2012-11-05_REVISION - C1982056 (5)

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October 2012 Twentymile Coal, LLC * Phase I Lac/hi/10 Release Applacatron ♦ Page 1 1.0 INTRODUCTION The State of Colorado, through the Division of Reclamation, Mining, and Safety (DRMS) - Department of Natural Resources (DNR), has permitted the Foidel Creek Mine (Mine) and associated support facilities and structures. The DNR currently holds a reclamation bond in the amount of $10,056,089 as surety for final reclamation of mining and related disturbance areas for the Mine. With this application, TC is requesting a Phase 1 partial bond release for the following mine disturbance areas, which are no longer needed to support ongoing or anticipated future mining operations, and which have therefore been reclaimed: • Eastern Mining District (EMD) /9 -Right Ventilation Shaft Installation (2.8 acres, 2009- 2010) • 18 -Right Intake Shaft Installation (Pad only - 1.8 acres, 2009 -2010) • Fish Creek Tipple Facility (9.6 acres, 2011 -2012) • Middle Creek Soil Material Stockpile (0.13 acres, 2011 -2012) Phase 1 partial bond release is requested for the 5.6 acres associated with the EMD and 18 -Right shaft installations, reclaimed during 2009 -2010, and for the 9.7 acres associated with the Fish Creek Tipple Facilities and Middle Creek Soil Stockpile reclaimed during 2011 -2012. The EMD /9 -Right Ventilation Shaft Installation was permitted (TR95 -24) and constructed in 1996 to provide adequate mine ventilation airflow for ongoing operations in the Eastern and Northern Mining Districts. With completion of active mining in these areas, the associated facilities and area were reclaimed in 2009 -2010. The 18 -Right Intake Shaft Installation was permitted (TR04- 44) and constructed to provide adequate mine ventilation airflow for ongoing operations in the Northern Mining District. Subsequent additions included installation of an escape hoist in 2005 (MR05 -200), shaft heaters in 2007 (MR07 -225), Mine Atmosphere Control Borehole in 2008 (MR08 -229), and modification of the shaft heaters in 2009 (MR09 -234). With completion of active mining in this area, the associated facilities and area were reclaimed in 2009 -2010. The Fish Creek Tipple Facilities were constructed in 1974 to receive, handle, and load coal to rail from the Energy Fuels No. 3 Mine and other Energy Fuels surface mining operations which were active at the time. The facility remained in use through about 1980. As applicable regulations were promulgated, this facility was re- permitted by Cyprus Yampa Valley Coal Company in 1984, in anticipation of possible use in conjunction with a nearby underground test mine. The Facility has remained idle since about 1980, and was reclaimed during the period 2011 -2012. 1.1 OPERATOR INFORMATION Twentymile Coal, LLC is the permittee of record for the Foidel Creek Mine and the applicant under this partial bond release application. TC's business address is: Twentymile Coal, LLC 29515 RCR27 Oak Creek, Colorado 80467 (970) 879 -3800 The site contact is: Jerry M. Nettleton, Manager Environmental Affairs