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United States Department of the Interior Q??,FNfox\y?
<br />- OFFICE OF SURFACE MINING
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<br />Reclamation and Enforcement %=2
<br />Western Region Office ?`?qFs
<br />1999 Broadway, Suite 3320
<br />Denver, CO 80202-3050
<br />July 13, 2010
<br />Loretta Pineda, Director ,??? 14 2010
<br />Division of Reclamation, Mining and Safety v,= a??ian,mt4oa.
<br />1313 Sherman Street, Room 215 Mining and S314*'J
<br />Denver, CO 80202
<br />RE: Partial Phase I Bond Release (SL-2), Yoast Mine, Permit No.
<br />C-1994-082, DRMS Proposed Decision and Findings of Compliance, June 14, 2010
<br />Dear Ms. Pineda,
<br />This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD)
<br />receipt and review of the above Phase I Bond Release Proposed Decision document prepared by
<br />the Division of Reclamation, Mining and Safety (DRMS) dated June 14, 2010. DFD agrees with
<br />the findings and decision document and hereby provides OSM concurrence for the above bond
<br />release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section
<br />24, of the State-Federal Cooperative Agreement.
<br />DRMS's Proposed Decision documents the applicant's compliance with the Colorado approved
<br />regulatory program at Rule 3.03.2, and DRMS's bond release guidelines dated April, 18, 1995.
<br />Seneca Coal Company, LLC (SCC) originally requested that 515.8 acres be released. DRMS's
<br />proposed decision will release SCC from liability for backfilling, grading, and drainage
<br />reestablishment on 456.7 acres of the site. Specifically excluded from the Phase I bond release
<br />decision due to erosion and instability are 1.81 acres for the YPM-13 post mine drainage
<br />channel, 36.23 acres for YPM 6-2 and YPM-7 watershed areas, 14.77 acres for the YPM-8
<br />watershed area in the Neck Pit, 1.1 acres for the temporary Diversion 14-A which has yet to be
<br />reclaimed, and 3.18 and 1.97 acres for Topsoil Stockpiles B and C, respectively where both
<br />topsoil stockpiles have remaining topsoil in them and have not met AOC requirements. The
<br />Bureau of Land Management concurred with DRMS' proposed decision in a letter dated June 25,
<br />2010 (copy enclosed).
<br />OSM finds that SCC has met or exceeded the requirements for Phase I bond release on the 456.7
<br />acres of land as described above. DRMS currently holds a performance bond in the amount of
<br />$5,200,000.00 for the Yoast Mine. SCC requested a release of $1,365,265.00 and DRMS
<br />proposes to release $790,205.00. DRMS has detennined that the remaining bond amount of
<br />$4,305,484.00 ($790,205.00 less than the current liability of $5,095,689.00) is sufficient to
<br />assure completion of the remaining reclamation work at the site if the work had to be performed
<br />by a third party for DRMS, including the cost of topsoil redistribution and reestablishing
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