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<br />United States Department of the Interior <br />0 <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />q age Western Region Office <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202-3050 <br />April 22, 2011 <br />David Berry <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80202 <br />OF& <br />RECEIVED <br />APR 2 a 2011 <br />Division UT Reclarnahon, <br />Mining and Safei <br />RE: Partial Phase I Bond Release (SL4), Bear No. 3 Mine <br />Permit No. C-1981-033, DBMS Proposed Decision and Findings of Compliance <br />Dear Mr. Berry, <br />This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) <br />receipt and review of the above Partial Phase I Bond Release Proposed Decision document <br />prepared by the Division of Reclamation, Mining and Safety (DRMS) dated March 31, 2011. <br />DFD agrees with the findings and decision document and hereby provides OSM concurrence for <br />the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, <br />Article IX, Section 24, of the State-Federal Cooperative Agreement. <br />DRMS's Proposed Decision documents the applicant's compliance with the Colorado approved <br />regulatory program at Rule 3.03.2, and DRMS's bond release guidelines dated April, 18, 1995. <br />This Partial Phase I bond release applies to structural removal and backfilling and grading over <br />7.5 acres of the total disturbed area of 9.0 acres and drainage control according to the approved <br />reclamation plan. A post mining land uses of "undeveloped land and limited residential use" are <br />the same as the pre mining land uses for this area. <br />OSM finds that the Bear Coal Company (BCC) has met or exceeded the requirements for Phase I <br />bond release on the 7.5 acres of land as described above. DRMS currently holds three _ Y --~ <br />reclamation bonds (a cash bond and two Certificates of Deposit) in the amount of $279,224.00. <br />Of this amount, BCC is requesting a release of up to $167,000.00. This action will release <br />$148,833.00, which is less than the maximum sixty percent of the applicable bond liability, or <br />$167,534.40. The reason for this difference is that BCC has not requested a Phase I bond release <br />for the entire site, and DRMS calculated that the reclamation tasks that remain would cost <br />$130,391.00 fbr a third parry to complete. OSivi concurs with the proposed bond release aalo it.