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Permanent Program Areas <br />Under Colorado's Permanent Program, the process of releasing the reclamation liability bond for a <br />mine site is explained in Rule 3.03 and further described in the Division's 1995 Guideline Regarding <br />Selected Coal Mining Bond Release Issues. The bond release process involves three phases. At <br />Phase One, Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be <br />released when the permittee successfully completes backfilling, regrading, and drainage control in <br />accordance with the approved reclamation plan." <br />SCC's approved reclamation plan prepared in accordance with Rule 2.05.4 is contained in Volume <br />12, Tab 13 and Volume 10, Tab 12 of the PAP. The areas pertaining to Colorado's Permanent <br />Program are affected lands mined and reclaimed after September 23, 1981 following SCC's receipt <br />of their Mining Permit from the Mined Land Reclamation Division. <br />Evaluation and inspection of the permanent program areas was based on the specific <br />requirements of the reclamation plan and the functional requirements of the post- mining land <br />use. Criteria for bond release included the following: <br />1. Hillslope and drainage channel gradients and general design compliance; <br />2. Performance of the reconstructed topography. Symptoms of failure or <br />instabilities such as slumping or exposed highwalls were examined; <br />3. Hillslope design /function with regard to erosion; <br />4. Swales and depressions with regard to numbers of features and effect on post - <br />mining land use; <br />5. Blending of regraded land to undisturbed areas; <br />6. The functioning of drainages with regard to knickpoints, blending at <br />disturbance boundaries and channel erosion; <br />7. Erosional features; and <br />8. Drainage control for the reclaimed area, including upslope diversions. <br />III. OBSERVATIONS AND FINDINGS <br />The following discussion of observations and findings focuses on the results of backfilling and <br />grading work and drainage reestablishment, relating this work to reclamation plan requirements. <br />This discussion is primarily based on the inspection conducted July 14, 2009. Relevant <br />documentation developed over the past several years is included in previous inspection reports <br />and referenced in this discussion as appropriate. In addition, Post - Mining Topography (Exhibit <br />E), Cross - Sections of Backfilled and Graded Areas, and As -Built Drainage Profiles were included <br />in the bond release application and reviewed by the Division during the technical evaluation of <br />the bond release application. <br />Page 8 of 30 <br />