1993-11-26_GENERAL DOCUMENTS - C1981025

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PROCEDURE FOR SEEKING BOND RELEASE AND SUMMARY OF THE REVIEW PROCESS This document presents the results of the Division's review of MINREC's request for Phase II Bond Release for the North Thompson Creek Mines. MINREC has applied for bond release under Rule 3.03.1(2) and 3.03.1(31 of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. The company submitted a request for Phase II Bond Release on July 19, 1993. The public notice was published for four weeks in the G/enwood Post between August 11, 1993 and September 1, 1993. The affidavit of publication was received by the Division on September 13, 1993, in conjunction with certified mail receipts from notification of the landowners and appropriate governmental entities, per Rule 3.03.2(1). The Division performed the bond release inspection on October 6, 1993. Landowners had been notified on September 23, 1993 of the pending inspection. One representative of MINREC, one OSM inspector and two representatives of a landowner attended the inspec- tion. No written comment was received from the other landowners. II. BOND HISTORY OF THE NORTH THOMPSON CREEK MINES This section outlines the bond history of the North Thompson Creek Mines. A. The total bond amount in November 1987 was 5804,300.00, which in- cluded 5527,500.00 for the mine site, 5231,800.00 for the loadout site, and 545,000.00 for prime farmland reclamation. B. In June 1988, an additional 544,300.00 was added to the bond for reclama- tion of the area disturbed in May 1988 to control the No. 1 Mine seepage. This brought the total bond amount for the North Thompson Creek Mines up to (5804,300.00 + 544,300.00 =) 5848,600.00. C. A Phase I bond release was approved in 1988 for the mine site and the unit train loadout, not for the prime farmland or for the portal area which was re- disturbed in May 1988. Therefore, the remaining bond amount is equal to 40% of the bond for the mine site (5211,000.00), plus 40% of the bond for the unit train loadout 1592,720.00), plus 100°,6 of the bond for the prime farmland (545,000.00), plus 100% of the bond for the area disturbed in May 1988 (544,300.00), or a total of 5393,020.00, or approximately 5393,000.00. D. The operator's current bond release request proposed to reduce the bond for the mine site and the unit train loadout to 15% of the applicable amounts and the bond for the prime farmland (located at the loadout) and the area re- disturbed during May 1988 to zero. The resulting bond, if the operator's proposal were to be approved, would be 5113,895.00, or approximately S 115,000.00.