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Submittal of Bond Release Application and Completeness Determination by the <br />Division <br />The Division received PSCM's bond release application SL -01 on April 8, 2011. The <br />application was found complete on May 19, 2011, after the Division received proof of <br />publication of the applicant's public notice. The completeness determination was made in <br />accordance with Section 3.03.2(1)(d). <br />PSCM submitted the bond release application following the procedures described in the Act <br />and Regulations. The application also utilized the Division's Guideline Regarding Selected <br />Coal Mine Bond Release Issues, dated April 18, 1995. <br />Public Notice <br />PSCM published notice of the bond release application in the Steamboat Pilot once weekly <br />for four consecutive weeks, beginning on April 10, 2011. PSCM also notified landowners <br />within and adjacent to the mine permit area, and other interested parties of the application for <br />bond release, as required by section 3.03.2(1). The Division received no written comments, <br />objections, or requests for an informal conference regarding the bond release application. <br />Bond Release Inspection <br />The Division scheduled and conducted a bond release inspection on June 14, 2011. The site <br />inspection was conducted in accordance with Section 3.03.2(2). Jason Musick represented <br />the Colorado Division of Reclamation, Mining, and Safety. The operator was represented by <br />Jay James of Peabody Energy. The Office of Surface Mining and the Colorado State Land <br />Board were notified of the inspection and declined to attend. Based on this inspection, it was <br />determined that no maintenance issues or compliance concerns were identified. <br />III. APPROVAL CRITERIA FOR BOND RELEASE <br />Phase I Bond Release <br />Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released <br />when the permittee successfully completes backfilling, regrading, and drainage control in <br />accordance with the approved reclamation plan." With regard to Phase I bond release, SCC <br />applied for a partial phase I bond release via SL -01 for the Seneca 11 Mine (C- 1980 -005) of <br />1,795.4 acres of interim program and permanent program lands that currently lie in part within <br />the Seneca II Mine permit area and in part within the current Peabody Sage Creek Mine permit <br />area. SL -01 was approved on December 27, 2006. SCC via SL -04 for the Seneca 11 Mine (C- <br />80 -005) applied for a partial phase I bond release of 135.3 acres of permanent program lands <br />within the current Peabody Sage Creek Mine (8.0 acres) and the current Seneca 11 Mine permit <br />(127.3 acres). SL -04 was approved on May 11, 2010. <br />Peabody Sage Creek Mine Page 7 July 22, 2013 <br />Phase 11 Bond Release <br />