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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />CEC applied for a Phase III bond release under the Colorado Surface Coal Mining and Reclamation Act <br />following reclamation of the Keenesburg Strip Mine. The mine is located in Weld County in all or <br />portions of Sections 2 and 11 in Township 2 North, Range 64 West as well as in Sections 25 and 36 in <br />Township 3 North, Range 64 West (6th Principal Meridian). <br />CEC has previously requested and been approved for five bond releases. Bond release SL -01 was <br />approved on August 11, 1998 for Phase I on 179 acres and Phase II on 111 acres. Bond release SL1 <br />released $1,787,113.00 of the reclamation liability. <br />A second bond release, SL -02, was approved August 31, 2005. Bond release SL2 approved Phase I <br />release on 51.76 acres. The Division approved $287,918.00 for release from the reclamation liability for <br />ten reclamation parcels included in the request. <br />A third bond release application, SL -03, was approved on April 18, 2006. Bond release SL3 was a Phase <br />II bond release 53.90 acres. The Division approved the release of $130,189.80 of the reclamation <br />liability for Phase II bond release on ten reclamation parcels. <br />A fourth bond release application, SL -04, was approved on January 8, 2010. Bond release SL4 was a <br />Phase III bond release of 165.29 acres. The Division approved the release of $167,911.00 of the <br />reclamation liability for bond release on 17 reclamation parcels. <br />A fifth bond release application, SL -05, was approved on September 10, 2010. Bond release SL -05 was <br />a Phase II bond release of 51.05 acres. The Division approved the release of $120,385.00 of the <br />reclamation liability for bond release on 11 reclamation parcels. <br />An application for Phase III bond release, SL -06, was received by the Division on March 3, 2011. The <br />application was deemed complete on March 25, 2011, after the Division received proof of publication of <br />the applicant's public notice. CEC published notice of the bond release application in the Fort Lupton <br />Press once weekly for four consecutive weeks, beginning February 23, 2011. CEC also notified land <br />owners within and adjacent to the mine permit area and other interested parties of the application for <br />bond release, as required by Rule 3.03.2(1). Bond release SL -06 will potentially release 42.29 acres. <br />The Division proposes the release of $44,735.78 of the reclamation liability for bond release on the nine <br />reclamation parcels (see discussion below). <br />No comments, written objections, or requests for an informal conference regarding the bond release <br />application were received by the Division. <br />The Division scheduled and conducted a bond release inspection on April 21, 2011. The site inspection <br />was conducted in accordance with Rule 3.03.2(2). The inspection was attended by the following: Don <br />MacDonald and Danny Kipp, representing CEC; Robert Zuber and Janet Binns of the Division: and <br />Mike Savage of Savage and Savage Inc., a CEC consultant. <br />Page 2 <br />