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August 2012 inspection Jim Stark representing the Division, Kathy Welt representing MCC, Dan <br />Gray representing the US Forest Service and Desty Dyer representing the US Bureau of Land <br />Management attended the inspection. The OSM was contacted but could not attend the inspection. <br />IL CRITERIA AND SCHEDULE FOR BOND RELEASE <br />PHASE I <br />The Division evaluated West Elk's application for a Phase I Bond Release on 47.65 acres, requested <br />in the SL -03 application. Under Colorado's Permanent Program, the process of releasing the <br />reclamation bond for a mine site is explained in Rule 3.03 and further described in the Division's <br />1995 Guideline Regarding Selected Coal Mining Bond Release Issues. The bond release process <br />involves three phases. At Phase I, Rule 3.03.1(2) (a) states, "Up to sixty percent of the applicable <br />bond amount shall be released when the permittee successfully completes backfilling, regrading, <br />and drainage control in accordance with the approved reclamation plan." The Phase I Bond Release <br />is the only phase of bond release applicable to the SL -03 application. <br />Evaluation and inspection of the reclaimed areas was based on the specific requirements of the <br />reclamation plan and the functional requirements of the post- mining land use. Criteria for Phase I <br />Bond Release included the following (if applicable). <br />1. Hillslope and drainage channel gradients and general design compliance; <br />2. Performance of the reconstructed topography. Symptoms of failure or instabilities such as <br />slumping or exposed highwalls were examined; <br />3. Hillslope design/function with regard to erosion; <br />4. Swales and depressions with regard to numbers of features and effect on post- mining land - <br />use; <br />5. Blending of regraded land to undisturbed areas; <br />6. The functioning of drainages with regard to knick- points, blending at disturbance <br />boundaries and channel erosion; <br />7. Erosional features; and <br />8. Drainage control for the reclaimed area, including upslope diversions. <br />West Elk's approved reclamation plan was prepared in accordance with Rule 2.05.4. The approved <br />reclamation plan and backfilling and grading plan for the West Elk Mine are found in Volume 1 <br />of the permit application package (PAP). Exhibit 80, which is also found in the West Elk PAP, <br />provides specific detail regarding the methane drainage wells (MDW's) and associated roads. <br />West Elk Mine SL -03 Findings 4 10 August 2012 <br />