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SECTION III - Decision to Require Revisions <br /> The Division has conducted a Midterm Review of surface and coal mining <br /> operations at Coal Basin Mines, as required by Rules 2.08.3, 2.06.2( 10) , <br /> 2.06.3(4) , 2.06.5(3) , 2.07.6(5) and 3.02.2(4) . The Division finds that <br /> certain modifications to the permit are necessary to ensure compliance with <br /> the Act and Regulations. Such a finding is provided for by Rule 2.08.3(3) and <br /> may be appealed by the permittee to the Colorado Mined Land Reclamation <br /> Board. Unless otherwise specified, Mid-Continent must submit a revision <br /> within 60 days of receipt of this letter which addresses the following issues. <br /> 1 . In January, 1991 the Office of Surface Mining issued final approval of <br /> recently promulgated state regulations for Identification of Interests. <br /> New Rule 1 .04(83) contains an expanded definition of "Owned or <br /> Controlled", while Rule 2.03.4 details the information to be submitted <br /> concerning owners and controllers. The additional information must be <br /> submitted by all Colorado operators at time of Permit Renewal , <br /> Permit Revision, or Midterm Review. <br /> 2. The other rule change of note requires separate primary and secondary <br /> spillways, or an open-channel combination , for all sediment ponds . A <br /> grandfathering clause was proposed by the Division but was not accepted <br /> by OSM. Mid-Continent must identify any ponds which do not comply with <br /> Rule 4.05 .6( 3) (d) . A separate technical revision application containing <br /> design plans necessary to bring non-complying ponds into compliance with <br /> the revised regulation will need to be submitted within 60 days of <br /> receipt of this letter. <br /> 3. The Division currently holds a reclamation bond for the Coal Basin Mines <br /> in the form of a Deed of Trust in the amount of $3 ,000 ,000. The Division <br /> has, as required by Rule 3.02.2( 4) , recalculated Mid-Continent's bond <br /> liability. The Division 's revised estimate is $2,993.000, and the <br /> calculations are shown in Exhibit 1 of this document. The Division <br /> requests that a re-appraisal of the real property which is the collateral <br /> for the reclamation bond be submitted. No more than 85% of the appraised <br /> value will be allowable for inclusion in the bond. Such appraisal must <br /> be submitted and accepted by the Division prior to resumption of active <br /> status. Appropriate bond increases will need to be provided if <br /> reclamation cost estimates associated with any of the revisions requested <br /> in this letter indicate that such increases are warranted. <br /> 4. A number of sediment control issues were identified during the review <br /> which Mid-Continent Resources will need to address: <br /> a. We have found it to be extremely difficult to locate sediment <br /> control structural designs in the current permit. Once found, xerox <br /> copies are at times illegible. A reorganization of the surface <br /> water and sediment control sections of the permit application would <br /> benefit both the operator and the Division . At a minimum, illegible <br /> copies of design drawings and calculations will need to be replaced <br /> and such updates as necessary to insure that all required design <br /> drawings are included in the application and properly referenced in <br /> the text and the table of contents will need to be made. <br /> -6- <br />