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the Pond 013 slide area that will be observed for at least one more year prior to it being eligible <br />for bond release. <br />Pond 012 Watershed — This area was to be graded to approximate original contour, as depicted in <br />approved Exhibit 20 -2, drainages reestablished, and the area was to be topsoiled and reseeded. <br />This area was not inspected during the August 8, 2012 inspection because the Division, during its <br />adequacy review of the bond release application, determined that this area is not eligible for Phase I <br />bond release. In early July 2012, major rainfall events hit the Yoast Mine area, resulting in <br />widespread damage to the south area postmining drainage channels. The YPM -5 -1, YPM -7, YPM- <br />7A, YPM -6 -2, and YPM -6 -3 drainages and watersheds, all draining to the Pond 012 watershed, will <br />require reconstruction and have therefore been excluded from this Phase I bond release. <br />This area also includes the north inslope of Pond 012, including the Pond 012 Slide. Major <br />landslides have occurred in the Pond 012 Slide area on four separate occasions dating back to 2006, <br />and minor slumps and sloughing had been ongoing through 2011. In 2011, SCC completed the <br />regrading and drainage installation portion of the approved slide remediation plan (Technical <br />Revision 46), but has not yet topsoiled or reseeded the area. In 2011, the Division and SCC agreed <br />to postpone topsoil redistribution and seeding of the Pond 012 slide area at the Yoast Mine until <br />2012. The delay was warranted to protect topsoil resources in the event that the area was not yet <br />stabilized. The winter of 2011/2012 was extremely dry and was not likely a good test of whether <br />the remediation efforts in the Pond 012 slide area were successful. In order to ensure that topsoil <br />resources would not be lost should a subsequent slide occur, the Division determined that it would <br />be best to verify the stability of the area under normal conditions before topsoil was replaced. <br />Therefore, the Division recommended that SCC further delay topsoil replacement and seeding until <br />2013. Once the Division and SCC have determined that the area is stable enough to replace the <br />topsoil, the area could be considered for Phase I bond release. <br />Pond 013 — No reclamation was required for Pond 013, as it has been permitted as a permanent <br />impoundment in its current configuration. This area was not considered for bond release because <br />it is within the Pond 013 slide area parcel that will be observed for at least one more year prior to <br />it being eligible for bond release. <br />Pond 014 - No reclamation was required for this impoundment, as it has been permitted as a <br />permanent impoundment in its current configuration. This area was not considered for bond <br />release because of the large sediment delta and drainage channel damage at the northeast inlet to <br />the pond, at the base of drainage channel YPM3 -2A that would preclude the Division making the <br />finding that drainage control has been successfully reestablished. <br />Light Use Road LU -4 — No reclamation was required for this road. LU -4 was permitted as a <br />light use road providing access to Pond 012 and approved for permanent retention as originally <br />constructed. This area was not considered for bond release because it is within the Pond 012 <br />slide area parcel that will be observed for at least one more year prior to it being eligible for bond <br />release. <br />Page 7 of 27 <br />Yoast Mine SL -4 <br />