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September 1994, the Division released $497,226.00 in liability. SL-01 addressed backfilling and <br />grading work conducted over the entire permit area, with the exception of ponds and ditches. The <br />remaining liability was $152,774.00. <br />For Permit Renewal No. 3 (RN-03),. the Division re-calculated the Reclamation Cost Estimate and <br />determined that the amount of bond held was insufficient. Honeywood Coal Company increased <br />the amount of bond to $447,281.00 in March 2007. The current liability at the Hamilton Mine is <br />$439,432.00, as calculated with the 2009 Midterm Review (MT-04). <br />The Division currently holds a performance bond of $447,281.00. Pursuant to Rule 3.03.1(2)(b), <br />"up to eighty-five percent of the applicable bond amount shall be released upon the <br />establishment of vegetation which supports the approved postmining land use and which meets <br />the approved success standard for cover..." Therefore, the Division can release up to 85% of the <br />current liability ($439,432.00), which is $373,517.00. <br />Further, Rule 3.02.2(4), states that "(t)he amount of the performance bond required shall be <br />adjusted for good cause as affected land acreages are increased or decreased or when the cost of <br />future reclamation changes...", the Division can approve a bond reduction in the amount of <br />$7,849.00. This bond adjustment is based on the difference between the current bond held <br />($447,281.00) and the current liability as calculated with MT-04 ($439,432.00). <br />The combination of the Phase Il bond release amount ($373,517.00) and the bond reduction <br />amount ($7,849.00) result in a maximum releasable amount of $381,336.00 for SL-02. The <br />required liability following the approval of SL-2 is 15% of the current liability ($439,432.00), <br />which is $65,915.00. Based on the Division's calculation of the remaining reclamation costs <br />following the approval of SL-02 ($55,226.00), the Division can release $381,366.00. Although <br />the Division will hold more bond ($65,915.00) than the current calculated liability ($55,226.00), <br />this amount is required pursuant to Rule 3.03.1(2)(b). The following chart shows the current <br />bond held, the current liability and the maximum SL-02 releasable amount. <br />Current Bond Held $ 447,281.00 <br />Current Liability (2009 Midterm) $ 439,432.00 <br />Remaining Reclamation Cost Liability $ 55,226.00 <br />SL-02 Proposed Release (85% of Current Liability) $373,517.20 <br />Proposed Bond Reduction (Excess Bond) $7,849.00 <br />Applicant Requested Release Amount $30,000.00 <br /> <br />Statutory Bond Requirement (15%) $65,914.80 <br /> <br />Total Proposed for Release (Releasable + Reduction) $381,366.20 <br />The Division currently holds a performance bond of $447,281.00. Based on the observations above <br />and the findings made in this document, the Division proposes to release $381,366.00. <br />The remaining $65,915.00 is sufficient to assure completion of the remaining reclamation work at <br />the site if the work had to be performed by the Division, including the cost of reestablishing