2010-11-04_GENERAL DOCUMENTS - C1981041 (2)

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II. CRITERIA AND SCHEDULE FOR BOND RELEASE PHASE I The process of releasing the reclamation liability for a mine site is explained in Rule 3.03 and further described in the Division's 1995 Guideline Regarding Selected Coal Mine Bond Release Issues. Rule 3.03.1(2) (a) states, "Up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved reclamation plan." With regard to Phase I bond release, SCC applied for a partial Phase I bond release with SL-04. The Division's proposed decision to approve the Phase I bond release SL-04 was issued on January 26, 2009. The entire 14.8 acre area requested in the current Phase H and Phase III bond release application, SL-06, were included in the SL-04 Phase I bond release. PHASE II and III SCC's Bond Release Application submitted May 19, 2010 was a full bond liability release request (Phase II and III) of 14.8 reclaimed acres located within the permit boundary east of the Colorado River and Interstate-70 and is referred to as the South Portals. During operation of the mine, this area included the portal entries, coal conveyor, and shop/warehouse on the upper mine bench and the preparation plant facility, office, cafeteria, lab and parking lot on the lower portion of the site. Reclamation has been entirely completed at the South Portals. For Phase II bond release, Rule 3.03.1(2)(b) states, "Up to eighty-five percent of the applicable bond amount shall be released upon the establishment of vegetation which supports the approved postmining land use and which meets the approved success standard for cover... based on statistically valid data collected during a single year of the liability period". In regard to Phase II bond release, Rule 3.03.1(3) (b) also states, " No more than sixty (60) percent of the bond shall be released so long as the lands to which the release would be applicable are contributing suspended solids to streamflow or runoff outside the permit area in excess of premining levels as determined by baseline data or in excess of levels determined on adjacent nonmined areas". However, Rules 3.03.1(2) (b) and 3.03.2(3) (b) are not applicable here because the approved postmining land use of the bond release area is industrial/commercial. The appropriate revegetation success criteria for the South Portals area are given in Rule 4.15. 10 for areas to be developed for industrial use. Determination of revegetation success on reclaimed industrial/commercial postmine land use areas, not designated as "Active Areas" or "Steep Rock Face " as depicted on Exhibit 6C- A is based on qualitative assessment of "ground cover sufficient to control erosion". The non- active use areas have been revegetated and there is very little runoff from these reclaimed areas. The reclaimed areas will not contribute additional suspended solids above natural conditions to runoff or streamflow outside the permit area. Since the postmining land use is industrial and ground cover is deemed to be sufficient to control erosion in the non-active use areas, the Division did not require a sediment loss demonstration. Page 5