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3. Release of 114.25 acres of reclaimed land. This action has followed a tortuous path <br />due to the impact of a flash flood and various confusions over exactly how many <br />acres were included in the release. The acreage to be released is identified on Exhibit <br />C -2 and F of the included maps. No acreage was actually released in the South Area, <br />although the original request included about 31 acres there. A flash flood that <br />occurred a few days after the request was submitted damaged this area such that <br />release was no longer feasible. It therefore remains in the bonded acreage. <br />4. Identification of operational lands. This land includes the pit, access road, plant, and <br />all lands that have not been reclaimed, including the land in the South Area that was <br />originally expected to be released. This land is identified on all maps. It includes a <br />total of 109.37 acres. This land MUST be bonded as it is affected, but not reclaimed. <br />5. Additional acreage for future operations. It has been decided by Schmidt that all of <br />Area 1U should be bonded, but Areas 2U and 1L (the new 1L which was previously <br />2L) need not be bonded. However, the unbonded lands must remain in the permit and <br />therefore are NOT requested to be removed from the permit. These lands may be <br />mined in the future, as explained below. Area 1U includes a piece of the access road <br />and the pit which would be bonded as current affected lands (see item 4 above). The <br />remainder of Area 1U includes 44.7 acres which, when added to the pit and piece of <br />the access road, includes all of Area 1U. <br />6. By adding 109.37 acres to 44.7 acres, the result in 154.07 acres. The reclamation costs <br />to follow are based on rounding off this figure to 155 acres. <br />7. The current bond is for 500 acres. By subtracting from that 114.25 acres of land <br />released because of completed reclamation, a new bonded amount comes to 385.75 <br />acres. It is desired that only 155 acres of that actually be bonded for the foreseeable <br />future. Thus, 230.75 acres would be removed from bonding but held in reserve as a <br />part of the approved plan. All or a desired portion of this land can be added back into <br />the bonded land in the future via an appropriate revision. None of this unbonded land <br />can be disturbed by Schmidt. However, that does not mean that disturbance by other <br />parties, such as State Land Board oil and gas lessees cannot disturb these lands. If that <br />were to occur, then it is likely those lands would be removed from the permit so as to <br />avoid responsibility for actions by others under the mined land reclamation laws. <br />Removal of oil and gas affected lands is not mandatory and is Schmidt's choice based <br />on the kind of disturbance and an examination of the risk. <br />Effect on State Land Board Approved Mining Land - <br />The lease from the Colorado State Land Board allows for 300 acres to be mined <br />within the new lease area and those are specifically shown on Exhibits C -2 and F. It <br />must be noted that there are slight differences between the way the State Land <br />Board (SLB) and the Mined Land Reclamation Board (MLRB) views these lands. <br />This section of this revision only pertains to the Land Board perspective and is <br />Technical Revision- Coal Creek Resources - M- 1988 -044 submitted August 6, 2012 Page 2 of 4 <br />