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application predicts that no "appreciable effect on the hydrologic balance of the area is anticipated as a <br />result of the mining and/or reclamation operations." (page 125) Furthermore, due to topographical and <br />geological conditions on the site, namely flat slopes and sandy soil, there is little surface water runoff <br />and very little probability of impact to surface water resources from the Keenesburg Strip Mine. <br />CEC submits a surface and groundwater report to the Division annually. In previous reports, including <br />reviews of the annual hydrology reports as well as previous bond release reviews, the Division has <br />concluded that the areas under consideration for bond release are not contributing suspended solids to <br />streamflow or runoff outside the permit area in excess of pre- mining conditions. Furthermore, Sediment <br />Pond #2 and the Dugout Pond at the Keenesburg Strip Mine have not discharged in many years. <br />Division assessments and monitoring data support the prediction of no impacts to groundwater. In a <br />2005 analysis of subsurface hydrology at and near the Keenesburg Strip Mine, the Division concluded <br />that the mine does not have the potential to negatively impact groundwater and has not required <br />establishment of a groundwater point of compliance (Memorandum to 2004 AHR file, dated July 6, <br />2005). If spoil leachate or ash leachate migrated from the pit through eolian sand, Ennis alluvium, or <br />the Laramie sandstone, attenuation and dispersion would cause levels of total dissolved solids (TDS) <br />and sodium adsorption ratio (SAR) in groundwater to be near pre- mining conditions within a few <br />hundred feet of the Keenesburg Strip Mine pits. Monitoring of groundwater quality in wells down - <br />gradient from the reclaimed pits has indicated that the 2008 TDS values were well below the pre - <br />mining levels. <br />Based upon this information, the Division finds that pollution of surface water and subsurface water <br />is not occurring and the probability of such pollution occurring in the future is low. <br />Summary and Conclusions <br />Based upon a review of the mine permit, the applicant's bond release application, and site inspections, <br />the Division finds that CEC has successfully completed all surface coal mining reclamation operations <br />in accordance with the approved reclamation plan and met all requirements of the Act and the Rules. <br />IV. PROPOSED DECISION <br />Based on the observations above, the Division proposes to approve CEC's request for a Phase III bond <br />release for the Keenesburg Strip Mine. This proposed decision will release the applicant from liability <br />for all reclamation work on the nine applicable parcels (parcels 2, 5, 6, 7, 9, 10, 15, 16, and 19) totaling <br />42.29 acres. <br />The Division currently holds a financial warranty in the amount of $2,001,475.00. During review of the <br />RN -06 application, the Division recalculated the financial liability amount to $1,913,161.94. The <br />actual financial warranty amount held was never reduced to the calculated liability amount. In SL -06, <br />Page 8 <br />