2013-04-26_ENFORCEMENT - C1981033

• Permit No: C1981033
• IBM Index Class Name: ENFORCEMENT
• Doc Date: 4/26/2013
• Doc Name: Recommendation For Permit Revocation and Bond Forfeiture
• From: DRMS
• To: MLRB
• Email Name: SLB
• Email Name: SB1
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
STATE OF COLORADO
COLORADO
0 I V I S I ON OF
RECLAMATION
MINING
SAFETY
John W. Hickenlooper
Governor
TO: Mined Land Reclamation Board Mike King
Executive Director
Loretta E. Pineda
FROM: Sandra Brown, Sr. Environmental Protection Specialist Director
Julie Murphy, AGO
DATE: April 26, 2013
RE: Bear Mine No. 3, Bear Coal Company, Expired Permit No. C- 1981 -033
Recommendation for Permit Revocation and Bond Forfeiture
The Division of Reclamation, Mining and Safety ( "Division ") is recommending that the Mined Land
Reclamation Board ( "Board ") revoke the now - expired Permit Number C- 1981 -033 ( "Permit ") issued to
Bear Coal Company, Inc. (`Bear "), for its Bear Coal Mine No. 3 ( "Mine ") and forfeit the performance
bond for the Permit based upon Bear's violations. Bear did not renew its Permit as required by the
Colorado Surface Coal Mining Reclamation Act, C.R.S. §§ 34 -33 -101, et seq. ( "Act "), and the
Regulations of the Colorado Mined Land Reclamation Board for Coal Mining, 2 CCR 407 -5 ( "Rules ").
Further, Bear failed to complete reclamation of the Mine as required by the Act, the Rules, and its
Permit. The Division holds $160,000 in two Certificates of Deposit as Bear's performance bond for the
Permit. If forfeited, the funds would enable the Division to complete reclamation of the Mine. Thus, the
Division recommends that the Board revoke the Permit and forfeit the performance bond for the reasons
explained below.
Background Information
The Division initially issued the Permit in 1981 and issued the most - recent renewal on July 19, 2007.
The Act and Rules require an operator to maintain a valid permit for the entire mining operation
including reclamation. C.R.S. § 34- 33- 109(1); R. 2.01.3(1). Though Bear ceased mining activities at
the Mine in 1996, reclamation of the Mine remains incomplete. The Act and Rules required Bear to
maintain a valid permit by renewing the Permit every five years until reclamation activities were
completed and final bond release standards have been achieved. However, Bear filed its Articles of
Dissolution with the Colorado Secretary of State on April 4, 2011 and is now a dissolved corporation.
On October 24, 2011, the Division informed Bear that the Permit would expire on July 19, 2012. In
order to secure the right of successive renewal, the Act required Bear to submit a complete Permit
Renewal Application by January 21, 2012. On December 29, 2011, the Division received a letter from
Bear stating that Bear did not intend to renew the Division's Permit. Attachment 1. The letter further
stated "Bear is willing to perform work on site up until the permit expires. This work would include
installing the pond bypass line and reclaiming the treatment pond. However, at this time, Bear does not
have regulatory approval to perform these tasks. Expeditious approval of the pond bypass line by [the
Division] and CDPHE would benefit all parties involved."
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Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines