2008-04-02_GENERAL DOCUMENTS - C1981038

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The Division's second adequacy review letter, dated January 8, 2008, summarized the status of the adequacy issues and also contained the Division's calculation of the reclamation cost estimate. The new liability for Permit Renewal No. 5 was calculated to be $4,123,457.14. However, because of Partial Phase One Bond Release No. 3 (SL-3), only 60 % of the applicable reclamation bond could be released. The remaining amount, therefore, was statutorily set at $4,624,936.00. A third adequacy review letter from the Division, dated February 1, 2008, revised the reclamation cost estimate summary sheets to include a statement that explains this statutory limit. BRL agreed with the Division's reclamation cost estimate in a letter dated February 25, 2008. This document contains the "Proposed Decision to Approve the Permit Application", a description of the environment affected by the mining operation and the reclamation plan, and the Division's written findings of compliance as required by the Colorado Surface Coal Mining Reclamation Act. Detailed information concerning the review process is on file at the Division offices; legal requirements can be found in the Act and Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. All rules referenced in this document are contained within the Regulations. Detailed information about the proposed mining and reclamation operation can be found in the permit application on file (File No. C-81-038) in the public record maintained by the Division, located in Room 215, Centennial Building, 1313 Sherman Street, Denver, Colorado 80203, telephone (303) 866-3567. Copies of the application are also available for inspection at the Paonia Public Library in Paonia, Colorado and at the Delta County Clerk and Recorder's Office in Delta, Colorado. i Right! of Successive Renewal i C.R.S 34-33-109(7) and Regulation 2.08.5 allow an operator to permit any lands outside the five-year mine plan area with the right of successive permit renewal. BRL has exercised this right by submitting a complete permit renewal application package at least 180 days before the current permit expires. The permit area for the Bowie No. 1 Mine that was included in the application contains coal reserves projected to last to the year 2010. The Division originally granted CWI approval to mine all of these lands (subject to the; attached conditions). However, the permit term will be divided into five-year increments. At the end of each permit term, BRL needs only to apply for a permit renewal (along with responding adequately to any applicable stipulations or conditions). In determining whether to approve or deny a renewal, the burden shall be on the opponent of the renewal. Description of the Environment The Bowie No. 1 Mine is situated in the northeastern portion of Delta County, Colorado, and is located approximately four (4) miles north of Paonia, Colorado, along the Steven's Gulch Road. The western extremities of the Bowie No. 1 Mine permit area are bounded closely by the East and West Roatcap Creek drainage divide, and the northern boundary is located at approximately the Morrell Cow Camp area. The coal loadout facilities are located approximately one mile northeast of Paonia along State Highway No. 133. The general area of the mine is characterized by a semi-arid environment of steeply sloping mountains. Both the main mine portal facilities (East Mine) and the loadout were constructed in the 1970's, prior to the passage of the Colorado Surface Coal Mining and Reclamation Act (SMCRA). The West Mine facilities were built in late 1986 and early 1987. Land Use - Rules 2.04.3, 2.05.5, 4.16 The discussion of land use may be found in Volume 1 on pages 1 to 10 of Section 2.04.3 and pages 80 to 83 of Section 2.05.5. A land use appendix is located in Volume 9, along with Map No. 9-1, "Land Use Information Map." 10