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United States Department of the Interior OFFICE OF SURFACE MININGA Reclamation and Enforcement �r Western Region Office F�suR 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 MAY 8 2013 RECEIVED David Berry, Director MAY 13 ZG `a 3 Office of Mined Land Reclamation Division of Reclamation, Mining and Safety Division OT nd SOation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203 -2273 RE: Approval of SL -11 Phase II and III Bond Release, Edna Strip Mine (Permit No. C- 1980 - 001) DRMS Proposed Decision and Findings of Compliance dated April 17, 2013 Dear Mr. Berry, This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) receipt and review of the above Phase H and III Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety (DRMS) dated April 17, 2013. The Proposed Decision documents the applicant's compliance with the approved Colorado regulatory program at Rule 3.03.2 (bond release procedures) and successful completion of all requirements of the Rules and Act. SL -11, when finalized, will constitute full performance bond release. In accordance with Rule 3.03.3, DRMS will terminate its jurisdiction over the Edna Strip Mine upon final approval of SL -11. This Phase H and III final bond release applies to all remaining portions of the Edna Strip Mine. The 1186.4 acres encompass all remaining areas of responsibility including permanent roads, three permanent sediment ponds, a series of check ponds ( "string of pearls "), contour ditches, constructed drainages, and reclaimed lands in the Moffat and West Ridge areas. OSM participated in the bond release inspections on July 20, 2009, August 24, 2009, and June 21, 2011. The BLM was notified of the inspections but did not attend. By letter dated May 8, 2013, the BLM provided its concurrence with SL -11 (attached). OSM interprets the BLM's concurrence to mean that Chevron Mining, Inc (CMI) is in compliance with all BLM coal lease stipulations. OSM agrees with DRMS that CMI has met or exceeded the requirements for Phase H and III bond release on the 1186.4 acres of land as described above. The Division currently holds a performance bond in the amount of $2,570,491.00 for the Edna Mine. The Division now proposes to release all remaining reclamation liability in the amount of $2,570,491.00 for the 1186.4 acres associated with SL -11. This action releases CMI from all reclamation liability and will result in DRMS terminating its jurisdiction over this site. OSM agrees with the findings and decision document and hereby provides OSM concurrence for the above final bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State - Federal Cooperative Agreement.