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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />June 11, 2013 <br />Jerry Nettleton <br />Twentymile Coal, LLC <br />29515 Routt County Road No. 27 <br />Oak Creek, CO 80467 <br />Re: Foidel Creek Mine (Permit No. C -82 -056) <br />Bond Release No. 01 (SL -01), Adequacy Review <br />Dear Mr. Nettleton, <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division received Twentymile Coal LLC's (TC's) application for a Bond Release (SL -01) <br />on November 5, 2012. The application was determined to be complete on January 28, 2013. No <br />concerns have been received from other agencies regarding this proposed bond release as of the <br />date of this letter. A bond release inspection of the proposed areas was conducted on May 28, <br />2013. The Colorado Division of Reclamation, Mining and Safety has completed its adequacy <br />review of the proposed technical revision. Please respond to the following comments or <br />concerns as necessary: <br />1. As a portion of the SL -01 application, TC requests release of a portion of an area known <br />as the "Brown Palace ", or CYCC Office Building. The bond release request for the <br />"Brown Palace" was to recover costs ($79,278) for demolition of the structure and did <br />not include a release for backfilling, regrading, and drainage control of the area <br />associated with the "Brown Palace." Rule(s) 3.03.1(2)(a), (b), and (c) addresses the <br />maximum amount under performance bonds applicable to an increment or a permit area <br />which may be released. These rules do not include the release of performance bonds <br />based solely on the demolition and reclamation of bonded structures. <br />Based on Rule 3.03, the Division cannot grant the release of the requested performance <br />bond associated with the "Brown Palace" until such time that reclamation of the area <br />associated with the "Brown Palace" meets the criteria set forth in Rule 3.03.1(2)(a), (b), <br />or (c). If TC believes that the Division's interpretation of Rule 3.03 is in error or <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />