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July 14, 2009 indicated that the PM -12A TRM lined channel appeared to be stable and <br />functional, with gradient and capacity in conformance to design specifications. <br />Reclamation Cost Assessment <br />The operator has included documentation in the bond release application in support of a <br />requested release of $197,692.00. As part of the bond release evaluation, the Division <br />reviewed the operator's estimate and justification, and performed an independent cost <br />estimate reflecting the degree of difficulty and estimated cost to complete remaining <br />reclamation. The Division's SL -4 cost estimate reflects the liability reduction based on <br />successful backfilling and regrading, drainage reestablishment, and stabilization within the <br />135.3 acre area for which the Division proposes to grant Phase I bond release. The SL -4 <br />estimate reflects retention of sufficient bond to cover backfilling and regrading of the remaining <br />38.1 acres not yet Phase I released, topsoil replacement on the remaining 755.7 acres not yet <br />Phase II released, and revegetation costs for the entire disturbance area until final Phase III <br />bond release is approved, in accordance with Rule 3.03.1(3)(a). Please see the Division's SL -4 <br />Reclamation Cost Estimate Summary memorandum, attached to this document. <br />Rule 3.03.1(2)(a), limits Phase I release amounts to up to 60% of the bond amount applicable to <br />an increment or a permit area. The original "applicable bond amount" for the entire <br />permanent program disturbance was $9,507,953.00. This "applicable bond amount" was <br />determined with the approval of TR 41. At the time of the first Phase I release, a maximum of <br />60% of the original bond amount, or $5,704,771.80, could have been released. Since not all of <br />the area met the Phase I release standards, a portion of the permit area was not Phase I bond <br />released (as documented in the Findings of Compliance document for SL -1). Estimated costs to <br />reclaim remaining areas of liability following the proposed Phase I release were higher than <br />what would have remained had a full release of up to 60% been granted, so the Division <br />released $3,481,593.00 for Phase I with the SL -1 application. The additional $77,028.00 <br />proposed to be released with SL -4 will result in a total of $3,558,621.00 Phase I released; still <br />well below the maximum allowable amount of $5,704,771.80 because the costs to complete <br />remaining tasks are higher than what would remain were a 60 percent release allowed. <br />The liability amount calculated by the Division for SL -4 is $4,259,121.00; $3,973,637.00 for <br />interim and permanent program disturbance and $285,484.00 for the pre -law areas. This <br />amount reflects the Division's estimate of costs to reclaim remaining disturbance and /or <br />reclamation for which the operator is liable, assuming the work were to be completed by a <br />third party. <br />Summary and Conclusions <br />The Division has completed its review and evaluation of the Phase I bond release request <br />submitted by SCC for the Seneca II Mine. Based upon a review of the mine permit, the applicant's <br />Page 12 of 30 <br />