2013-05-06_REVISION - M2004009 (4)

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TURNPIKE MINING RESOURCE DRMS PERMIT NO. M- 2004 -009 EXPLANATION FOR PARTIAL RELEASE /ACREAGE REDUCTION REQUEST Per a Mined Land Reclamation Board Order (MV- 2012 -020) for the Turnpike Mining Resource and based on a Corrective Action from the DRMS as part of that order requiring that a portion of the mined and reclaimed area on this permit be removed from the permit area, this request for partial release (an acreage reduction) is being submitted by the operator, Asphalt Specialties Co., Inc. ( "ASCI "). An area of mined and reclaimed land from within the permit area contains a fully - completed waste- water treatment plant ( "WWTP ") operated by the Town of Erie and ancillary operations encompassing 12.23 acres. The land within this WWTP has been mined, backfilled and revegetated. The WWTP area is fully enclosed by a 6 ft. high cyclone fence. The area just at the entrance to the WWTP has also been fully landscaped with trees and shrubs. Because the WWTP operation has no relation with the remaining mining and reclamation on this permit area and is reclaimed, the WWTP area should be removed from the permit per the Board Order and Corrective Action. This area is shown on the accompanying mine and reclamation plan maps for the north % of the Turnpike site (Ex. C -2 sheet 1 and Ex. F sheet 1). As part of the recently approved amendment for this permit (AM -2), it was noted that there is an area in the northwest portion of the site that has also has been fully reclaimed and was part of a former DRMS permit at this location. The Turnpike site covered by the former DRMS /DMG permit was fully released from bonding in January 1996. This location contains a small trout pond created for that purpose and is fully reclaimed with 3:1 to 5:1 side slopes and mature vegetation surrounding the pond in the form of trees, shrubs and grasses. No water augmentation responsibility for the open body (trout pond) of water in this location is required, as the pond is covered by a previous augmentation agreement with the District 6 Water Users Group on the Turnpike site. This area should also not be a part of the permit due to its completed and established reclamation. This area is shown on the accompanying mine and reclamation plan maps for the north %2 of the Turnpike site (Ex. C -2 sheet 1 and Ex. F sheet 1) and encompasses 11.6 acres. Asphalt Specialties Co., Inc. respectfully request that these two areas encompassing approximately 24 acres, as shown on the accompanying mine and reclamation plan maps for the north % of the Turnpike site, be removed from this permit through this partial release /acreage reduction request. No decrease in bonding is being requested with this action, as the bonding has recently been re- calculated based on the approval of AM -2, only a decrease in acreage is being requested. However, during the approval process for AM -2 on this site, the bond (Exhibit L- Reclamation Costs) was re- calculated removing the cost of the reservoir construction and adding the cost of burying the excess shale from that construction onsite, a difference of $284,337.00 is currently being held by the DRMS in excess of what is needed based on the new calculations. This calculation is shown in the approval letter for AM -2 of March 18, 2013 by the DRMS. ASCI requests that the $284,337.00 be "re- funded" to us as a credit to our bonding company, so that we can reduce the yearly cost of bonding on this site at this time.