2012-03-07_REVISION - C1994082 (2)

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Ms. Loretta Pineda, Director Division of Reclamation, Mining and Safety Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 Dear Ms. Pineda: United States Department of the Interior OFFICE OF SURFACE MINING Reclamation and Enforcement Western Region Office 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 MAR 5 2012 RE: Proposed Decision to Approve Phase II Bond Release, Yoast Mine, Permit No. C- 1994 -082, Bond Release Application No. SL -3 This letter acknowledges the Office of Surface Mining's (OSM) receipt and review of the subject January 18, 2011, Proposed Decision for partial bond release on the above permit area which includes Federal lands. OSM is in agreement with the Proposed Decision and Findings of Compliance document (Proposed Decision) and hereby provides OSM concurrence to release Phase II Bond in accordance with 30 CFR 906.30.24. The Colorado Department of Natural Resources, Division of Reclamation, Mining and Safety (DRMS) conducted the Phase II Bond Release inspection required at Colorado Rule 3.03.2 (2) on July 19 and 20, 2011. DRMS's Proposed Decision documents the inspection findings and indicates that all required public notices and surface landowner notifications were made in a timely manner prior to the inspection. The ownership of the land for which bond release has been requested is private, state and federal ownership. The coal ownership is also private, state and federal ownership. The OSM Denver Field Division (DFD) participated in the bond release inspections noted above and inspection findings are documented in the OSM Mine -Site Evaluation Inspection Report dated July 19, 2011. The United States Department of the Interior, Bureau of Land Management (BLM) was notified of the inspection but did not attend either day of the inspection. The BLM received and reviewed DRMS's January 18, 2011, Proposed Decision. DFD received BLM's concurrence letter on March 5, 2012 (attached). No other Federal Land Management Agencies are involved in this action. No written objections or requests for an informal conference regarding the bond release application have been received by DRMS. The Denver Field Division understands the release application applies to 592 acres in the North, Neck Pit, and South areas. Seneca Coal Company originally sought release on 628.6 acres, but 36.6 acres were excluded because of instability. DRMS holds a performance bond of $4,305,484.00 for the Yoast Mine. DRMS proposes to release $1,693,918.00 based on the revised reclamation cost estimate. Final reclamation liability is not released on the acreage noted in this Phase II application, and will not be released until a Phase III bond release application is submitted and approved for this acreage. RECEIVED MART) Division of Reciatr„Th Mininn R. S fYt•.