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United States Department of the Interior <br />David Berry, Director <br />Office of Mined Land Reclamation <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 -2273 <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />Western Region Office <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202 -3050 <br />APR 18 2013 <br />R <br />AP R 192.0 <br />division of Recce aat on. <br />Mining & <br />RE: Partial Approval of SL -06 Phase I Bond Release, Colowyo Mine, Permit No. C -1981- <br />019, DRMS Proposed Decision and Findings of Compliance, April 9, 2013 <br />Dear Mr. Berry, <br />This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) <br />receipt and review of the above Phase I Bond Release Proposed Decision document prepared by <br />the Division of Reclamation Mining and Safety (DRMS) dated April 9, 2013. The Proposed <br />Decision documents the applicant's compliance with the approved Colorado regulatory program <br />at Rule 3.03.2. <br />This Phase I bond release applies to backfilling, grading, and drainage reestablishment on 692.37 <br />acres associated with the East Pit and West Pit areas. DRMS is not approving bond release for <br />channels in the West Pit area that still receive runoff, or in the future will receive runoff, from <br />large disturbed areas that have not received bond release. These include Taylor Tributary Ditch, <br />Taylor Ditch, and East Taylor Ditch. <br />OSM participated in the bond release inspection on August 8, 2012. The BLM participated in a <br />portion of this inspection. By letter dated April 18, 2013, the BLM provided its concurrence <br />with SL -06 (attached). OSM interprets the BLM's concurrence to mean that Colowyo Coal <br />Company (CCC) is in compliance with all BLM coal lease stipulations. <br />OSM agrees with DRMS that CCC has met or exceeded the requirements for Phase I bond <br />release on the 692.37 acres of land as described above. The Division currently holds a <br />performance bond in the amount of $80,517,829.00 for the Colowyo Mine. The Division now <br />proposes to release $2,465,660.00 and has determined that the remaining $78,052,169.00 is <br />sufficient to assure completion of the reclamation plan if the work had to be performed by the <br />Board through independent contractors in the event of forfeiture. OSM agrees with the findings <br />and decision document and hereby provides OSM concurrence for the above bond release action <br />in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the <br />State - Federal Cooperative Agreement. <br />