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Mining operations have been completed at the Seneca II Mine. The final area to be mined was <br />the Wadge East Area pit. Coal removal was completed at this location in August 1999. Prior to <br />the cessation of mining, production rates were approximately 600,000 tons per year. Strip pits <br />have all been backfilled and graded, topsoil has been redistributed on interim and permanent <br />program reclamation areas, and all graded areas have been seeded and planted. Remaining <br />activity is limited to reclamation of long term facility areas and site maintenance. <br />With regard to Phase I bond release, the approved reclamation plan for the Seneca II Mine <br />required rough backfilling and grading to be completed within 180 days following coal removal and <br />not more than four spoil ridges behind the active pit. A limited variance for contemporaneous <br />reclamation was granted for the Wolf Creek and Wadge pits. <br />The final reclamation plan for the Seneca II Mine includes retention of numerous permanent <br />facilities including roads and culverts, postmine drainage channels, sedimentation ponds, and <br />stock ponds. There are approximately 13.5 miles of haul roads that were retained as permanent <br />roads as shown on Exhibit 13 -2A of the permit. Permanent culvert locations are given on <br />Exhibit 13 -2A in the PAP. <br />Sedimentation Ponds 002, 003, 004, 008, and the PECOCO Pond shown in the PAP on Exhibit 7- <br />19, Postmining Drainage Control and Exhibit 13 -2A, Postmining Topography and Permanent <br />Features will remain as permanent structures. <br />SCC has twelve permitted stock ponds at the Seneca II Mine primarily for livestock grazing and <br />secondarily as wildlife habitat. The following stock ponds will remain as permanent features: T- <br />4, T -8, T -16, T -17, T -20, T -26, T -28, T- 29, T -30, T -31, T -32, and T -33. The locations of the stock <br />ponds are shown on Exhibit 7 -19 and 13 -2A of the permit. <br />Drainage reestablishment consisted of the design and construction of 23 permanent postmining <br />drainage channels. The postmine channels are identified as PM -1 through PM -23 and are <br />shown on Exhibits 7 -19 and 13 -2A of the permit. <br />Permit, Performance Bond, and Bond Release History <br />The permanent program mining permit was issued on September 23, 1981. Subsequently there <br />have been five successive permit renewals approved; the most recent, Permit Renewal No. 5, <br />was issued May 3, 2007, for a permit term that will expire February 17, 2012. The Division <br />currently holds a total reclamation bond amount of $7,183,489.00, in three corporate surety <br />bonds, as shown in the table below. <br />Page 5 of 30 <br />