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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />December 19, 2012 <br />Roy Karo <br />Seneca Coal Company, LLC <br />27796 Routt County Road 53 <br />P.O. Box 670 <br />Hayden, CO 81639 <br />Re: Yoast Mine (Permit No. C- 1994 -082) <br />Bond Release Application No. 4 (SL -4) and Surety Increase No. 1 (SI -1) <br />Dear Mr. Karo: <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />In accordance with Rule 3.03.2(5)(b) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining (Rules), you are hereby notified that the Division's decisions to <br />approve with conditions Bond Release Application No. 4 and to approve Surety Increase No. 1 for the <br />Yoast Mine became final on December 19, 2012. No requests for an adjudicatory hearing on our <br />proposed decision were received. <br />Bond Release No. 4 reduces your reclamation liability by $452,336.00, but Surety Increase No. 1 <br />increases your reclamation liability by $5,671.00. The current liability after SL -4 and SI -1 is now <br />$2,164,901.00. If you choose to reduce or replace your existing bond, it must equal or exceed <br />$2,164,901.00. The Division suggests you provide a copy of this letter, the OSM concurrence letter dated <br />December 6, 2012, and the BLM concurrence memorandum dated November 26, 2012 to your bonding <br />department for written evidence for approval to reduce your bond. Please find these documents attached. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />2 aim,. <br />Susan L. Burgmaier <br />Environmental Protection Specialist <br />cc: Mary Rodriguez, DRMS <br />Enclosure <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />