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IV. PROPOSED DECISION <br />Based on the observations above, the Colorado Division of Reclamation, Mining, and Safety proposes to <br />partially approve Seneca Coal Company's request for a Phase I bond release for the Seneca II-W Mine. <br />This proposed decision will release the applicant from liability for backfilling, grading, and drainage <br />reestablishment on 721.9 acres of the site. SCC originally requested that 1166.2 acres be released. <br />Specifically excluded from the Phase I bond release decision are 402.85 acres in the South Extension <br />Area, 10.0 acres for the Pit A highwall slump, 0.59 acres for drainage channel reconstruction, 0.03 acres <br />for the Culvert 1-1 area, 12.1 acres for a scraper road cut exclusion, and 18.7 acres for roads where as- <br />built certifications are needed. <br />Phase I <br />The Division holds a performance bond in the amount of $11,117,348.00 for the Seneca II-W Mine. <br />Seneca requested a release of $4,864,928.00. The Division proposes to release $2,038,044.00. The <br />Division's proposed release amount is lower due primarily to the exclusion of South Extension area. <br />This release will apply to the original permit area where the A, B, C and D pits were located, and most of <br />the drainages in the original permit area. The remaining bond liability, after the proposed release for <br />SL2 and as updated for current costs, will be $9,078,860.00. <br />Table 1 provides a summary of the bond release. On the table, Column A lists the current bond amounts <br />by task as calculated for the 2008 Midterm. Column B shows the costs that are proposed for release <br />with SL-2. Costs proposed for release are associated with highwall reduction, backfilling and grading <br />and drainage control reestablishment that are proposed for release. Costs associated with the exclusion <br />areas will be retained in the bond. No costs for topsoil replacement, pond removal, reseeding, <br />maintenance or equipment mobilization were released. Column C lists the remaining task cost that has <br />been adjusted using 2010 costs. Column D shows the amount of bond the Division can release for each <br />task after adjusting for current costs. <br />The proposed amount to be released is less than the sixty percent of the current required surety and is <br />eligible for release under Rule 3.03.1(2) (a). The remaining $9,078,860.00 is sufficient to assure <br />completion of the all reclamation work at the site if the work had to be performed by the Division, <br />including the cost of topsoil redistribution and reestablishing vegetation on any revegetated areas, should <br />those areas fail. <br />Any person with a valid legal interest which might be adversely affected by this proposed decision may <br />request a formal public hearing before the Mined Land Reclamation Board in accordance with Rule <br />3.03.2(6). Public notice of this proposed decision will be published twice in the Steamboat Pilot as soon <br />as possible. Requests for public hearing must be submitted to the Division in writing within thirty days <br />of the first publication in the Steamboat Pilot. If no hearing is requested within those thirty days, the <br />Division's decision will become final. <br />18