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III. OBSERVATIONS AND FINDINGS <br />On September 23, 2010 a bond release inspection was conducted at the Roadside Portals Mine <br />pursuant to SCC's Bond Release Application submitted July 6, 2010. This was a full Phase I, II <br />and III bond release inspection of the Unit Train Loadout Facility, Permanent Flood Control <br />Dike, and portions of the Railroad Spur and Overland Conveyor. These areas requested for bond <br />release comprise approximately 75.2 acres and have a designation of Industrial as the post <br />mining land use. Mike Boulay and Sandy Brown of the Division of Reclamation, Mining and <br />Safety conducted the bond release inspection. Ms. Tonya Hammond of Snowcap Coal <br />Company, Inc. (SCC), Howard Strand of the Office of Surface Mining Reclamation and <br />Enforcement, Jim Stover of J.E. Stover & Associates, Inc., and Dave Kasnoff of FCI <br />Constructors, Inc. accompanied the Division for the entire inspection. Mark Preuss and Gabe <br />Connor of FCI Constructors and Robert Gutierrez and Mike Hall of Union Pacific Railroad <br />attended a portion of the inspection. Halliburton Energy Services, Inc (Halliburton) is the sole <br />land owner of record and they were notified of the inspection via certified mail. Halliburton did <br />not attend the inspection; however, they were represented on -site by Dave Kasnoff of FCI <br />Constructors, Inc. FCI Constructors was Halliburton's primary contractor during the <br />construction of the Cameo Sand Storage Facility that was built for the industrial post mine land <br />use at the former UTL site. Weather conditions were clear and cool. The entire bond release <br />area was accessible. Site inspection photographs are provided at the end of this Findings <br />document in Attachment 2. Aerial photographs were also taken by the Division on the same day <br />as the site inspection and are included as Photograph Numbers 1 through 4. <br />Since the approved post mining 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 to control <br />erosion in non - active use areas. The UTL and portions of the Overland Conveyor and Rail Spur <br />for which bond release is sought are within an area where the pre - mining land use was industrial <br />or commercial and the approved post- mining land use is industrial /commercial. Thus in <br />accordance with 4.15.10(3) the vegetation requirement of 4.15.10(2) may be waived if requested <br />in writing by the landowner and if the Division determines that revegetation is not necessary to <br />control erosion. In SCC's bond release application, they included such request in a letter from <br />Halliburton to the Division dated June 22, 2010. Halliburton requested that the vegetation <br />requirements of Rule 4.15.10(2) be waived on those properties owned by Halliburton, as <br />described above, due to ongoing construction projects. Future vegetation and weed management <br />issues will be regulated by Mesa County under the current Conditional Use Permit 42008 -268 <br />CUP 1. <br />We began the inspection on the morning of September 23rd by orienting the participants to the <br />areas proposed for bond release with a map and providing some historical information regarding <br />the mining operation itself. During the inspection, participants walked through the entire <br />reclaimed UTL area, Overland Conveyor corridor, Rail Spur and viewed the Permanent Flood <br />Control Dike to allow for visual assessment of compliance with the pertinent requirements <br />described above. All bond release request areas were inspected for completion of all reclamation <br />obligations, and functioning of the reclaimed land to serve the post - mining land use. The <br />Page 10 <br />