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Reclamation Act or the Colorado Surface Coal Mining Reclamation Act. <br />8. Honeywood Coal Company does not control and has not controlled mining operations with a <br />demonstrated pattern of willful violations of the Act of such nature, duration, and with such resulting <br />irreparable damage to the environment as to indicate intent not to comply with the provisions of the <br />Act. (2.07. 6(2)(h)). <br />9. The Division finds that surface coal mining and reclamation operations to be performed under this <br />permit will not be inconsistent with other such operations anticipated to be performed in areas <br />adjacent to the permit area (2.07.6(2)(i)). <br />10. The original reclamation bond for the mine was posted in the amount of $600, 000, with a liability of <br />$573,610. Upon approval of PR -01 and SO -01, in 1992, the posted bond was increased to $650,000, <br />with a liability of $616,250. With TR -03, approved in October 1993, the Operator demonstrated that <br />the appropriate liability (given the limited disturbance that actually occurred) was $381,935. In <br />August 1994, the Division approved the reduction in liability of $234, 315, together with a Phase I <br />bond release (SL -01) of $229,161. The resulting liability and bond amount was $152,774. <br />With Permit Renewal No. 3 (RN -03), in 2007, the Division updated the Reclamation Cost Estimate <br />for the Hamilton Mine and determined that the amount of bond held was insufficient. The liability <br />was increased by $294,507 to $447,281. <br />In April 2011, with SL -02, Phase II bond release was approved for 86.8 acres. The bond amount <br />was thus reduced to $65,915. The Division estimates the reclamation liability for mining and <br />reclamation operations in this permit term to be $67,057.18. This liability amount was determined <br />based on updated costs for the reclamation tasks remaining as listed in the liability estimate from <br />SL02. One additional task item was added for the removal of the barbed wire fence around the <br />reclaimed areas. This cost was not included in the liability estimate for SL -02. The Operator has <br />submitted a Phase III bond release application (SL -03) for a full mine site release. Until SL -03 is <br />finalized, the Division will not require an increase in the currently held financial warranty. The <br />Division currently holds a $65,915 performance bond for the Hamilton Mine. (2.07.6(2)(j)). <br />11. The Division has made a negative determination for the presence of prime farmland within the permit <br />area. The decision was based on a letter from the Soil Conservation Service that demonstrates that no <br />prime farmland mapping units are found within the permit area. (2.07.6(2)(k)). <br />12. The Division has made a negative determination for the existence of alluvial valley floors within the <br />permit area. This determination is based on information provided by the applicant demonstrating <br />that: all mine areas will be on uplands where there are no stream laid deposits holding streams; there <br />is insufficient water available to support flood irrigation or subirrigated agriculture; and there is no <br />history of irrigated agricultural activities. (2.07.6(2)(k) and 2.06.8(3)(c)). <br />For additional specific findings concerning alluvial valley floors near the permit area, please see <br />Section B -X. <br />13. The Division hereby approves the post - mining land uses of the operation. It was determined that <br />grazing and wildlife habitat meet the requirements of Rule 4.16 for the permit area. (2.07.6(2)(1)). <br />April 3, 2012 <br />RN4 <br />13 <br />