_GENERAL DOCUMENTS - C1981017 (251)

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present at this site. Analysis of available data indicates that the water quality of portal discharges has improved dramatically subsequent to closure of the underground operations. The data indicates that the water discharging from the Coal Basin mines is not detrimental to the vitality of the Crystal River. The on- going sampling program will either confirm this data, or define what, if any, problems exist at the site. Should problems become apparent, Mid-Continent will be responsible for appropriate remediation. Adequacy of the Reclamation Bond Both the Division and the United States Office of Surface Mining have concluded that the cost of reclaiming the site to the permit standards will total approximately $3 million. While the amount of bond is sufficient, the security for that bond is inadequate. The bond is secured by a first lien in favor of the State and the Office of Surface Mining on an industrial facility in Garfield County. The estimated value of this property is less than $1 million. In order to obtain funds necessary to reclaim the site, the State has been active in the bankruptcy proceedings since February, 1992. In addition, the State has filed a personal liability suite against the owners, controllers and agents of Mid-Continent Resources. The suit seeks to either compel reclamation by Mid-Continent, or obtain funds necessary to allow the State to reclaim the site using a third party contractor. Allowing Pitkin Iron to Reclaim the Site The Colorado Surface Coal Mining Reclamation Act requires that those parties responsible for mine site disturbance perform site reclamation. The Division has followed the statute by compelling Mid-Continent Resources to complete its reclamation obligation. Work performed by Mid-Continent resulted in a lessened liability to the State, in that the bond monies will not have to be used to complete this work. The Division filed the personal liabilities law suit and revoked the reclamation bond in order to ensure that reclamation activities will continue. Mid-Continent One Year Behind in Reclamation Mid-Continent has fallen as much as one year behind in the Mined Land Reclamation Board ordered reclamation schedule. This was cited by the Division as a reason to forfeit the reclamation bond and to file the personal liabilities lawsuit. Mid-Continent has concluded some reclamation at the mine. This work includes reclamation of the Number 5 mine, removal of mining buildings and equipment from two other mines, removal of various mine site facilities and conveyors, removal of PCB containing transformers, removal of underground storage tanks and sealing of a number of mine portals. The Division has inspected the site on a bi-weekly basis since snow melt last spring. The Division has issued numerous violations to Mid-Continent during this reclamation season in order to compel compliance with the coal reclamation statute.