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Application for Phase III Performance Bond Release <br />1.0 General Requirements <br />This application, dated June 25, 2010 is being submitted by Colowyo Coal Company <br />L.P. (Colowyo) Permit No. C-81-019 (dated September 15, 2009- latest renewal) for the <br />purpose of Phase III performance bond release. Colowyo Coal Company L.P.'s <br />Colowyo Mine is requesting that a total of 987.32 acres be Phase III released. The <br />current bond amount for the entirety of Colowyo Mine is $83,156,939. This amount is <br />split among three separate bonds: 1) Liberty Mutual Insurance Company #016-029-909 <br />($22,554,189); 2) Liberty Mutual Insurance Company #016-029-910 ($10,752,595) and <br />3) Travelers Casualty and Surety Company of America #104866620 ($49,850,155). <br />Colowyo is asking for an estimated reduction in bond amount of $5,000,000 for all <br />Phase III release areas. <br />2.0 Summary Information <br />2.1 Legal Description <br />The 987.32 acres requested for Phase III bond release are divided up between two pit <br />locations; East Pit and West Pit. These areas are located within Moffat County, <br />Colorado, in Townships 3 and 4 North, Range 93 West of the 6t" PM. Please refer to <br />Exhibit 1- 2010 Phase III Bond Release Areas for these exact locations. Table 1- <br />Summary of Reclamation Activities provides a list of the individual bond release areas. <br />Listed below is a general legal description of the subject reclaimed areas: <br />• <br />Township 3 North, Range 93 West of the 6t" P.M. <br />Section 2 - W Y2; <br />Section 3 - Major Portions; <br />Section 4 - NE %; <br />Section 10 - NE %; <br />Section 11 - Major Portions; <br />Township 4 North, Range 93 West of the 6t" P.M. <br />Section 33 - S '/ <br />2.2 Summary of Reclamation Activities <br />A summary of the reclamation activities for the Phase III bond release areas is listed <br />below in Table 1. Due to the recent change to Colowyo's reclamation seed mixture <br />located in Permit C-81-019, a copy of the seed mixture used for these specific bond <br />release areas has also been added to this section under Table 2- Colowyo Reclamation <br />Seed Mixture- (Table 2.05-7 & 8 from Permit). Specific bond release criteria for the <br />Phase III areas are addressed separately under Section 3 - Specific Reclamation <br />Activities and Results. <br /> <br />Phase 111 Bond Release Application