2009-10-19_GENERAL DOCUMENTS - C1981028 (2)

Home Browse Search

I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS Coors Energy Company applied for a final bond release (Phase III) on a portion of the Keenesburg Strip Mine, consisting of 165.29 acres, that has been reclaimed in accordance with the Colorado Surface Coal Mining and Reclamation Act. The mine is located in Weld County, in all or portions of Sections 2 and 11, T2N, R64W; and Sections 25 and 36, T3N, R64W; 6th Principal Meridian. The mine area is located in: Township 3 North, Range 64 West Sections 25 and 36 Coors Energy Company (CEC) has previously requested and been approved for three bond releases. Bond release SL1 was approved on August 11, 1998 for Phase I on 179 acres and Phase II on 111 acres. Bond release SL1 released $1,787,113.00 of the reclamation bond. A second bond release, SL2, was approved August 31, 2005. Bond release SL2 approved Phase I release on 51.76 acres. The Division approved $287,918.00 for release from the reclamation liability for ten (10) reclamation parcels included in the request. A third bond release application, SL3, was approved on April 18, 2006. Bond release SL3 was a Phase II bond release. The Division approved the release of $130,189.80 of the reclamation bond for Phase II bond release on ten (10) reclamation parcels. The Division approved a permit renewal (RN5) on October 27, 2006. The estimated cost for completing the remaining reclamation tasks at the time of RN5 was $2,327,437.00. A midterm review (MT5) of the permit and reclamation liability was conducted on May 1, 2009 in accordance with Rule 2.08.3. At the time of the MT5 review, the Division determined the revised cost to complete remaining reclamation and maintenance tasks at the Keenesburg Mine was $2,172,953.00. Following the Division's midterm review, but prior to the proposed decision for SL4, the Division updated costs associated with reclamation tasks (CIRCES cost estimating program) in August 2009. Prior to the SL4 proposed decision, the Division updated the reclamation cost estimate using the August 2009 updated costs, and determined the cost to complete remaining reclamation tasks was $2,289,771.00. Because the amount is $37,666.00 less than the $2,327,437.00 calculated in conjunction with RN5, CEC is eligible for a Bond Reduction (SRI) in the amount of $37,666.00. The Division received Coors Energy Company's application for a final (Phase III) bond release (SL4) on a 165.29-acre portion of the reclaimed area on March 16, 2009. Following four consecutive weeks of publication of the public notice in the Fort Lupton Press, the application was deemed complete on May 8, 2009. The Division conducted a bond release inspection on May 14, 2009. The site inspection was conducted in accordance with Rule 3.03.2(2). Persons at the bond release inspection included Mr. Don MacDonald and Mr. Danny Kipp, representing Coors Energy Company, and Janet Binns of the Colorado Division of Reclamation, Mining and Safety. The surface ownership of the property included in the bond release area is privately owned by Coors C1981-028, SL4 3 10/19/2009