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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 />April 21, 2009
<br />To: Joe Dudash
<br />From: Susan.Burgmaier 534
<br />Office of
<br />Mined Land Reclamation
<br />STATE OF COLORADO
<br />COLORADO
<br />D I V I S I O N O F
<br />RECLAMATION
<br />MINING
<br />— &—
<br />SAFETY
<br />Bill Ritter, Jr.
<br />Governor
<br />Harris D. Sherman
<br />Executive Director
<br />Ronald W. Cattany
<br />Division Director
<br />Natural Resource Trustee
<br />Re: Bear No. 3 Mine, Permit No. C- 1981 -033, Bear Coal Company
<br />SL -4, Partial Phase One Bond Release, Preliminary Submittal Adequacy Review
<br />Per your request, I have reviewed Bear Coal Company's preliminary bond release request document. Assuming
<br />Bear Coal Company has completed the reclamation tasks they for which they are requesting release, and
<br />assuming the completed reclamation is in accordance with the approved plan, I estimate that the Division could
<br />reduce the liability by a maximum of $158,941.00. The operator has not requested Phase I release on the entire
<br />disturbance area, so the proposed release amount is less than the maximum release allowable by Rule
<br />3.03.1(2)(a). I estimate that the revised required bond amount would be $120,283.00. Again, this estimate is
<br />made under the assumption that reclamation has been completed as reported by the operator.
<br />In accordance with Rule 3.03.1(2)(a), up to sixty percent of the applicable bond shall be released when the
<br />permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved
<br />reclamation plan; up to eighty five percent shall be released upon the establishment of vegetation which
<br />supports the postmining land use and meets the approved revegetation success standards (Rule 3.03.1(2)(b));
<br />and the remaining reclamation bond may be released at the end of the revegetation responsibility period and
<br />when the permittee has successfully completed reclamation operations in accordance with the approved
<br />reclamation plan (Rule 3.03.1(2)(c)). For the Bear Mine, the reclamation liability for the entire site was
<br />estimated in 2007 to be $279,224.00. Based on this original liability figure, maximum release amounts by rule
<br />are shown on the table below.
<br />Bear Coal Company's preliminary document indicates that they will not be requesting Phase I bond release on
<br />the entire area, and it is also apparent that they are requesting a release that is greater than that allowed by
<br />Rule 3.03.1(2)(a) (up to $167,534.40), were all of the reclamation eligible for Phase I release.
<br />Office of
<br />Denver • Grand Junction • Durango Active and Inactive Mines
<br />Maximum Release
<br />Minimum Retention
<br />Initial Liability
<br />$279,224.00
<br />Phase I
<br />$167,534.40
<br />$111,689.60
<br />Phase II
<br />$69,806.00
<br />$41,883.60
<br />Phase III
<br />$41,883.60
<br />$0.00
<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 />April 21, 2009
<br />To: Joe Dudash
<br />From: Susan.Burgmaier 534
<br />Office of
<br />Mined Land Reclamation
<br />STATE OF COLORADO
<br />COLORADO
<br />D I V I S I O N O F
<br />RECLAMATION
<br />MINING
<br />— &—
<br />SAFETY
<br />Bill Ritter, Jr.
<br />Governor
<br />Harris D. Sherman
<br />Executive Director
<br />Ronald W. Cattany
<br />Division Director
<br />Natural Resource Trustee
<br />Re: Bear No. 3 Mine, Permit No. C- 1981 -033, Bear Coal Company
<br />SL -4, Partial Phase One Bond Release, Preliminary Submittal Adequacy Review
<br />Per your request, I have reviewed Bear Coal Company's preliminary bond release request document. Assuming
<br />Bear Coal Company has completed the reclamation tasks they for which they are requesting release, and
<br />assuming the completed reclamation is in accordance with the approved plan, I estimate that the Division could
<br />reduce the liability by a maximum of $158,941.00. The operator has not requested Phase I release on the entire
<br />disturbance area, so the proposed release amount is less than the maximum release allowable by Rule
<br />3.03.1(2)(a). I estimate that the revised required bond amount would be $120,283.00. Again, this estimate is
<br />made under the assumption that reclamation has been completed as reported by the operator.
<br />In accordance with Rule 3.03.1(2)(a), up to sixty percent of the applicable bond shall be released when the
<br />permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved
<br />reclamation plan; up to eighty five percent shall be released upon the establishment of vegetation which
<br />supports the postmining land use and meets the approved revegetation success standards (Rule 3.03.1(2)(b));
<br />and the remaining reclamation bond may be released at the end of the revegetation responsibility period and
<br />when the permittee has successfully completed reclamation operations in accordance with the approved
<br />reclamation plan (Rule 3.03.1(2)(c)). For the Bear Mine, the reclamation liability for the entire site was
<br />estimated in 2007 to be $279,224.00. Based on this original liability figure, maximum release amounts by rule
<br />are shown on the table below.
<br />Bear Coal Company's preliminary document indicates that they will not be requesting Phase I bond release on
<br />the entire area, and it is also apparent that they are requesting a release that is greater than that allowed by
<br />Rule 3.03.1(2)(a) (up to $167,534.40), were all of the reclamation eligible for Phase I release.
<br />Office of
<br />Denver • Grand Junction • Durango Active and Inactive Mines
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