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PHASE II <br />Rule 3.03.1(2)(b) states, "Up to eighty -five percent of the applicable bond amount shall be released upon <br />the establishment of vegetation which supports the approved postmining land use and which meets the <br />approved success standard for cover... based on statistically valid data collected during a single year of <br />the liability period ". In regard to Phase II bond release, Rule 3.03.2(3)(b) also states, " No more than <br />sixty (60) percent of the bond shall be released so long as the lands to which the release would be <br />applicable are contributing suspended solids to streamflow or runoff outside the permit area in excess of <br />premining levels as determined by baseline data or in excess of levels determined on adjacent nonmined <br />areas ". Although not specifically addressed in Rule 3.03, the Division evaluates topsoil replacement in <br />conformance with Rule 4.06, and permit requirements, as a component of Phase II bond release. <br />The approved reclamation plan for the Hamilton Mine is found in Section 2.05.4 of the permit. Topsoil <br />replacement for Mining Area No. 1 was to be 10 inches, while Mining Area No. 3 was projected to <br />receive 16.4 inches of replaced topsoil. Vegetative cover and production were to be evaluated by <br />comparing the reclaimed areas to reference areas which were established during the baseline studies. <br />Collection and analysis of cover and production data is described in section 2.05.4(2)(e) of the permit. <br />The proposed postmining land use for the Hamilton Mine is improved rangeland and wildlife habitat. <br />Plant species to be used in revegetation were selected for their ability to support and enhance rangeland <br />and wildlife, and described in permit section 2.05.5. A soil loss demonstration for the reclaimed <br />disturbed area has been incorporated into subsection 2.05.3(4) of the permit as approved in Technical <br />Revision No. 10 and Minor Revision No. 11. James E. Stover, P.E. provided a notarized statement dated <br />October 29, 2009 certifying that all applicable reclamation activities performed at the Hamilton Mine, <br />mining permit C- 1991 -078, have been accomplished in accordance with the requirements of the Act, the <br />Rules, and the approved reclamation program. <br />As discussed in Section I of this document, the Division found that 3.4 acres of land associated with the <br />Topsoil Stockpile No. 1 area has never been approved for Phase II bond release. Given this, the operator <br />was required to demonstrate this area meets the requirement for both Phase II and III bond release. <br />PHASE III <br />Rule 3.03.1(2)(c) states that the final portion of performance bond, "shall be released when the permittee <br />has successfully completed all surface coal mining reclamation operations in accordance with this <br />approved reclamation plan, and the final inspection procedures of 3.03.2 have been satisfied. This shall <br />not be before the expiration of the period specified for revegetation responsibility in 3.02.3." Rule <br />3.03.1(4) states, "No bond shall be fully released until all reclamation requirements of these Rules and <br />the Act are fully met... ". The same rule goes on to state, "No acreage shall be released from the permit <br />area until all surface coal mining and reclamation operations on that acreage have been completed in <br />accordance with the approved reclamation plan." <br />The Hamilton Mine reclamation plan calls for backfilling and grading of the mine area and the grading <br />of Pond A as discussed in the Phase I bond release criteria above. The area that was mined is situated <br />on top of a flat north sloping mesa over Naturita Creek. During the mining operation, surface water was <br />diverted to Sediment Pond B and Sediment Pond A prior to discharge. Pond B was retained as a <br />Page 6 of 16 <br />