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September 23, 2010 C- 1981 -041 /Roadside Portals MPB <br />Loadout, Railroad Spur, and portions of the Overland Conveyor be changed from a postmining land use of "Fish <br />and Wildlife Habitat" back to the original premine land use of "Industrial or Commercial ". Closing on the <br />purchase and sale agreement was subject to obtaining approval of PR -4 for the postmine land use change. <br />SCC contacted the Mesa County Department of Planning and Economic Development to obtain their comments on <br />the plan proposed with PR -4. Mesa County Department of Planning and Economic Development is the local <br />government agency that would have to approve the use of the land following reclamation and required Halliburton <br />to obtain a Conditional Use Permit. Subsequently, Halliburton on behalf of Snowcap Coal Company, Inc. <br />submitted an application for a Mesa County Conditional Use Permit to operate a sand storage facility at the Unit <br />Train Loadout site. In December 2008, Mesa County approved a Conditional Use Permit for the Halliburton - <br />Cameo Sand Storage Facility. In September 2009, following approval of PR -4 in February of 2009, Halliburton's <br />purchase of the property from SCC became final. Halliburton has completed the construction of the Cameo Sand <br />Storage Facility. <br />The primary focus of this inspection was a full bond liability release request (Phase I, II and III) of 75.2 reclaimed <br />acres located within an area referred to as the Unit Train Loadout and the Overland Conveyor corridor. The bond <br />release application included an exhibit "Bond Exhibit UTL — Industrial" which shows the 75.2 acres nominated for <br />bond release. This figure is included with this inspection report as Attachment 1. The bond release request area is <br />located between the U.S. Government Highline Canal and the Colorado River and lies north of I -9/10 Road. <br />Construction of the Unit Train Loadout Facility, Overland Conveyor Corridor, and Railroad Spur began in <br />approximately 1977. The coal loadout facility operated through 1999. Coal was transported from the preparation <br />plant located at the South Portal to the Unit Train loadout. A larger conveyor system was then used to load coal to <br />unit trains and the coal was shipped out via railroad. <br />In 1985, a permanent flood control dike was approved and constructed which replaced a sediment control berm <br />that had washed out in the Spring flooding of 1984. The structure (Permanent Flood Control Dike) was approved <br />as technical revision TR -02. The purpose of the dike was to protect the overland conveyor and the west end of the <br />Cameo bridge from future erosion. A Floodplain Development Permit was obtained from Mesa County and is in <br />the permit application package (see Figure 13 -4). <br />Reclamation has been completed at the Unit Train Loadout and Overland Conveyor Corridor areas in which the <br />bond release request applies. The reclamation work is summarized as follows: <br />In 2001, the Overland Conveyor structures were demolished and removed (including Transfer Buildings 3 and 4, <br />Conveyor Tubes, Linear Stacker, Linear Stacker Rail & concrete, conveyor concrete footers, and drive building). <br />In 2003, the Overland Conveyor Corridor was backfilled, regraded, and seeded. From 2008 -2009 the Loadout <br />facility structures were demolished and removed (including the Loadout building, coal feeders and 60 inch <br />conveyor belt structures, water tank, and fire suppression building). Final reclamation was completed in 2010 <br />which included coal fines removal, backfilling, regrading, and reseeding per the approved final contours. UTL <br />ponds 1 and 2 and the sewage lagoons were all reclaimed. Remaining coal and coal remnants were hauled to <br />SCC's refuse disposal area. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 15 <br />