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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />17 October 2012 <br />John W. Hickenlooper <br />Governor <br />Ross Gubka, P.E. <br />Mike King <br />Western Fuels- Colorado, LLC <br />Executive Director <br />P.O. Box 628 <br />Nucla, CO 81424 <br />Loretta E. Pineda <br />Director <br />Re: New Horizon Mine (Permit No. C- 1981 -008) <br />Bond Release Application No. 13 (SL -13) <br />Preliminary Adequacy Review <br />Dear Mr. Gubka: <br />Western Fuels- Colorado, LLC (WFC) has applied for release of reclamation liability for portions of the <br />permit area at the New Horizon Mine. The office of Greg Lewicki & Associates submitted WFC's <br />application for SL -13 to the Division on May 9, 2012. WFC published Public Notice of the application, <br />as required by Section 3.03.2(1), in the San Miguel Basin Forum on May 31 and June 7, 14, and 21, 2012. <br />Proof of Publication was submitted to the Division on June 11, 2012. <br />Written notice of the application was provided by WFC to adjoining landowners, surface owners, and <br />governing bodies, as required by 3.03.2(1)(a). The Division found the application to be incomplete on <br />July 3, 2012. Upon submittal of the notarized statements required by 3.03.2(1)(e) on July 16, 2012, the <br />Division determined that the application was complete for purposes of filing, and notified WFC of its <br />determination. <br />SL -13 requests Phase I release for 100.16 acres that have been backfilled and graded and Phase III release <br />for 7.22 acres of reconstructed county road and right -of -way. Surface ownership of the Phase I areas is <br />by Carl and Teresa Benson and WFC. Montrose County has jurisdiction over the roadways included in <br />the Phase III portion of the application. <br />A bond release inspection was scheduled for August 14, 2012. The Division notified WFC, the Bensons, <br />Montrose County, and the Office of Surface Mining of the date and time of the inspection. Mr. Benson <br />participated in the Phase I segment of the inspection; Montrose County did not attend. The Division's <br />report, documenting the discussions and observations that occurred during the inspection, was issued on <br />September 6, 2012. <br />A number of objections to and comments on the application were received by the Division between May <br />23 and June 29, 2012. These comments were subsequently forwarded to WFC, as required by 3.03.2(3), <br />in two separate transmittals: on June 11 and July 13, 2012. None of the objectors requested that an <br />informal conference be held to address their concerns. <br />Adequacy Comments <br />The Division has conducted an adequacy review of the SL -13 bond release request; a list of items <br />requiring a response is provided, below. (The text portion of the application, Pages 1 through 9, generally <br />follows the outline provided in the Division's April 18, 1995, "Guideline Regarding Selected Coal Mine <br />Bond Release Issues ".) <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction a Durango Active and Inactive Mines <br />