2012-12-07_REVISION - C1994082 (2)

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United States Department of the Interior David Berry, Director Office of Mined Land Reclamation Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203 -2273 Dear Mr. Berry, OFFICE OF SURFACE MINING Reclamation and Enforcement Western Region Office 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 DE 6 2012 RECEIVED DEC 072012 g 4SA RE: Partial Approval of Phase I Bond Release, Yoast Mine, Permit No. C- 1994 -082 DRMS Proposed Decision and Findings of Compliance, November 9, 2012 This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) receipt and review of the above Phase I Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety dated November 9, 2012. DFD agrees with the findings and decision document and hereby provides OSM concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State - Federal Cooperative Agreement. DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado regulatory program at Rule 3.03.2. This Phase I bond release applies to 115.5 acres associated with the Yoast Access Road and select facilities areas. Specifically, this action applies to backfilling, grading, and drainage reestablishment on the Yoast Access Road, the Dragline Deadhead Route, light use road LU -1, Pond 10, light use road LU -2, topsoil stockpile I, the Dragline Assembly/Disassembly pad, the YPM -8 drainage channel and TPM -8 watershed, light use roads LU -3A and LU -3B, and Stock Tank ST -1. DRMS is not approving the bond release requested for the dragline walk/county road detour on the north end of the permit area, the YPM -13 drainage channel, Topsoil Stockpiles A and C, the YPM -20 drainage channel, the unnamed road corridor connecting LU -5 and LU -3B, light use roads LU -4 and LU -5, the Pond 12 watershed, Pond 13, or Pond 14. OSM participated in the bond release inspection on August 8, 2012. The BLM did not attend this inspection. By letter dated November 26, 2012, the BLM provided its concurrence with SL- 4 (attached). OSM notes that the BLM's concurrence letter indicates that SL -4 pertains to 171.6 acres, while DRMS proposes to release only 115.5. This discrepancy is due to DRMS disapproving bond release for the areas noted above. OSM finds that Seneca Coal Company has met or exceeded the requirements for Phase I bond release on the 115.5 acres of land as described above. The Division currently holds a performance bond in the amount of $2,611,566.00 for the Yoast Mine. The Division now proposes to release $452,336.00 and has determined that the remaining $2,159,230.00 is