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Seneca Coal Company <br />Seneca II —W Mine <br />SL-4 - Phase I Bond Release Request <br />IV. PERMIT NUMBER AND RECLAMATION BONDS <br />Permit #: C- 1982 -057 <br />Issued: December 31, 1985 <br />Renewals: RN -1 01/01/1991 <br />RN -2 01/01/1996 <br />RN -3 12/31/2000 <br />RN -4 12/31/2005 <br />RN -5 12/31/2010 <br />V. PHASE I BOND RELEASE DOCUMENTATION <br />November 2012 <br />The Division's current calculated reclamation liability is $6,255,552.61. Seneca Coal Company <br />has posted a self -bond (SB -004) with the CDRMS and the Routt County Board of <br />Commissioners as an additional insured in that amount. <br />BACKGROUND <br />Pursuant to Rule 3.03.1, a permittee may request Phase I Bond release upon successful <br />completion of backfilling, regrading and re- establishment of drainage control in accordance with <br />the approved reclamation plan. The approved reclamation plan can be reviewed in its entirety in <br />the Seneca II -W Mine Permit Application Package (PAP) located in the Hayden Public Library, <br />Hayden, Colorado or the Colorado Division of Reclamation, Mining and Safety, 1313 Sherman <br />Street, Denver, Colorado. <br />Phase I release will apply only to those areas where backfilling and grading are complete, <br />including permanent roads and other final structures. Backfilling and grading are considered <br />completed upon the achievement of final post -mine topography in accordance with the permit, <br />including establishment of the approved permanent drainage system. The Phase I reclamation <br />activities have resulted in a stable landform in compliance with the approved conditions in the <br />CDRMS Permit No. C -82 -057. <br />The CDRMS completed a review and evaluation of the initial SL -2 Phase I bond release <br />application in May 2010 and approved release of 721.9 acres (actual survey 739.1). <br />In March 2011, the CDRMS completed a review and evaluation of the SL -3 Phase I bond release <br />application and approved release of another 412.35 acres. <br />SL - 4 AREAS REQUESTED FOR RELEASE <br />The following discussion presents and describes the areas requested for SL -4 Phase I bond <br />release. This request uses the SCC surveyed acreage as the basis for the requested release. The <br />acreage requested for release contains 138.7 acres. The overall area requested is presented on <br />Exhibit A, SL -4 Phase I Bond Release Area, with additional detail presented on Exhibit B, <br />Postmine Topography. <br />SL-4 -3 <br />