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Seneca Coal Company <br />Seneca II-W Mine <br />SL-3 - Phase I Bond Release Request <br />0 I. INTRODUCTION <br />July 2010 <br />An initial Phase I Bond release request (SL-2) was submitted in April 2009 and received partial <br />release of the II-W mine area in June 2010. This submittal represents a second formal Phase 1 <br />bond release request (SL-3) on additional reclaimed areas at the Seneca Coal Company, LLC <br />(SCC), Seneca II-W Mine, Permit No.C-1982-057. The Seneca II-W Mine is located <br />approximately seven miles south of the Town of Hayden, Colorado off of Routt County Road 53. <br />Seneca II-W is a largely reclaimed surface type coal mine non-federal surface. Coal extraction <br />began at Seneca II-W in 1990 and ceased in January 2006, due to a combination of difficult <br />mining conditions and economic factors. During the life of the mine over 12 million tons of coal <br />were produced. Reclamation grading, topsoil replacement and seeding of the mine pit areas have <br />been completed. Various long-term facilities will continue to be used during the liability period <br />(select road segments, the shop facility, sedimentation ponds, etc.). These facilities and <br />structures will be reclaimed in future years or will be retained as permanent features upon <br />approval by the Colorado Division of Reclamation, Mining and Safety (CDRMS). A copy of the <br />complete approved permit is located in the Hayden Public Library in Hayden, Colorado. <br />The request for Phase I Bond Release consists of areas that have been backfilled, graded, and <br />drainages reestablished from the beginning of mining (1990 to date). This application is <br />submitted in accordance with the Colorado Division of Minerals and Geology Guideline <br />Regarding Selected Coal Mine Bond Release Issues (April 18, 1995), Rule 3.03 Release of <br />Performance Bonds. <br />II. GENERAL REQUIREMENTS <br />Date of Request-------------------------------------- July 15, 2010 <br />Permittee --------------------------------------------- Seneca Coal Company, LLC <br />Permit Number-------------------------------------- C-1982-057 <br />Date Permit was Approved ----------------------- December 31, 1985 <br />Mine Name ------------------------------------------- Seneca II-W Mine <br />Phase of Bond Release requested---------------- Phase I (SL-3) <br />Total Acres within Permit ------------------------ 4,093.0 <br />Total Acres Disturbed --------- -------------- ------ 1,381.9 <br />Number of Acres Requested for Release ------ 414.0 <br />Acres and Bond Previously Released ------ 721.9 acres/$2,038,044 <br />Reclamation Liability (Bond Amount) --------- $ 9,078,860 <br />Dollar Amount Requested for Release --------- $ 2,641,250 <br />• <br />SL-3 -1