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IV. PROPOSED DECISION <br />Based on the observations above, the Colorado Division of Reclamation, Mining, and Safety <br />proposes to approve Western Fuels Colorado's request for a Phase I and Phase II bond release for <br />portions of the New Horizon Mine. This proposed decision will release the applicant from liability <br />for backfilling, grading, and drainage reestablishment on 116.7 acres, and topsoil replacement and <br />successful establishment of vegetation cover on 300.03 acres of the site. <br />SL-11 Phase I Bond Release <br />• Area 1 111.3 Acres <br />• Area 2 5.4 Acres <br />SW % Sec 31 <br />N'h NW % Sec 6 <br />SE % NE '/ Sec 6 <br />T47N,R15W <br />T46N,R15W <br />T46N,R15W <br />SL-11 Phase II Bond Release <br />• Area 1 5.21 Acres <br />SE '/ NE '/ Sec 6 <br />T46N,R15W <br />• Area 2 193.48 Acres N %2 Sec 6 T 46 N, R 15 W <br />• Area 3 23.80 Acres E %2 W %2 NE '/ Sec 6 T 46 N, R 15 W <br />• Area 4 37.44 Acres SW '/ Sec 31 T 47 N, R 15 W <br />• Area 5 26.86 Acres N %2 SE % Sec 6 T 46 N, R 15 W <br />• Area 6 13.24 Acres W %2 SW '/ Sec 31 T 47 N, R 15 W <br />PHASES I and II <br />The Division holds a performance bond, in the form of a self bond, of $4,000,000.00 for the New <br />Horizon Mine. The required surety for the site prior to this release decision was $3,150,563.00. <br />With this decision to approve WFC's request for Phase I and II bond release, the Division proposes <br />to release none of the required surety, as this is a release from liability only. The Division recently <br />reviewed the adequacy of the required surety for the site, in the context of the pending application <br />for Permit Renewal No. 5 (RN-05), and found that the currently approved $3,150,563.00 required <br />surety is insufficient to assure that there are adequate funds for completion of the remaining <br />reclamation work at the site if the work had to be performed by the Division. In order to reduce the <br />reclamation liability at the site, WFC submitted this application (SL-11) for Phases I and II bond <br />release. While reclamation liability at the site will be reduced with the issuance of SL-11, the <br />required surety remains inadequate to cover the cost of reclamation for all disturbed areas not yet <br />released from liability as well as the cost of redistributing topsoil on the areas proposed for Phase I <br />release, and reestablishing vegetation on any revegetated areas, should those areas fail, on the areas <br />proposed for Phase II release. Accordingly, the required surety for the mine will not be reduced <br />with this proposed decision to approve this bond release request (SL-11), and the required surety <br />has been reassessed with the pending renewal application (RN-05). <br />Any person with a valid legal interest which might be adversely affected by this proposed decision <br />may request a formal public hearing before the Mined Land Reclamation Board in accordance with <br />Rule 3.03.2(6). Public notice of this proposed decision will be published twice in the San Miguel <br />Basin Forum as soon as possible. Requests for public hearing must be submitted to the Division in <br />writing within thirty days of the first publication in the San Miguel Bain Forum. If no hearing is <br />requested within those thirty days, the Division's decision will become final. <br />14