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Only costs associated with highwall reduction, backfilling and grading, road reclamation <br />and drainage control reestablishment were released. No costs for topsoil replacement, <br />pond removal, reseeding, maintenance or equipment mobilization were released. <br />The following are paragraphs you can insert in the findings regarding the floating bond <br />and the recalculation of the bond for the Phase I Bond Release: <br />Approximately 480 of the acres in the approved Phase I Bond Release area do not <br />have backfilling and grading dollars attached due to the floating bond method of <br />estimating. This method uses a worst-case disturbance for a 5-year permit term <br />(and subsequent 5-year terms) to estimate a maximum liability for backfilling and <br />regrading a pit at a point in time. Once the mine has backfilled a pit cut and <br />moved to the next cut in the sequence, the liability dollars "float" off of the <br />reclaimed pit and onto the active pit. While the liability dollars float off of a pit, <br />the requirement for performing the backfilling and regrading and drainage <br />reestablishment and going through the Phase I Bond Release process still remain. <br />While the liability dollars float from one pit to the next as mining progresses at a <br />surface mine, as described above, all dollars for topsoil replacement and <br />revegetation (including vegetation failures) are cumulative. The Division bonds <br />for topsoil replacement and revegetation costs for the entire disturbed area until a <br />Phase II and/or Phase III Bond Release is approved. No bond dollars are <br />"floated" from one pit to the next, as backfilling and regrading dollars are, or <br />released for any topsoil replacement or revegetation tasks in a Phase I Bond <br />Release. <br />The Division recalculates the liability for all remaining work at the site prior <br />determining the amount that will be released. (The remaining work is all work <br />that will remain following the Phase I Bond Release.) By calculating the <br />remaining liability the Division ensures that it has enough bond monies to <br />complete the remaining reclamation, if needed. The difference between the <br />original liability and the remaining liability becomes the proposed release amount. <br />The proposed release amount is then compared with the original bond amount and <br />a proposed release percentage is calculated to ensure that the Division is not <br />releasing more than the amount allowed pursuant to Rule 3.03.1(2)(a). For the <br />Seneca II-W Mine Partial Phase I Bond Release SL-02, the Division proposes to <br />release $2,038,488.00. The current liability for the mine is $11,117,348.00. <br />Based on these amounts, the Division is proposing to release 18.34% of the <br />Seneca II-W bond. <br />Please let me know if you have any questions or need any additional information. <br />Attachments