2011-06-14_REVISION - C1981019 (2)

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T F ti United States Department of the Interior PP ? OFFICE OF SURFACE MINING Reclamation and Enforcement s Western Region Office -suRFAO? a 1999 Broadway, Suite 3320 Denver, CO 80202-3050 June 9, 2011 O David Berry \ k TO1 avpxr, Division of Reclamation, Mining, and Safety eo2s e"N 1313 Sherman Street, Room 215 %-, and5a Denver, CO 80203-2273 RE: Colowyo Coal Mine (DBMS Permit No: C-1981-019) OSM Concurrence for Partial Approval of Phase I and Phase II Bond Release (SL-4) Dear Mr. Berry, This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) receipt and review of the above Phase I and II Bond Release Proposed Decision document prepared by the Division of Reclamation, Mining, and Safety dated May 2, 2011. The DFD agrees with the findings and decision document and hereby provides OSM concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State-Federal Cooperative Agreement. DRMS's Proposed Decision documents the applicant's compliance with the Colorado approved regulatory program at Rule 3.03 of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. The inspection for this bond release was conducted August 24-27, 2010. OSM was not able to participate in the bond release inspection. This Phase I (494.20 acres) and Phase II (432.70 acres) bond release request applies to areas located in the mine's East Pit, West Pit, and Section 16 Pit in Moffat County. DRSM proposes to grant Phase II bond release with the exception of 5.7 acres contained in reclamation block WP 101 and 6.1 acres contained in reclamation block EP041. These areas have high concentrations of annual brome cover and little to no perennial cover and therefore do not meet the requirements of Phase II bond release. This reduces the Phase II bond release acreage from 432.7 to 420.9 acres. OSM finds that Colowyo Mining Company has met or exceeded the requirements for Phase I and II bond release on the 915.1 acres of land as described above. DRMS currently holds a performance bond in the amount of $83,156,939.00. This action will release $2,585,974.00. DRMS has determined that the remaining bond amount of $80,570,965.00 is sufficient to complete all remaining reclamation obligations at this site if the work had to be completed by a third party contractor. OSM concurs with the proposed bond release amount.