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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 />July 29, 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 11-W Mine (Permit No. C- 1982 -057), Bond Release Application No. 4 (SL -4) <br />Adequacy Review No. 1 <br />Dear Mr. Karo, <br />The Colorado Division of Reclamation, Mining and Safety (Division) wrote an adequacy review letter in regards to <br />the SL4 bond release application dated June 18, 2013. The Division received an adequacy review response letter <br />from your office on July 15, 2013. There are several outstanding issues that will need to be addressed prior to the <br />Division issuing a proposed decision for the SL4 bond release application. The adequacy items from the June 18, <br />2013 letter are listed below and italicized. A summary of Seneca Coal Companies (SCC) response to these items <br />and their current status follows. <br />Permanent Impoundments <br />Items 1 to 3 from the Divisions adequacy review letter: <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 <br />to 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 (SEO) <br />approves of the retention of each Sediment Pond and Stockpond. The following impoundments are lacking the <br />required SEO approval documentation: Sediment Ponds 005, 006, 009, 015, 016, 017 and Stock Ponds T -18, T- <br />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 />Response and Status: The response letter indicates the SEO is reviewing your request to leave these <br />impoundments as permanent features. The Division has not received the required documentation listed in <br />items 1 to 3 above. As these impoundments are a large portion of the land associated with this bond <br />release application, the Division recommends Seneca Coal Company request an extension of the decision <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />