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In this Phase II bond release, the applicable bond amount determined by the Division was
<br />$4,402,022.00. The percentage of reclamation bond retained between the approved Phase
<br />I bond release and Phase II bond release is 35 percent of the total reclamation bond.
<br />Multiplying the applicable reclamation bond amount by 35 percent yields the total bond
<br />amount eligible for release for the permit area for all Phase II bond release actions, or,
<br />$1,540,708.00. The acreage proposed for Phase II bond release under this application is
<br />51.05 acres. The permitted acreage is 610.86 acres, and the total acreage disturbed over
<br />the life of the mine is 437.69 acres. From this point in our calculation, we propose to use
<br />the actual area disturbed (437.69 acres) rather than the permit area (as the Division did in
<br />SL-03) for the reason that there was, and is, no reclamation liability for areas within the
<br />permit area that have not been disturbed, therefore the reclamation bond does not apply to
<br />those undisturbed areas, and undisturbed areas should not be used in any bond release
<br />calculations. The percentage of area requested for Phase II bond release in this
<br />application is 11.66 percent (51.05 acres/ 437.69 acres). This percentage, multiplied by
<br />the reclamation bond amount eligible for Phase H bond release amounts to $179,646.00
<br />($1,540,708.00 x 0.1166). Therefore, the reclamation bond amount requested for release
<br />in this Phase II application is $179,646.00.
<br />Legal Description of the Area Requested for Bond Release: The Phase II bond release
<br />application requests release of bond and liability for successfully establishing vegetation
<br />and demonstrating that suspended solids contributions to runoff or streamflow outside the
<br />permit area do not exceed pre-mining levels at Areas 2, 5, 6, 7, 9, 10, 15, 16, 19, 23, and
<br />29 within the mine site, located in portions of Sections 25 and 36, T3N, R64W, Sixth
<br />Principal Meridian, Weld County, Colorado. This area comprises approximately 51.05
<br />acres.
<br />Map: The map, Coors Energy Company Vegetation/Re-Vegetation Map (appended with
<br />the Vegetation Reports) identifies the areas requested for Phase II bond and liability
<br />release.
<br />Dates of Reclamation Work: Reclamation work was completed in the areas requested
<br />for release in 1998, 1999, 2000, 2002, and 2003 by Coors Energy Company.
<br />Description of Bond Release Amount Request: This Phase II bond release application
<br />requests release of bond and liability for successfully establishing vegetation and
<br />demonstrating that suspended solids contributions to runoff or streamflow outside the
<br />permit area do not exceed pre-mining levels at Areas 2, 5, 6, 7, 9, 10, 15, 16, 19, 23 and
<br />29 totaling approximately 51.05 acres in size. This sedimentology demonstration in this
<br />application shows the areas reclaimed meet the requirements for erosion control, and
<br />meet the final bond release vegetation standard for cover, total herbaceous production,
<br />and species composition (enclosed vegetation studies). The areas requested for release
<br />are in conformance with the approved post-mining land use which has been implemented.
<br />Remaining reclamation obligations at the mine site include the final reclamation of the
<br />remaining area of the "B" Pit, the long term spoil area, topsand piles A-1, A-3, and B-1,
<br />the facilities area, and additional miscellaneous ancillary areas.
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<br />Coors Energy Company Keenesburg Mine Page 2
<br />Phase 11 Bond Release: Areas 2, 5, 6, 7, 9, 10,15, 16, 19, 23, and 29
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