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III. OBSERVATIONS AND FINDINGS <br />On July 27, 2010 a Phase II and III bond release inspection was conducted pursuant to SCC's <br />Bond Release Application (SL-6) submitted May 19, 2010. The bond release request area is <br />located at the "South Portals" east of the Colorado River at the Interstate 70, Cameo Exit No. 46. <br />During the Phase II and III bond release inspection, participants walked through the entire 14.8 <br />acres requested for full bond liability release at the South Portal to allow for visual assessment of <br />compliance with the pertinent requirements described below. Mike Boulay of the Division of <br />Reclamation, :Mining and Safety (Division) conducted the bond release inspection. Ms. <br />Elizabeth Shaeffer of the Office of Surface Mining Reclamation and Enforcement, Western <br />Region, Mr. Brant Harrison landowner, Ms. Tonya Hammond of Snowcap Coal Company, Inc. <br />(SCC), and Mr.. Jim Stover of J.E. Stover & Associates, Inc. accompanied the Division for the <br />entire inspection. None of the other land owners of record (including Colorado Department of <br />Transportation and Rudy & Ethel Fontanari) attended the inspection; however, all land owners <br />were notified of the inspection via certified mail. Weather conditions were clear and warm and <br />ground conditions were dry. The entire bond release request area was accessible during the <br />inspection. <br />Since the approved postmining land use of the release area is industrial/commercial the <br />applicable bond release criteria were evaluated pursuant to the requirements of Rule 4.15.10. <br />The primary criteria for this bond release are 1) Establishment of an industrial use of the site and <br />evidence that the industrial use is being implemented, and 2) Adequate revegetation in non-active <br />use areas to control erosion. The South Portal is within an area where the pre-mining land use <br />was industrial or commercial and the approved post-mining land use is industrial/commercial. <br />Thus in accordance with 4.15.10(3) the vegetation requirement of 4.15.10(2) may be waived if <br />requested in writing by the landowner and if the Division determines that revegetation is not <br />necessary to control erosion. Although the premining and postmining land uses were both <br />industrial, the landowner(s) did not request that the vegetation requirement be waived. All <br />appropriate areas not being actively used by the postmine operation were successfully <br />revegetated sufficient to control erosion. The Division qualitatively evaluated the revegetation <br />success in non-active use areas as described in greater detail below. <br />Permit Revision No. 3 (PR-3) was approved in July 2007 to change the postmining land use of <br />portions of the South Portal facilities area to an alternative, commercial postmining land use. <br />With PR-3 the Division requested that SCC provide amended text for inclusion in the <br />Revegetation Success Methods/Success Criteria section of the permit application package (PAP), <br />clarifying that the quantitative success demonstration methods and criteria apply solely to the <br />Fish and Wildlife Habitat postmine land use areas. Further, success of revegetation on reclaimed <br />Industrial/Commercial postmine land use areas would be based on qualitative assessment of <br />"ground cover sufficient to control erosion", pursuant to Rule 4.15.10(2), on alternative land use <br />areas not designated as "Active Areas" or "Steep Rock Face". The PAP was appropriately <br />amended with PR-3, see Exhibit 6C-A, and page 14-23 of the PAP for location and discussion of <br />these areas. A subjective evaluation of "ground cover sufficient to control erosion" in all non- <br />active use areas was conducted by the Division during subsequent site inspections. <br />Page 7