2012-11-15_REVISION - C1982057 (3)

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Seneca Coal Company Seneca II —W Mine SL-4 - Phase I Bond Release Request I. INTRODUCTION An initial Phase I Bond release request (SL -2) was submitted in April 2009 and received partial release of the II -W mine area in June 2010. A second Phase I release request (SL -3) was submitted in July 2010 and received partial release in May 2011. This submittal represents a third formal Phase I bond release request (SL -4) that includes permanent roads, ponds and other minor areas that have been backfilled, graded, and drainages reestablished at the Seneca Coal Company, LLC (SCC), Seneca II -W Mine. The Seneca II -W Mine is located approximately seven miles south of the Town of Hayden, Colorado off of Routt County Road 53. Seneca II -W is a largely reclaimed surface type coal mine non - federal surface. Coal extraction began at Seneca II -W in 1990 and ceased in January 2006, due to a combination of difficult mining conditions and economic factors. During the life of the mine over 12 million tons of coal was produced. Reclamation grading, topsoil replacement and seeding of the mine pit areas have been completed. A copy of the complete approved permit is located in the Hayden Public Library in Hayden, Colorado. This application is submitted in accordance with the Colorado Division of Minerals and Geology Guideline Regarding Selected Coal Mine Bond Release Issues (April 18, 1995), Rule 3.03 Release of Performance Bonds. II. GENERAL REQUIREMENTS Date of Request November 15, 2012 Permittee Seneca Coal Company, LLC Permit Number C - 1982 - 057 Date Permit was Approved December 31, 1985 Mine Name Seneca II - W Mine Phase of Bond Release requested Phase I (SL -4) Total Acres within Permit 3,878.5 Total Acres Disturbed 1,290.2 Number of Acres Requested for Release 138.7 Reclamation Liability (Bond Amount) $ 6,255,553 Dollar Amount Requested for Release $ 1,090,188 November 2012