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<br />that meets the approved success standard for cover and supports the approved postmining land uses.
<br />With the exception of reclaiming three monitoring wells, no additional reclamation work remains on
<br />the site. Based on the discussion, above, however, the Division finds the approved postmining land
<br />uses of industrial, commercial, residential, and recreation have not substantially commenced in the
<br />45.31-acre bond release area.
<br />Calculation of Bond Release Amount
<br />An estimate of reclamation costs for the Carbon Junction Mine, dated August 6, 2008, was prepared
<br />during the review of permit renewal RN-03 (approved 8/11/08), and is contained in Appendix 5-7 of
<br />the permit application. Although the Division is in the process of updating the reclamation cost
<br />estimate for the Carbon Junction Mine in a midterm permit review, the RN-03 cost estimate remains
<br />the applicable estimate until the updated midterm review estimate is incorporated into the permit
<br />application via a revision. The RN-03 estimate shows direct costs of $558,078 are applicable to the
<br />bond release area, before deducting for prior bond releases and SL-04 (see attached summary sheet).
<br />After accounting for previous releases, the amount of bond liability for direct and indirect costs is
<br />$405,834.
<br />Bond associated with fertilizer costs is removed from the estimate, based on fertilizer not being used
<br />during reclamation, as allowed in the approved reclamation plan. Bond must be retained for the only
<br />reclamation tasks not yet completed on the site: the sealing and reclamation of monitoring wells 17-
<br />1, 94-1, and 95-1 (Task 053). This amount is $4,294. Bond in the amount of $3,358 for ten years of
<br />maintenance (Tasks 50 and 51) remains in the cost estimate, although these tasks are eligible for
<br />removal from the estimate in the midterm review update based on their not being applicable to the
<br />short-term liability period of industrial, commercial, or residential postmining land uses. All other
<br />completed reclamation tasks are subject to the 85% Phase II limit of Section 3.03.1(2)(b). Applying
<br />the 85% Phase II limit to those tasks eligible for Phases II release, and including all of the estimated
<br />costs for well reclamation and long-term maintenance, produces a total estimate of $112,165for
<br />direct and indirect costs remaining after SL-04. Thus, $293,669 is eligible for release in SL-04,
<br />calculated as $405,834 of existing liability, minus $112,165 of remaining liability.
<br />V. PROPOSED DECISION
<br />Based on the findings set forth above, the Division proposes to approve Oakridge's request for
<br />Phases I and II bond release in the bond release area, and deny Oakridge's request for Phase III bond
<br />release. The amount proposed for release is $293,669 of bond liability. This proposed decision will
<br />release Oakridge from liability for the Phases I and II reclamation activities of backfilling, grading,
<br />topsoil replacement, and vegetative cover in the following areas: topsoil stockpiles #4, #7, and #8;
<br />Ponds 1 and 2, the East Collection Ditch, the collection ditch located on the east side of the former
<br />Equipment Storage Area, and equipment removal from the former Equipment Storage Area. This
<br />proposed decision will also release Oakridge from liability for Phase II liability for topsoil
<br />replacement and establishment of vegetation cover in the following areas: North Pit; North Pit Haul
<br />Road; the Previously Reclaimed Spoils Area; the South Pit Drill Pad; the Equipment Yard; Topsoil
<br />Stockpile #2; and the reconstructed Carbon Junction Canyon channel. With the exception of the
<br />remaining reclamation liability for three monitoring wells (wells 17-1, 94-1, and 95-1), the only
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