2013-08-16_REVISION - C1980007 (2)

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QPtHT OF tiF, United States Department of the Interior 111 ) OFFICE OF SURFACE MINING ��, Reclamation and Enforcement ,9 '� Western Region Office 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 AUG 14 2013 David Berry, Director Office of Mined Land Reclamation Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203 -2273 REcE WED AUG 16 2013 DMSION OF RECLAWTON AIININGMD SA SV RE: Partial Approval of SL -4 Phase II Bond Release, West Elk Mine, Permit No. C -1980- 007, DRMS Proposed Decision and Findings of Compliance, July 7, 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 II Bond Release Proposed Decision document prepared by the Division of Reclamation Mining and Safety dated July 7, 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 II bond release applies to 67.6 acres associated with the Lone Pine Gulch facilities areas, the 2000 thermal event area and methane drainage well pads and roads from the nine different drilling areas. This land is both federally and privately owned. OSM and the Forest Service participated in bond release inspections on June 191' and 20' 2012 as well as a follow -up inspection on August 7, 2012. The BLM did not attend these inspections. By letters dated August 7, 2013 the BLM and USFS provided their concurrence with SL -4 (attached). OSM agrees with DRMS's determination that Mountain Coal Company has met or exceeded the requirements for Phase H bond release on the 67.6 acres of land as described above. The bond liability for this site prior to SL -4 is $14,140,134, while the Division currently holds a performance bond in the amount of $15,000,000.00. The Division now proposes to release $196,037.00 in liability and has determined that the remaining $13,944,097.00 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.