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the Division summarized the results of the previous discussions and submitted a final reclamation cost
<br />estimate to BRL. This new reclamation cost estimate was $6,879,590.00, which was $839,443.00 lower
<br />than the reclamation cost estimate of $7,719,033.00 in the initial proposed decision for Permit Renewal
<br />No. 4. In a letter dated March 26, 2004 and received at the Division on March 29, 2004, BRL accepted
<br />the final reclamation cost estimate and withdrew its request for a formal hearing on the matter.
<br />Because the reclamation cost estimate was changed through this additional review, the Division proposed
<br />a second decision for Permit Renewal No. 4. Further, because the operator was able to resolve the
<br />outstanding issues in the Applicant Violator System (AVS) since the first proposed decision, the Division
<br />terminated the stipulation addressing the AVS issues.
<br />BRL requested a partial Phase One Bond Release (SL-2) in a submittal dated September 24, 2002. At the
<br />West Mine portal bench area, BRL requested bond release for complete structural demolition, mine portal
<br />sealing and backfilling and grading of the upper 16.4 acres of the area. At the West Mine fan area, BRL
<br />requested bond release for limited structural demolition work and for the sealing of the vent shaft. At the
<br />East Mine, BRL requested bond release for structural demolition at the facilities area, for portal sealing,
<br />for disposal of the coal waste at the temporary coal waste stockpile and for work done at the West Ridge
<br />waste pile, although this last request was eventually withdrawn. BRL also requested bond release for the
<br />removal of coal waste at the run-of-mine (ROM) stockpile. These reclamation activities were performed
<br />from November 2000 through May 2002. BRL also requested a bond reduction for the reclamation of the
<br />rock slope tunnels and two associated culverts at the East Mine which were never built.
<br />The Division conducted three field inspections for SL-2. They occurred on June 10, July 15 and August
<br />12, 2003. The Office of Surface Mining, the Bureau of Land Management and one surface owner
<br />attended the first field inspection. In BRL's original submittal, the operator requested that $1,200,000.00
<br />be released through surety release SL-02. However, not all of the reclamation tasks originally proposed
<br />by BRL for bond release were accepted by the Division. Items not accepted for bond release included
<br />reclamation of the West Ridge waste pile, disposal of the coal waste at the ROM stockpile and some
<br />demolition tasks. In addition, the size of the backfilled and graded area at the West Mine that was
<br />proposed for bond release was reduced from 16.4 acres down to 13.1 acres. After field inspections and an
<br />evaluation of the reclamation work that was performed and that which remained, the Division released a
<br />total of $1,143,807. At the East Mine, the Division released $434,803, which was 15 percent of the total
<br />reclamation liability for that area. The Division released $709,004 at the West Mine, which was 60
<br />percent of the total reclamation liability for that area.
<br />In a submittal dated June 26, 2007, BRL applied for a partial Phase One Bond Release (SL-3) for
<br />structural demolition and removal at the Bowie No. 1 unit train loadout. The project took place from
<br />September of 2006 to January of 2007. The public notice was published in the Delta County Independent
<br />for four consecutive weeks. With all necessary items submitted, the application was called complete on
<br />August 9, 2007, with completeness letters sent the same day to the appropriate governmental agencies and
<br />organizations.
<br />The bond release inspection was held on September 5, 2007. Although notified of the field inspection, the
<br />Office of Surface Mining (OSM) declined to attend. A copy of the bond release inspection report was sent
<br />to OSM. The Division calculated the reclamation cost estimate for the bond release and sent a copy to
<br />BRL in a letter dated January 8, 2008. In a response letter dated February 11, 2008, BRL accepted the
<br />cost estimate.
<br />The total cost of structural demolition at the Bowie No. 1 Mine Loadout was $2,688,882.00. There was,
<br />however, still some structural demolition work that had not yet been completed at the loadout. Based on
<br />the SL-3 application package and the Division's site inspection on September 5, 2007, the Division
<br />determined that the total amount of reclamation bond liability for the structural demolition that had been
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