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SECTION III - STATUS OF STIPULATIONS <br />There is only one active stipulation attached to the Bear No. 3 Mine permit. All other stipulations have <br />been either complied with or terminated. <br />Stipulation No. 6 <br />The permittee will submit to the Division an annual hydrologic report. This report shall include <br />an analysis of all hydrologic data gathered during the year, an assessment of the impacts of <br />mining during the year, and an assessment of the projected impacts of mining in the following <br />year. This report shall assess the impacts of mining on the quality and quantity of water in <br />surface streams, springs, groundwater aquifers, mine inflow, and mine discharges. <br />SECTION IV - MIDTERM ADEQUACY QUESTIONS <br />Pursuant to 2.08.3, the Division performed an adequacy review of the Bear No. 3 Mine permit. The <br />Division has no questions or comments specific to the 2010 Midterm Review. However, the Division has <br />outstanding field issues concerning the Bear No. 3 Mine Partial Phase One Bond Release (SL-04) request <br />and those adequacy issues that were moved out of Permit Renewal No. 5. These outstanding issues will <br />be dealt with outside of the 2010 Midterm Review process. <br />SECTION V - PERMIT VARIANCES AND SPECIFIC APPROVALS <br />The operation and reclamation plan presented in the original permit application included requests for <br />variances from approximate original contour (steep slope mining), mining within 300 feet of a residence, <br />and disturbance within 100 feet of a perennial stream. The Division approved these variances. <br />Appropriate mitigation or alternative plans, and waivers have been incorporated into the permit <br />application. <br />SECTION VI - BONDING SUMMARY <br />The Division holds an approved bond of $279,224.00 on behalf of the Bear Coal Company for the Bear <br />No. 3 Mine. The bond consists of two certificates of deposit and one cash bond. The first is Certificate of <br />Deposit Number 2840 from the First Colorado National Bank in the amount of $60,000.00. The second is <br />Certificate of Deposit Number 9051819408 from Wells Fargo Bank West, N.A., in the amount of <br />$100,000.00. The cash bond is number 5047 for $119,224.00 from the First Colorado National Bank. <br />Rule 3.02.2(4) requires that the reclamation liability estimate be assessed in the midterm adequacy review <br />and adjusted for good cause shown when the cost of future reclamation changes. However, because the <br />reclamation cost estimate for the Partial Phase One Bond Release (SL-4) adequacy review was made in <br />December of 2009 and is still ongoing, a separate reclamation cost estimate for the 2010 Midterm Review <br />will not be made. <br />c:/word/bear3/Bear No. 3 2010 Midterm Findings <br />4