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United States Department of the Interior <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />Western Region Office <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202-3050 <br />OF& <br />a WWO <br />June 9, 2011 O <br />ma,?r. <br />David Berry <br />Division of Reclamation, Mining, and Safety ofe?sate'? <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203-2273 N`?r?rg <br />=RE: Colowyo Coal Mine (DBMS Permit No: 0=1981-019) <br />OSM Concurrence for Partial Approval of Phase I and Phase II Bond Release (SL4) <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 Phase I and H Bond Release Proposed Decision document <br />prepared by the Division of Reclamation, Mining, and Safety dated May 2, 2011. The DFD <br />agrees with the findings and decision document and hereby provides OSM concurrence for the <br />above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article <br />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 of the Regulations of the Colorado Mined Land Reclamation <br />Board for Coal Mining. <br />The inspection for this bond release was conducted August 24-27,2010. OSM was not able to <br />participate in the bond release inspection. <br />This Phase I (494.20 acres) and Phase II (432.70 acres) bond release request applies to areas <br />located in the mine's East Pit, West Pit, and Section 16 Pit in Moffat County. DRSM proposes <br />to grant Phase II bond release with the exception of 5.7 acres contained in reclamation block <br />WP101 and 6.1 acres contained in reclamation block EP041. These areas have high <br />concentrations of annual brome cover and little to no perennial cover and therefore do not meet <br />the requirements of Phase II bond release. This reduces the Phase II bond release acreage from <br />432.7 to 420.9 acres. <br />OSM finds that Colowyo Mining Company has met or exceeded the requirements for Phase I <br />and II bond release on the 915.1 acres of land as described above. DRMS currently holds a <br />performance bond in the amount of $83,156,939.00. This action will release $2,585,974.00. <br />DRMS has determined that the remaining bond amount of $80,570,965.00 is sufficient to <br />complete all remaining reclamation obligations at this site if the work had to be completed by a <br />third party contractor. OSM concurs with the proposed bond release amount.