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MINED LAND RECLAMATION DIVISION <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />303 866 -3567 <br />FAX: 303 832 -8106 <br />February 3, 1992 <br />Mr. Robert Hagen, Director <br />Albuquerque Field Office <br />Office of Surface Mining <br />Reclamation and Enforcement <br />625 Silver Avenue, S.W., Suite 310 <br />Albuquerque, New Mexico 87102 <br />RE: Ten Day Letter 91 -02- 244 -5, Coal Basin Mine (C -81 -017) <br />STATE OF COLORADO <br />of co <br />,,, . O <br />.v."-F3": . <br />' 1 876 ` <br />Roy Romer, <br />Governor <br />Fred R Banta, <br />Division Director <br />Dear Mr. Hagen: <br />On January 24, 1992, we received notice from OSMRE, Albuquerque Field Office, <br />that our response to the referenced Ten -Day Letter was determined to be <br />arbitrary and capricious, and thus inappropriate. Pursuant to <br />30 CFR 842.11(b)(1)(iii)(A), The Colorado Mined Land Reclamation Division <br />requests an informal review of the AFO determination by the Deputy Director, <br />Operations and Technical Services. The basis of our request is outlined below. <br />In its finding of January 24, 1992, the AFO alleges that the MLRD had not <br />provided information which would indicate that we intend to ensure that the <br />alleged violation would be corrected. This finding is incorrect. <br />In our December 3, 1991 response to the Ten -Day Letter we outlined four <br />different scenarios which could develop. These scenarios were (1) <br />Mid - Continent could demonstrate the financial ability to reclaim the site; <br />(2) The Board would forfeit the bond and the Division pursued deficiency bond <br />monies through bankruptcy court; (3) Mid - Continent begins site reclamation, <br />but does not adhere to the approved schedule. MLRD would revoke the permit, <br />forfeit the bond and pursue legal remedies to obtain any deficiency which may <br />exist in order to accomplish site reclamation; (4) If a third party purchases <br />the site we would re- evlauate the mining and reclamation plans as well as bond <br />sufficiency (form and amount) and require additions as necessary. <br />Scenario one did not occur. Therefore, we will pursue one of the other <br />avenues to secure sufficient reclamation monies. These remedies are <br />contemplated by our agreement in lieu of forfeiture. The Division, The OSM <br />Western Support Center and Albuquerque Field Office have concurred on the <br />amount of bond necessary (see attached TDN NO. 91 -02- 355 -003, January 24, 1992 <br />response). Both the Division and the AFO agree that there may be a bond <br />deficiency, due to the instrument involved. As discussed in our <br />December 3, 1991 correspondence, recognition of this problem was a primary <br />reason to enter into an agreement in lieu of forfeiture. This agreement <br />precludes further action to resolve the question of deficiency until the <br />permit is revoked, or until Mid - Continent fails to comply with the reclamation <br />