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reclaimed lands in the Moffat Pit and West Ridge areas. All other areas outside of this bond
<br />release request have previously received final bond release.
<br />Dollar Amount of Bond Release Request
<br />The Division currently holds a reclamation bond in the amount of $2,570,491.00 from
<br />Chevron Mining, Inc. Chevron Mining, Inc. requested a bond release of $2,733,438.00 or all
<br />remaining bond and liability. The maximum bond amount the Division can release is
<br />$2,570,491.00, which is the total remaining bond amount.
<br />Termination of Regulatory Jurisdiction
<br />In conjunction with this Proposed Decision to Approve this Phase II and III (final) bond
<br />release request, the Division proposes to terminate its regulatory authority over Chevron
<br />Mining, Inc. as it relates to the Edna Mine (DRMS Permit No. C- 1980 -001). Upon final
<br />approval of this bond release request, the Division will terminate its regulatory jurisdiction
<br />over the Edna Mine.
<br />IL SUMMARY OF THE BOND RELEASE PROCESS
<br />Reclamation History of Bond Release Area
<br />In 1982, the Division held two bonds for the Edna Mine. One, in the amount of $1,642,000,
<br />was posted in 1977 and is often referred to as the "Life of Mine Bond ". The other, in the amount
<br />of $2,631,945, was posted in 1981 and is often referred to as the "Permanent Program Bond ".
<br />In April of 1983, Pittsburg and Midway Coal Mining Company (P &M), the previous permittee,
<br />applied for full liability release of reclaimed lands bonded by the "Life of Mine Bond ". On May
<br />1, 1984, the Division proposed to approve the release of $1,622,000 and to retain $20,000 for
<br />stabilization of several gullies. During the week of May 14, 1984, a landslide, known as the
<br />"South of Shop Slide ", occurred in a portion of the area that was the subject of the release. On
<br />June 11, 1984, the Division objected to its own proposed decision and requested a Board
<br />Hearing. In September 1984, the Board denied the Division's request, affirmed the Division's
<br />previous proposed decision, approved release of $1,622,000, and retained $20,000 for
<br />stabilization of gullies.
<br />In March of 1986, P &M applied for full liability release of six acres in Section 24, T4N, R85W,
<br />6t' P.M. This request for liability release was specific to the $2,631,945 "Permanent Program
<br />Bond ". No dollar amount was requested for release, as P &M desired that the released liability
<br />be transferred to another portion of the mine. The Division approved this full liability release in
<br />May of 1986. This release appears to be the first liability release associated specifically with the
<br />"Permanent Program Bond ".
<br />In November of 1987, in conjunction with a Settlement Agreement pertaining to Permit
<br />Renewal RN -01, the Division and P &M agreed that the "Permanent Program Bond" should be
<br />Edna Mine Page 4 April 12, 2013
<br />Phase II. and III Bond Release
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