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Hernandez, Daniel <br />From: Hernandez, Daniel <br />Sent: Thursday, September 30, 2010 3:16 PM <br />To: 'savageandsavage@earthlink.net' <br />Cc: Kaldenbach, Tom <br />Subject: Carbon Junction SL4 Bond Release Application <br />Hello Mike and Edith - <br />This is a follow-up to a voice-mail message we received yesterday. I'm sorry I was unable to reply to your message <br />yesterday as requested - I was busy preparing for a meeting that occurred this morning. <br />First, allow me to express my condolences to the two of you regarding the passing of Mike's Dad. I am sorry to hear of <br />this, and am thinking of you both at this time. <br />Second, with regard to Oakridge Energy Inc's Phase III bond release application SL4 for the Carbon Junction Mine, the <br />Division considered the January 25, 2010 Letter of Intent between La Plata County's Board of County Commissioners and <br />Oakridge Energy Inc regarding some potential roads that may be built in part within the permit area of the Carbon <br />Junction Mine at some time in the future. Oakridge Energy Inc submitted this Letter of Intent as a demonstration that <br />the approved post-mining land use of "Residential" (Section 1.04(71)(e) of the Regulations of the Colorado Mined Land <br />Reclamation Board of Coal Mining) had been achieved. Unfortunately, as this Letter of Intent is not a guarantee that <br />these roads will be actually be built, we cannot release the area subject to Bond Release Application SL4 based upon this <br />Letter of Intent. <br />The Division is therefore not in a position to be able to approve Oakridge Energy Inc's Phase III Bond Release Application <br />SL4 for the Carbon Junction Mine. The Division believes that Oakridge Energy Inc has not demonstrated that the <br />approved post-mining land use of "Residential" has substantially commenced and is likely to be achieved, as required by <br />Section 3.02.3(2)(c) of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. <br />For Oakridge Energy Inc to demonstrate that the post-mining land use of Residential has substantially commenced and is <br />likely to be achieved, the Division believes that of the nine 35-acre parcels within which the subject bond release <br />disturbed area is situated, Oakridge Energy Inc should demonstrate for five of those nine parcels that: <br />• Permits for building "single- or multiple-family housing, mobile home parks, or other residential lodgings" <br />(Section 1.04(71)(e) of the Board's Regulations) have been obtained from the La Plata County Building <br />Department; and <br />• Concrete foundations for residential lodgings have been poured. <br />As Oakridge Energy Inc has not yet complied with these items, and as the Division believes it could be quite some time <br />before Oakridge Energy Inc may be able to do so, the Division proposes two possible courses of action for Oakridge <br />Energy Inc's consideration: <br />1. Oakridge Energy Inc submits a letter to the Division by Monday November 1, 2010 requesting Withdrawal of the <br />SL4 Bond Release Application (this would allow Oakridge Energy Inc an opportunity to comply with the above <br />items, then re-apply in the future for a Phase III bond release as Bond Release Application Number SL5); <br />or <br />2. Oakridge Energy Inc submits a letter to the Division by Monday November 1, 2010 requesting Partial Approval of <br />the SL4 Bond Release Application in the form of a site-wide Phase 11 Bond Release (this too would allow Oakridge