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<br />Lands included in the Bond Release Request
<br />The Edna Mine permit area covers approximately 3,257.3 acres. Chevron Mining, Inc. is
<br />requesting Phase I, II, and III (final) release on 13.3 acres shown in Attachment B of the
<br />bond release application. These 13.3 acres are composed of a portion of a gravel pad, an
<br />entrance gate, an access road, and an area of reclaimed sediment ponds at the north end of the
<br />Oak Creek facilities area. All lands in the permit area that are outside the total 13.3-acre
<br />bond release area are either the subject of another Phase III bond release application (SL-11)
<br />or have previously received final bond release.
<br />Dollar Amount of Bond Release Request
<br />The Division currently holds a reclamation bond in the amount of $3,071,961.00 from
<br />Chevron Mining, Inc_ Chevron Mining Inc. proposes a reduction of $300,664,00 in the
<br />amount of bond obligation as a result of SL-10.
<br />II. SUMMARY OF THE BOND RELEASE PROCESS
<br />Reclamation History of Bond Release Area
<br />In 1982, the Division held two bonds for the Edna Mine. One, in the amount of $1,642,000,
<br />was posted in 1977 and is often referred to as the "Life of Mine Bond". The other, in the amount
<br />of $2,631,945, was posted in 1981 and is often referred to as the "Permanent Program Bond".
<br />In April of 1983, Pittsburg and Midway Coal Mining Company (P&M), the previous permittee,
<br />applied for full liability release of reclaimed lands bonded by the "Life of Mine Bond". On May
<br />1, 1984, the Division proposed to approve the release of $1,622,000 and to retain $20,000 for
<br />stabilization of several gullies. During the week of May 14, 1984, a landslide, known as the
<br />"South of Shop Slide", occurred in a portion of the area that was the subject of the release. On
<br />June 11, 1984, the Division objected to its own proposed decision and requested a Board
<br />Hearing. In September 1984, the Board denied the Division's request, affirmed the Division's
<br />previous proposed decision, approved release of $1,622,000, and retained $20,000 for
<br />stabilization of gullies.
<br />In March of 1986, P&M applied for full liability release of six acres in Section 24, T4N, R85W,
<br />6t' P.M. This request for liability release was specific to the $2,631,945 "Permanent Program
<br />Bond". No dollar amount was requested for release, as P&M desired that the released liability
<br />be transferred to another portion of the mine. The Division approved this full liability release in
<br />May of 1986. This release appears to be the first liability release associated specifically with the
<br />"Permanent Program Bond".
<br />In November of 1987, in conjunction with a Settlement Agreement pertaining to Permit
<br />Renewal RN-01, the Division and P&M agreed that the "Permanent Program Bond" should be
<br />increased from $2,631,945 to $7,121,196. In December of 1987, P&M submitted a bond rider
<br />increasing the bond.
<br />Edna Mine Page 3 December 11, 2009
<br />Phase I, II, and III Bond Release
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