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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />Date: June 9, 2011 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />To: Sandy Brown John W. Hickenlooper <br />Governor <br />From: Joe Dudash Mike King <br />Executive Director <br />RE: Bear No. 3 M7 e, ermit No. C-1981-033, Bear Coal Company Loretta E. Plneda <br />Notification of Dissolution Director <br />On June 9, 2011, I received a telephone call from Erin Scott (303 692-3506) and Kelly Morgan (303 692-3634) <br />of the Colorado Department of Public Health and the Environment. Erin is in the Water Quality Control <br />Division's (WQCD) Discharge Permit Section and Kelly is with the WQCD's Enforcement Section. <br />Erin asked me if I knew that the Bear Coal Company (BCC) had filed Articles of Dissolution with the Colorado <br />Secretary of State's Office. I replied that I had not heard of that. <br />Erin explained that the WQCD had issued an enforcement order against BCC in 2007. As I recall, the <br />enforcement order involved BCC's cessation of NPDES sampling of the hillside spring water treatment pond. <br />Erin said that BCC is still in the penalty phase of the enforcement order and that the WQCD was in the process <br />of renewing the discharge permit for the Bear No. 3 Mine. <br />Erin commented that the discharge permit is still in effect until final bond release. She said that she knew that <br />there had been a recent bond release at Bear No. 3 and asked if it had been a final bond release. I answered that <br />it was only a partial phase one release. <br />She said that the WQCD Enforcement Section was going to turn the enforcement penalty over to Collections but <br />wanted to know what we were going to do. I said I would talk to you and let her know. <br />In an e-mail on June 9, 2011, Erin sent me a copy of the Articles of Dissolution. The entire e-mail is attached to <br />this memo. Please note that BCC notified the Secretary of State on April 4, 2011 and, then, notified the <br />WQCD's Enforcement Section on April 5, 2011. The WQCD's Enforcement Section notified the WQCD's <br />Discharge Permit Section on May 27, 2011. WQCD, then, notified the DRMS on June 9, 2011. <br />Also, please note that the Division made a proposed decision to approve the Partial Phase One Bond Release <br />(SL-4) on March 31, 2011. The proposed decision was published on April 6 and 13, 2011 and became final on <br />May 9, 2011. SL-4 reduced the bond by $148,833.00 down to $130,391.00. However, not all of the bond money <br />has been returned to BCC. According to Johanna, BCC got back their cash bond no. 5047 for $119,224.00 but <br />has not submitted a new bond of a lower amount to replace one of the two certificates of deposit for $60,000 and <br />$100,000.00. <br />Attachment <br />c:/word2007/bear3/dissolutiomnemo 1 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines