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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
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<br />RECEIVED
<br />MAY 2 4 2013
<br />DIVISION OF RECLAMATION
<br />MINING AND SAFE'
<br />RE: Approval of SL -4 Partial Phase I Bond Release, Bowie No.1 Mine (Permit No.
<br />C -1981- 038) DRMS Proposed Decision and Findings of Compliance dated April 15, 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 Partial Phase I Bond Release Proposed Decision document
<br />prepared by the Division of Reclamation Mining and Safety (DRMS) dated April 15, 2013. The
<br />Proposed Decision documents the applicant's compliance with the approved Colorado regulatory
<br />program at Rule 3.03.2.
<br />This Partial Phase I bond release applies to backfilling, grading, and drainage reestablishment on
<br />69.6 acres associated with the Bowie No. 1 East Mine and the Timber Storage Area.
<br />OSM participated in the bond release inspection on June 28, 2012. OSM notes that 40.15 acres
<br />were originally proposed for release. However, Bowie Resources, LLC (Bowie Resources),
<br />subsequently submitted a revised application for partial bond release dated August 28, 2012, that
<br />resulted in a total of 70 acres being proposed for release. During its review of the revised
<br />application, DRMS used GIS data to verify acreages proposed for release and identified a
<br />slightly smaller total of 69.6 acres. DRMS discussed the revised acreage with Bowie Resources
<br />who agreed with the finding. In addition, Bowie Resources originally requested $1,250,000 for
<br />the bond release. DRMS used a cost estimating program to determine the exact amount of the
<br />bond release based on the work accomplished at the site. As a result, DRMS calculated the
<br />releasable amount to be more than was originally requested but still maintained the minimum
<br />40% of the original bond amount. The BLM did not attend this inspection. By letter dated May
<br />10 and a May 20, 2013, follow -up email response that addressed the aforementioned acreage
<br />increase, the BLM provided its concurrence with SL -4 (attached). OSM interprets the BLM's
<br />concurrence to mean that Bowie Resources is in compliance with all BLM coal lease
<br />stipulations.
<br />OSM agrees with DRMS that Bowie Resources has met or exceeded the requirements for Phase I
<br />bond release on the 69.6 acres of land as described above. DRMS currently holds a performance
<br />bond in the amount of $5,761,290.00 for the Bowie No. 1 Mine. The current liability for the
<br />entire mine site is $4,718,106.31. DRMS now proposes to release $1,278,543.70 and has
<br />United States Department of the Interior
<br />A'
<br />OFFICE OF SURFACE MINING
<br />Reclamation and Enforcement
<br />Western Region Office
<br />1999 Broadway, Suite 3320
<br />Denver, CO 80202 -3050
<br />MAY 2 3 2013
<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 />�F
<br />°xsua�
<br />RECEIVED
<br />MAY 2 4 2013
<br />DIVISION OF RECLAMATION
<br />MINING AND SAFE'
<br />RE: Approval of SL -4 Partial Phase I Bond Release, Bowie No.1 Mine (Permit No.
<br />C -1981- 038) DRMS Proposed Decision and Findings of Compliance dated April 15, 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 Partial Phase I Bond Release Proposed Decision document
<br />prepared by the Division of Reclamation Mining and Safety (DRMS) dated April 15, 2013. The
<br />Proposed Decision documents the applicant's compliance with the approved Colorado regulatory
<br />program at Rule 3.03.2.
<br />This Partial Phase I bond release applies to backfilling, grading, and drainage reestablishment on
<br />69.6 acres associated with the Bowie No. 1 East Mine and the Timber Storage Area.
<br />OSM participated in the bond release inspection on June 28, 2012. OSM notes that 40.15 acres
<br />were originally proposed for release. However, Bowie Resources, LLC (Bowie Resources),
<br />subsequently submitted a revised application for partial bond release dated August 28, 2012, that
<br />resulted in a total of 70 acres being proposed for release. During its review of the revised
<br />application, DRMS used GIS data to verify acreages proposed for release and identified a
<br />slightly smaller total of 69.6 acres. DRMS discussed the revised acreage with Bowie Resources
<br />who agreed with the finding. In addition, Bowie Resources originally requested $1,250,000 for
<br />the bond release. DRMS used a cost estimating program to determine the exact amount of the
<br />bond release based on the work accomplished at the site. As a result, DRMS calculated the
<br />releasable amount to be more than was originally requested but still maintained the minimum
<br />40% of the original bond amount. The BLM did not attend this inspection. By letter dated May
<br />10 and a May 20, 2013, follow -up email response that addressed the aforementioned acreage
<br />increase, the BLM provided its concurrence with SL -4 (attached). OSM interprets the BLM's
<br />concurrence to mean that Bowie Resources is in compliance with all BLM coal lease
<br />stipulations.
<br />OSM agrees with DRMS that Bowie Resources has met or exceeded the requirements for Phase I
<br />bond release on the 69.6 acres of land as described above. DRMS currently holds a performance
<br />bond in the amount of $5,761,290.00 for the Bowie No. 1 Mine. The current liability for the
<br />entire mine site is $4,718,106.31. DRMS now proposes to release $1,278,543.70 and has
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