requested Phase I, II and III bond release for Pit 2 (27.6 acres); Phase I and II bond
<br />release for Pits 1 (14.3 acres), 3 (30.1 acres), 5 (22.3 acres), and 6 (10.6 acres); and Phase I bond release for
<br />Pit 4 (136.8 acres), as shown in the table below.
<br />SL1 Bond Release
<br />request Phase I acres Phase II Phase III
<br />Pit 1 14.3 14.3 0
<br />Pit 2 27.6 27.6 27.6
<br />Pit 3 30.1 30.1 0
<br />Pit 4 136.8 0 0
<br />Pit 5 22.3 22.3 0
<br />Pit 6 10.6 10.6 0
<br /> 241.7 104.9 27.6
<br />SLl was approved in three partial approvals. On October 5, 1990, a partial Phase I and II bond release was
<br />approved for 15.22 acres in the Pit 4 area, in the amount of $437,696.
<br />On January 6, 1992, a second partial Phase II bond release was approved for 52.00 acres in Pit 4, in the
<br />amount of $40,033. This January 6, 1992 partial bond release approved additional backfilling and grading
<br />of Pit 4, topsoil replacement on Pit 4, and seeding of Pit 4. Three acres on Pit 4 needed additional grading
<br />and were exempted from this January 6, 1992 SL1 partial approval.
<br />On December 22, 1992, a third partial bond release was approved in the amount of $59,271 for completion
<br />of remaining tasks as outlined in the June 26, 1990 Settlement Agreement. The U.S. Office of Surface
<br />Mining (OSM) evaluated the slope stability and reclaimed contours of Pits 5 and 6. The results of OSM's
<br />evaluation were provided to the Division in a memo dated October 9, 1991. The OSM found that Pits 5 and
<br />6 were mined during an interim permit and were reclaimed prior to 1985 and prior to the issuance of the
<br />Grassy Gap Mine permanent program permit. The OSM also determined that the reclaimed slopes at Pit 5
<br />and Pit 6 were stable. Stabilization of the Pit 4 Haul Road was determined to have been successfully
<br />completed. When Permit C-1981-039 was issued to Rockcastle Company on April 23, 1985, backfilling
<br />and grading of Pits 1, 2 and 3 were deemed to have been completed. As such, no bond monies were required
<br />for backfilling and grading of these three pits at the time the permanent program permit (C-1981-039) was
<br />issued. Bond monies were included in the initial bond for establishment of successful vegetation on Pits 1,
<br />2, 3, 4, 5, and 6.
<br />Grassy Gap TOJ 6/5/2009 4
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