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IV. PROPOSED DECISION
<br />Based on the observations above, the Division proposes to approve Coors Energy Company's
<br />request for a Phase III bond release for the Keenesburg Strip Mine. This proposed decision will
<br />release the applicant from remaining liability on bond release blocks 1985/1986/1987 BRB and
<br />1995/1997 BRB in accordance with Rule 3.03.1(2)(b). The Phase III bond release applies to 165.29
<br />acres consisting of parcels 1, 3, 4, 8, 11, 12, 13, 14, 17, 18, 20, 21, 22, 24, 26, 27, and 28. Of the
<br />165.9 acres, the 9.83 acres that have been approved for industrial post-mining land use in the SL4
<br />bond release blocks (in parcels 8, 11, 12, and 20) will be managed by the oil and gas development
<br />lease holder. Coors Energy Company is released of liability for these 9.83 industrial use acres.
<br />PHASE III
<br />The original performance bond for the Keenesburg Strip Mine was $4,402,022.00. During
<br />evaluation of SL1, the Division determined at that time that $335,378.00 of the bond was attributed
<br />to structural demolition costs. Removal of the structural demolition costs resulted in an "applicable
<br />bond amount" of $4,066,644.00. The Division released $1,787,113.00 (including $121,823.00 for
<br />structural demolition) upon approval of SLl (a Phase I/II bond release), and $146,955.00 upon
<br />approval of SL2 (a Phase I bond release), in accordance with Rules 3.03.1(2)(a) and (b).
<br />Applying Rule 3.03.1(2)(c), up to an additional 15% of the "applicable bond amount" can be
<br />released from areas that have previously received Phase I bond release. The Division in SL3
<br />redefined the original bond amount of $4,402,022.00 to be the "applicable bond amount" for
<br />determining bond release, with no subtraction of structural demolition costs prior to calculating
<br />Phase 1/I1/III liability release values.
<br />The total disturbed acreage reported in the 2008 Annual Reclamation Report by Coors Energy
<br />Company is 437.69 acres. The Division calculates the amount eligible for Phase III bond release on
<br />165.29 acres as follows:
<br /> Phase release Acres released Reclamation
<br />liability
<br />Original applicable
<br />liability amount $4,402,022.00
<br />SU I and II 179 (PI) & I I I (PII) -$1,787,113.00
<br />TR32
<br />(bond reduction) I & II tasks 4.5 -$27,384.00
<br />MT4 +$140,963.00
<br />SL2 I 51.76 -$287,918.00
<br />SL3 II 53.9 -$130,189.80
<br />RN5 +17,056.80
<br />SRI -$37,666.00
<br />SL4 III 165.29 -$167,911.00
<br />Remaining liability
<br />
<br />amount
<br />$2,121,860.00
<br />C1981-028, SL4 10 10/19/2009
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