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objections, or requests for an informal conference regarding the bond release application. <br />Bond Release Inspection <br />The Division scheduled and conducted a bond release inspection on June 13, 2011. The site <br />inspection was conducted in accordance with Section 3.03.2(2). Jason Musick represented <br />the Colorado Division of Reclamation, Mining, and Safety. The operator was represented by <br />Jay James of Peabody Energy. Based on this inspection, it was determined during this initial <br />inspection that some gully and drainage maintenance was needed. <br />The Division conducted a second inspection on July 18, 2011 to ensure maintenance items <br />noted during the June 13 inspection had been adequately addressed. Jason Musick <br />represented the Division and Jay James represented the operator during the inspection. <br />III. APPROVAL CRITERIA FOR BOND RELEASE <br />Phase I Bond Release <br />Rule 3.031(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released <br />when the permittee successfully completes backfilling, regrading, and drainage control in <br />accordance with the approved reclamation plan." With regard to Phase I bond release, SCC <br />applied for a partial phase I bond release of 1,795.4 acres of interim and permanent program <br />lands within the current Peabody Sage Creek Mine and the current Seneca II Mine permit areas <br />with SL -01. SL -01 was approved on December 27, 2006. SL -04 applied for a partial phase I <br />bond release of 135.3 acres of permanent program lands within the current Peabody Sage Creek <br />Mine (8.0 acres) and the current Seneca II Mine permit (127.3 acres). SL -04 was approved on <br />May 11, 2010. <br />Phase II Bond Release <br />Rule 3.03.1(2)(b) states, "Up to eighty -five percent of the applicable bond amount shall be <br />released upon the establishment of vegetation which supports the approved postmining land <br />use and which meets the approved success standard for cover based on statistically valid data <br />collected during a single year of the liability period ". In regard to Phase II bond release, <br />Rule 3.03. I (3)(b) also states, "No more than (60) percent of the bond shall be released so <br />long as the lands to which the release would be applicable are contributing suspended solids <br />to streamflow or runoff outside the permit area in excess of premining levels as determined <br />by baseline data or in excess of levels determined on adjacent nonmined areas ". <br />Although not specifically addressed in Rule 3.03, the Division evaluates topsoil replacement <br />in conformance with Rule 4.06 and permit requirements as a component of Phase 11 bond <br />release. <br />For Phase II bond release, a statistically valid, hypothesis- test -based demonstration that the <br />applicable cover standard has been achieved is required. For the Seneca II Mine, the <br />Seneca II Mine Page 6 September 10, 2012 <br />Phase 11 Bond Release <br />