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�= Mountain Coal Company
<br />February 8, 2013
<br />Mr. James R. Stark
<br />Colorado Department of Natural Resources
<br />Division of Reclamation, Mining and Safety
<br />1313 Sherman Street, Room 215
<br />Denver, CO 80203
<br />Dear Mr. Stark:
<br />RECEIVE
<br />FEB 1 1 ?013
<br />Division of Reclamation,
<br />Mining & Safety
<br />Mountain Coal Company, LLC
<br />West Elk Mine
<br />P O Box 591
<br />Somerset, CO 81434
<br />Jessica A. Loveland, P.E.
<br />Environmental Engineer
<br />jlovelandarchcoal.com
<br />phone: 970 929 2308
<br />Re: Mountain Coal Company, LLC, West Elk Mine; Permit No. CO -80 -007; Request for Phase I Bond
<br />Release, Exploration and Methane Drainage Well Pads and Roads in the West Flatirons, Box Canyon
<br />and Dry Fork of Minnesota Creek Areas
<br />Mountain Coal Company, LLC (MCC) requests Phase I Bond Release of $94,475.40 for methane drainage
<br />wells (MDW), exploration sites and roads that have been reclaimed within the area of the Box Canyon and the
<br />Dry Fork of Minnesota Creek (see Table I & II). These sites are located within the National Forest System
<br />lands and within portions of Sections 14, 27, 28, 34, and 35 of Township 13 South, Range 90 West, and in
<br />Sections 1 and 2 of Township 14 South, Range 90 West. These drill sites and roads were necessary for both
<br />coal exploration and mine methane drainage.
<br />MCC's mining and reclamation permit was originally issued by the CDRMS in July 1981, and was reissued
<br />August 1986, January 1993 (effective August 1991), July 1996, July 2001, July 2006 and July 2011. The
<br />current five -year permit term expires July 31, 2016. MCC's five -year permit area contains lands in Sections 9-
<br />11, 13 -36, T13S, R9OW, 6th PM; and Sections 23 -26, T13S, R91W, 6th PM, and Sections 1 -5 , 8 -12, T14S,
<br />R9OW, 6th PM in Delta and Gunnison Counties. The location of the lands can be found on the USGS 7.5
<br />minute Somerset and Minnesota Pass quadrangle topographic maps. The current permit area encompasses
<br />approximately 17,154.9 acres.
<br />MCC holds reclamation surety bonds from Arch Insurance Company and Bond Safeguard Insurance
<br />Company (Bond numbers SU1116159 and 5010562, respectively) totaling $15 million. The reclamation
<br />cost estimates for the reclaimed sites that are part of this request are covered by these bonds.
<br />Reclamation of the various drill site locations and roads within MCC's permit were completed in 2011
<br />and 2012. This included backfilling and regrading of 24 drill hole locations and approximately 2.1 miles
<br />of road. In addition, the sites and roads that will be considered for bond release have been revegetated
<br />using various methods of seeding, fertilizing, mulching and installation/application of straw and matting
<br />blankets. Approximately 13.85 acres have received these treatments.
<br />As agreed to in email correspondence (See Appendix H) dated January 25, 2011, MCC's Reclamation
<br />Photograph Reports of the reclaimed MDW sites and associated roads are sufficient for documenting that
<br />all facilities have been removed from each site and the sites have been regraded to approximate original
<br />contour. Therefore, drawings showing cross - sections of the backfilled and graded areas, drainage control
<br />facilities and the as -built reclamation have not been submitted with this request. The Reclamation
<br />Photograph Report (initiated in 2004) has been an annual documentation project that MCC voluntarily
<br />performs. It demonstrates and documents qualitative reclamation success over time. In addition to the
<br />photographs, MCC has included in Appendix A, a notarized professional engineer's certification that
<br />certifies the reclaimed areas in this application were back - filled and reclaimed to approximate original
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