2013-08-06_REVISION - C2009087 - Laserfiche WebLink

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"T Frye F, yp� United States Department of the Interior 3 OFFICE OF SURFACE MINING Reclamation and Enforcement � Western Region Office H 3 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 AUG 0 2 2013 RECEIVED David Berry, Director AUG 0 6 2013 Office of Mined Land Reclamation Division of Reclamation, Division of Reclamation, Mining and Safety Mining & Safety 1313 Sherman Street, Room 215 Denver, CO 80203 -2273 RE: Approval of SL -1 Partial Phase II Bond Release, Sage Creek Mine, Permit No. C- 2009 -087, DRMS Proposed Decision and Findings of Compliance, July 22, 2013 Dear Mr. Berry, This letter acknowledges the Office of Surface Mining (OSM), Denver Field Division's (DFD) receipt and review of the above Phase H Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety dated July 22, 2013. DFD agrees with the findings and decision document and hereby provides OSM concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the State - Federal Cooperative Agreement. DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado regulatory program at Rule 3.03.2. This Phase H bond release applies to 445.8 acres associated with interim and permanent program lands designated as Bond Release Block 4 (BRB -4). BRB - 4 is located in the northeastern portion of the permit area and includes permanent impoundments 002, 004, and PECOCO. The land and coal in BRB -4 is State owned. Neither OSM nor BLM attended the bond release inspection on June 14, 2011. By letter dated August 1, 2013 the BLM provided its concurrence with SL -1 (attached). OSM interprets the BLM's concurrence to mean that Peabody Sage Creek Mining (PSCM) is in compliance with all BLM coal lease stipulations. Based on available documentation, OSM agrees with DRMS's determination that PSCM has met or exceeded the requirements for Phase H bond release on the 445.8 acres of land as described above. In March of 2013 the Division calculated the reclamation liability associated with the Sage Creek Mine to be $4,916,169.02. The Division now proposes to release $995,884.55, which revises the reclamation liability amount to $3,920,284.47. The Division currently holds $6,160,432.65 in self bond and has determined that this is sufficient to assure completion of the reclamation plan if the work had to be performed by the Board or through independent contractors in the event of forfeiture. OSM concurs with the proposed bond release amount.