1992-04-06_GENERAL DOCUMENTS - C1981017

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ST *,\i of TtiF TA1� �� r -- VA United States Department of the Interior AMERIfA p o OFFICE OF SURFACE MINING Reclamation and Enforcement 3 ,�Q WASHINGTON, D.C. 20240 MAR 3 0 M 14a Mr. Steven G. Renner �yy<'F Coal Program Supervisor Department of Natural Resources APR 6 199< 1313 Sherman Street, Room 215 �trrj Denver, Colorado 80203 Dear Mr. Renner: This is in response to your February 3, 1992, letter requesting informal review of the Albuquerque Field Office (AFO) Director's determination that your agency did not take appropriate action with respect to ten-day letter (TDL) number 91-02-244-005, (Mid-Continent; Coal Basin Mine). The TDL alleges that the bond value of the real property being held to ensure reclamation work has been reduced below the amount required to complete reclamation. In your request for review, you explain that both your agency and the Office of Surface Mining Reclamation and Enforcement agree on the amount of performance bond necessary for this permit and agree that the bond instrument may provide insufficient money to perform site reclamation. However, the amount of any such deficiency is unknown. To address this potential problem, you further explain that your agency entered into a settlement agreement with the permittee in lieu of bond forfeiture as authorized by Colorado Rule 3.04.1(2). Under mechanisms contained in this agreement, your agency would take steps to obtain any deficient bond amount as events unfold regarding permit status. You argue that this agreement forecloses the issue of bond adequacy until such time as one of the mechanisms in the agreement is triggered. The record shows that the May 22, 1991, settlement agreement was executed in order to avoid bond forfeiture and allow the permittee time to correct violations and to decide if the mining operation could continue or should be sold to an operator who could comply with the provisions of the Colorado program. Colorado Rule 3.04.1(2) provides that declaration of forfeiture may be withheld if the permittee agrees to a compliance schedule to correct violations of the permit or to comply with bond conditions. As part of the agreement, mechanisms were included which would address the issue of any bond deficiency if operations were to resume or if the