2012-02-02_REVISION - C1992081 (4)

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Hayden Gulch Terminal LLC Hayden Gulch Loadout SL -1 - Phase I Bond Release Request IV. PERMIT NUMBER AND RECLAMATION BONDS Permit #: C- 1992 -081 Issued: April 22, 1993 Renewals: RN -1 May 29, 1998 RN -2 May 19, 2003 RN -3 December 3, 2008 The Division's current calculated reclamation liability is $1,557,769.56 (as of 9/16/11). V. PHASE I BOND RELEASE DOCUMENTATION January 2012 BACKGROUND Pursuant to Rule 3.03.1, a permittee may request Phase I Bond release upon successful completion of backfilling, regrading and re- establishment of drainage control in accordance with the approved reclamation plan. The approved reclamation plan can be reviewed in its entirety in the Hayden Gulch Loadout Permit Application Package (PAP) located in the Hayden Public Library, Hayden, Colorado or the Colorado Division of Reclamation, Mining and Safety, 1313 Sherman Street, Denver, Colorado. Construction of the loadout and rail loop began in 1978 and coal was shipped to market from the facility into early 1987. Coal was again stored at the Loadout beginning late in 1992, this coal was subsequently removed and no coal has been stored onsite since. TR -5, approved July 24, 2000, allowed for using the Loadout site to offload coal from incoming rail cars. TR -6, approved June 15, 2005, provided more detail for the "load -in" operations. The "load -in" facilities were never constructed, but have been included in the reclamation bond estimate. These un -built facilities are also included in this bond release application. Phase I release will apply only to those areas where backfilling and grading are complete. Backfilling and grading are considered completed upon the achievement of final post -mine topography in accordance with the permit, including establishment of the approved permanent drainage system. The Phase I reclamation activities have resulted in a stable landform in compliance with the approved conditions in the CDRMS Permit No. C- 1992 -081. SL -1 AREAS REQUESTED FOR RELEASE The following discussion presents and describes the areas requested for SL -1 Phase I bond release. This request uses the HGL surveyed acreage as the basis for the requested release. The acreage requested for release consists of 11.9 acres. This acreage contained loadout structures that were constructed for the original loadout operations. In addition there are structures never constructed that have an associated demolition/removal cost that are also included in this bond release request. The overall area requested is presented on Exhibit A, SL -1 Phase I Bond Release Area.