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(OSM), the Bureau of Land Management (BLM) and other interested parties of the application for <br />bond release, as required by Rule 3.03.2(1). No comments, written objections or requests for an <br />informal conference regarding the bond release application were received by the Division. <br />A bond release inspection was scheduled and conducted on May 21, 2013. The site inspection was <br />conducted in accordance with Rule 3.03.2(2). Inspection attendees included: Rob Zuber and Jason <br />Musick of the Division; Kurtis Blunt of Colowyo; and Jennifer Maiolo of BLM No <br />representatives from OSM, from State or local agencies, or adjacent land owners attended the <br />inspection; however, all parties were notified of the inspection via certified mail. A summary of the <br />bond release inspection and concerns identified are presented in Section IV, below. Detailed <br />observations of the inspection are documented in the inspection report that was issued June 3, 2013. <br />See Figures 1 — 3 for the location of the SL -07 Phase I Bond Release area. <br />III. CRITERIA FOR BOND RELEASE <br />Phase I Bond Release <br />The Division evaluated Colowyo's request for Phase I Bond Release on 137.4 acres in the SL -07 <br />application, as shown on Figures 1 - 3 of this document. The process of releasing the reclamation <br />bond for a coal mine site in Colorado is explained in Rule 3.03 and further described in the <br />Division's 1995 Guideline Regarding Selected Coal Mining Bond Release Issues. The bond release <br />process involves three phases. At Phase I, Rule 3.03.1(2) (a) states, "Up to sixty percent of the <br />applicable bond amount shall be released when the permittee successfully completes backfilling, <br />regrading, and drainage control in accordance with the approved reclamation plan." <br />Evaluation and inspection of the reclaimed areas was based on the specific requirements of the <br />reclamation plan and the functional requirements of the post- mining land use. Criteria for bond <br />release included the following. <br />1. Hillslope and drainage channel gradients and general design compliance; <br />2. Performance of the reconstructed topography. Symptoms of failure or instabilities such as <br />slumping or exposed highwalls were examined; <br />3. Hillslope design/function with regard to erosion; <br />4. Swales and depressions with regard to numbers of features and effect on post- mining land <br />use; <br />5. Blending of regraded land to undisturbed areas; <br />6. The functioning of drainages with regard to knickpoints, blending at disturbance boundaries <br />and channel erosion; <br />7. Erosional features; and <br />8. Drainage control for the reclaimed area, including upslope diversions. <br />Colowyo's approved reclamation plan was prepared in accordance with Rule 2.05.4. Colowyo was <br />granted a variance for contemporaneous reclamation for the East Pit, West Pit and the South <br />Proposed Decision and Findings of Compliance August 2013 <br />Partial Phase I Bond Release SL -07 Page 4 <br />