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Midterm Review <br />Sanborn Creek and Elk Creek Mines <br />(C -1981 -022) <br />This document presents the results of the Midterm Review of Oxbow Mining LLC's (OMLLC's) <br />Sanborn Creek and Elk Creek Mines, conducted by the Colorado Division of Reclamation, <br />Mining, and Safety (Division). This Midterm Review was conducted to fulfill the requirements <br />of the Colorado Surface Coal Mining Reclamation Act, and Rules 2.08.3, 2.06.2(10), 2.06.3(4), <br />2.06.5(2), 2.06.7(5) and 3.02.2(4) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining. <br />Rule 2.08.3 requires the Division to conduct a review of each permit issued, prior to its midterm <br />(2 %Z years). Based on this review, for good cause shown, the Division may require reasonable <br />revisions to, or modifications of, the permits provisions to ensure compliance with the Act and <br />Regulations. <br />Rules 2.06.2, 2.06.3, 2.06.5 and 2.06.7 require that during the Midterm Review, where <br />applicable, experimental practices, mountaintop removal variances, variances from approximate <br />original contour (AOC), and variances from contemporaneous reclamation, respectively, be <br />reviewed by the Division. <br />Rule 3.02.2(4) requires the Division to review the amount of performance bond liability and the <br />terms of acceptance of the bond every 2 %Z years. <br />This Midterm Review consists of a review of the Sanborn Creek and Elk Creek Mines permit <br />application and the Division's Findings Document for the 2009 Permit Renewal No. 5. The <br />Division also reviewed all subsequent revisions and stipulation responses to ensure that all <br />permit commitments and conditions were being followed. Problems and observations from past <br />inspection reports were also considered during this review. <br />SECTION I — HISTORY <br />The Sanborn Creek and Elk Creek Mines, operated by Oxbow Mining, LLC are located in Delta <br />and Gunnison Counties, and are adjacent to the town of Somerset on Colorado State Highway <br />133. <br />The original permit under the Colorado Permanent Regulatory Program was issued to U.S. Steel <br />Mining Company, Inc. on 11 October 1983. Kaiser Coal Corporation acted as operator on the <br />property from 1986 to 1990. In 1990, their permit was transferred to Somerset Mining Company <br />and Somerset completed the permit renewal for another five -year permit term. That permit <br />period initiated 11 October 1988 and expired 11 October 1993. <br />Upon finalization of the purchase of the mine and transfer and renewal of the permit, Somerset <br />Mining Company proposed opening a new set of mine portals, named the Sanborn Creek Mine, <br />Sanborn Creek and Elk Creek Mine -2- July 7, 2011 <br />