1993-11-15_PERMIT FILE - C1981017 (2)

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MINED LAND RECLAMATION DIVISION Department of Natural Resources 1313 Sherman St., Room 215 Denver. CC, 80203 303 866 -3567 FAX: 303 832 -8106 December 3, 1991 STATE OF COLORADO Roy Romer, Governor Mr. Robert Hagen, Director Albuquerque Field Office Office of Surface Mining Reclamation and Enforcement 625 Silver Avenue, S.W., Suite 310 Albuquerque, New Mexico 87102 RE: Mid - Continent Ten Day Letter /Citizens Complaint, File No. C -81 -017 Fred R. Banta, Division Director Dear Mr. Hagen: The Division received the above referenced Ten Day Letter and citizen complaint on November 22, 1991. On December 2, 1991, AFO extended the response deadline to 5 PM December 3, 1991. The State of Colorado is extremely concerned about all aspects of the Coal Basin operation. As a result of this concern, the Division scheduled a hearing before the Mined Land Reclamation Board on May 22, 1991. Pursuant to Colorado Rule 5.03.3, Mid - Continent was ordered to show cause as to why the permit should not be suspended or revoked. As a result of this Show Cause Order, the Mined Land Reclamation Board entered an Order requiring Mid - Continent to comply with the terms of the attached Settlement Agreement. Colorado recognized that the best interests of the State were served by allowing Mid - Continent time to correct certain violations while concurrently attempting to sell the mine to an operator who could comply with the provisions of the Act. Pursuant to Rule 3.04.1(2), Colorado entered into the Agreement rather than immediately forfeiting the performance bond. The Agreement has a number of mechanisms which we will employ in the near future. Unless. the permit is being transferred to a new operator, Mid - Continent must demonstrate that it has the financial capability to reclaim the site in accordance with the established schedule. This demonstration must occur by January 15, 1992. If Mid - Continent cannot demonstrate that it is financially capable of performing site reclamation, the Board may forfeit the bond on January 23, 1992 without reverting to the Show Cause process. If this scenario is pursued, the Division shall immediately initiate legal actions to secure monies sufficient to perform site reclamation. If Mid - Continent demonstrates that they are financially capable of completing the reclamation, but does not adhere to the approved schedule, the Board may forfeit the bond upon a determination that the schedule was not followed. In this case, the value of the collateral bond would be offset by that reclamation work which was completed, thus reducing the overall reclamation liability. However, if it was determined at that time that the liquidated collateral bond was insufficient to secure site reclamation, we would pursue legal remedies.