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and was the subject of a Cease and Desist Order issued by the Colorado Mined Land Reclamation <br />Board (MLRB). The bond associated with Permit No. 77-3 was in the amount of $13,750. This <br />bond was forfeited in April of 1989 after a long series of enforcement actions, and was applied to the <br />reclamation of the Site. The entire $13,750 has now been utilized. There are no bond monies left to <br />either release or return to Arness-McGriffin Coal Company or any associated entities. <br />II. HISTORY OF THE ARNESS-MCGRIFFIN SITE <br />Permit and Operations <br />Permit No. 77-3 ug/c was issued to Arness-McGriffin Coal Company for the Coal Gulch Mine on <br />October 4,1977. This permit was issued in accordance with the Colorado Mined Land Reclamation <br />Act, which took effect on July 1, 1976. A reclamation bond in the amount of $13,750 was posted. <br />In June and July of 1979, the MLRB issued two Cease and Desist Orders to Arness-McGriffin Coal <br />Company. One was for conducting surface coal mining operations where only underground mining <br />activities were approved, and the other was for conducting mining operations outside of the approved <br />permit area. The disturbance situated outside the approved permit area that was the subject of the <br />second Cease and Desist Order has over the years become known informally as "Arness-McGriffin", <br />and is referred to herein as the Site. <br />Following the August 3, 1977 passage of the federal Surface Mining Control and Reclamation Act, <br />the State of Colorado received approval of its permanent Coal Program on December 15, 1980. On <br />February 17, 1981, Arness-McGriffin Coal Company submitted a permanent program application for <br />the Coal Gulch Mine as abatement for the two MLRB Cease and Desist Orders. The File number for <br />this permanent program application was C-1981-042. This application, however, was never deemed <br />Complete. On August 15, 1981, Permit No. 77-3 ug/c for the Coal Gulch Mine expired. The <br />$13,750 reclamation bond was left intact at that time. <br />On August 30, 1984, Peerless Resources Inc submitted another permanent program permit <br />application for the Coal Gulch Mine. The File number for this application was C-1984-067. This <br />application included the main surface disturbances created by Arness-McGriffin Coal Company <br />under Permit No. 77-3 ug/c that were situated within the topographically lower area of the Coal <br />Gulch Mine. The disturbance (the Site) created by Arness-McGriffin Coal Company, situated uphill <br />and to the east of the main area and the subject of one of the 1979 MLRB Cease and Desist Orders, <br />was not included in the Peerless Resources Inc permit application. Permit No. C-1984-067 for the <br />Coal Gulch Mine was issued on November 18, 1985 to Peerless Resources Inc, following posting of <br />a bond in the amount of $140,000. The unapproved disturbance created by Arness-McGriffin Coal <br />Company (the Site) remained unpermitted, though covered by the $13,750 bond that had been <br />submitted by Arness-McGriffin Coal Company for Permit No. 77-3 ug/c. <br />In 1987, the Division directed Sam Arness of Arness-McGriffin Coal Company to submit a plan for <br />reclaiming the unpermitted upper "Arness-McGriffin" disturbance (the Site). This plan was <br />submitted on February 16, 1988, and accepted by the Division on April 13, 1988. This plan stated <br />that the reclaimed area would be respread with substitute topsoil and revegetated to meet the <br />2