2012-12-20_GENERAL DOCUMENTS - C1981038

Home Browse Search

Proaosed Decision The Colorado Division of Reclamation, Mining and Safety proposes to approve, with one stipulation, Bowie Resources, LLC's (BRL) application for renewal of the Bowie No. 1 Mine permit. The application was submitted by Bowie Resources, LLC on September 13, 2012. This decision is based on a finding that the operations will comply with all requirements of the Colorado State Program as found in the Colorado Surface Coal Mining Reclamation Act, C.R.S. 34 -33 -101 et seq., and the Regulations promulgated pursuant to the Act. If no request for a formal hearing is made within thirty (30) days of the first publication of the issuance of this proposed decision, then this decision becomes final. Upon verification of acceptable surety by the applicant, the permit will be issued. The permit application, all supporting documentation and any stipulations or conditions will become a binding part of the permit. Review Process On July 11, 2012, the Division notified Bowie Resources, LLC that its permit for the Bowie No. 1 Mine would expire on April 20, 2013. BRL submitted an application for renewal of a valid, existing permit on September 13, 2012. The application was deemed complete on September 24, 2012, and notification of the complete application was sent to required entities (per Rule 2.07.3(3)(b)). A public notice of the application was published in the Delta County Independent once a week for four consecutive weeks beginning October 3, 2012. There were no comments regarding this permit renewal received by the Division as a result of the published public notice. The Division did not receive any comments on the application from any government agencies as a result of the notifications provided under Rule 2.07.3(3)(b). The Division identified adequacy concerns with the renewal application in a letter sent to BRL on November 26, 2012. BRL responded with an application for a minor revision to the permit application package that adequately addressed the Division's concerns. The revision was approved on December 12, 2012. The Division queried the Applicant Violator System (AVS) on November 27, 2012; the system reported that BRL was linked to an entity with unabated AML and state regulatory (Kentucky) violations. The entity in question owns less than 10% of a parent corporation of Bowie Resources, LLC and would not be considered an owner or controller under Rule 1.04(83a), so the link to these violations would not preclude issuance of the Bowie No. 1 Mine permit renewal. The system was again queried on December 19, 2012, again reporting the link to the AML and state violation. The reclamation cost estimate for bond liability has not been revised as a result of this renewal application. The reclamation cost estimate prepared for the Phase I Bond Release (SL -4), currently under Division review, will provide an updated liability amount for the site. The current liability for the Bowie No. 1 Mine is $4,718,106.31; the Division holds corporate sureties totaling $5,761,290.00. At the time of the last midterm review (October 15, 2010) there were two active stipulations attached to the permit: Stipulation No. 26 ONE YEAR AFTER THE COMPLETION OF RECLAMATION ACTIVITIES AT THE LOADOUT, THE OPERATOR SHALL COMPARE THE SOIL CHARACTERISTICS OF THE RECLAIMED AREA WITH THE ADJACENT UNDISTURBED ORCHARD AREAS TO VERIFY THAT THE HYDROLOGIC FUNCTION OF FLOOD IRRIGABILITY HAS BEEN RESTORED. SUCH Page 4 of 42