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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 />C O L O RA D O
<br />D I V I S I O N o f
<br />Denver, Colorado 80203
<br />RECLAMATION
<br />Phone: (303) 866 -3567
<br />M IN I NIN G
<br />N
<br />FAX: (303) 832 -8106
<br />SAFETY
<br />June 18, 2013
<br />John W. Hickenlooper
<br />Governor
<br />Roy Karo
<br />Seneca Coal Company, LLC
<br />Mike King
<br />P.O. Box 670
<br />Executive Director
<br />Hayden, CO 81639
<br />Loretta Pineda
<br />Director
<br />Re: Seneca II -W Mine (Permit No. C- 1982 -057), Bond Release Application No. 4 (SL -4)
<br />Adequacy Review No. I
<br />Dear Mr. Karo,
<br />The Colorado Division of Reclamation, Mining and Safety (Division) received the SL4 bond release application on
<br />November 15, 2012. The application was called complete for review on March 7, 2013. The Division conducted an
<br />inspection of the site on June 4, 2013. Based on the site inspection , a review of the bond release application and the
<br />requirements for the approved Seneca II -W Mine permit application, as well as the Regulations of the Colorado
<br />Mined Land Reclamation Board for Coal Mining there are several items that will need to be addressed prior to the
<br />Division's approval of the Phase I bond release application.
<br />Permanent Impoundments
<br />The following impoundments are under consideration for Phase I Bond Release; Ponds 005, 006, 009, 015, 016,
<br />017, and stock tanks; T -2, T -3, T -5, T -18, T -20, T -22, T -24, T -26 and T -27.
<br />1.) In accordance with Rule 4.05.9(13), the Operator must submit a demonstration that an impoundment will be
<br />left as a permanent feature. Appendix 20 -2.2 of the permit contains a number of these demonstrations for several
<br />of the impoundments proposed to be left in place. The following impoundments are lacking the required
<br />permanent impoundment demonstration: Pond 005, T -18, T -20, T -22 and T -24. Prior to the approval for any
<br />bond release for these impoundments, Seneca Coal Company (SCC) must submit the required permanent pond
<br />demonstration.
<br />2.) Appendix 20 -2.1 of the permit contains letters signed by various landowners requesting permission for certain
<br />structures /facilities to be left in place as a permanent feature. The following impoundments are lacking
<br />permission of the landowner to be retained as a permanent feature: Pond 005, T -18, T -20, T -22 and T -24. Prior to
<br />the approval for any bond release for these impoundments, SCC must submit documentation the landowner
<br />desires for these structures to remain as a permanent feature.
<br />3.) Attachment 20 -2 of the permit indicates SCC will submit documentation the Office of the State Engineer
<br />(SEO) approves of the retention of each Sediment Pond and Stockpond. The following impoundments are lacking
<br />the required SEO approval documentation: Sediment Ponds 005, 006, 009, 015, 016, 017 and Stock Ponds T -18,
<br />T -20, T -22, T -24 and T -26. Prior to the approval for any bond release for these impoundments, SCC must submit
<br />the required SEO approval documentation.
<br />9.4 Acre Pit Ramp Slide Area
<br />4.) Attachment 20 -E of Tab 20 contains a remediation plan for the pit ramp slide, during MR72, SCC expanded
<br />the remediation activities for the pit ramp slide. The expanded plan is included in a letter from the North West
<br />Colorado Consultants dated October 1, 2012 and is included in the above referenced attachment. It appears two
<br />Office of Office of
<br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines
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