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rQ��ENTOF`ry�` United States Department of the Interior \�) OFFICE OF SURFACE MINING Reclamation and Enforcement s� Western Region Office 4gCH 3, °f 1999 Broadway, Suite 3320 Denver, CO 80202 -3050 FEB b 2014 David Berry, Director Office of Mined Land Reclamation Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, CO 80203 -2273 SURFgCF M f �i9r /ON AND El+ MS \oN G M1N RE: Approval of SL -15 Partial Phase I Bond Release, Trapper Mine, Permit No. C -1981- 010, DRMS Proposed Decision and Findings of Compliance, January 10, 2014 Dear Mr. Berry, This letter acknowledges the Office of Surface Mining (OSM) Denver Field Division's (DFD) receipt and review of the above Phase I Bond Release Proposed Decision document prepared by the Division of Reclamation, Mining and Safety (DRMS) dated January 10, 2014. 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 I bond release applies to 120.4 acres within the Ashmore, Kimber, East Flintlock, and Flintlock pits (parcels A -B -13, Z -A -13, and K- A -13). The land within this application is Private and State, and the coal in SL -15 is Federal and State owned. OSM attended the bond release inspection on November 20, 2013. The BLM did not attend. By letter dated January 29, 2014 the BLM provided its concurrence with SL -15 (attached). OSM interprets the BLM's concurrence to mean that Trapper Mining, Inc. (TMI) is in compliance with all applicable BLM coal lease stipulations. Based on available documentation, OSM agrees with DRMS's determination that TMI has met or exceeded the requirements for Phase I bond release on the 120.4 acres of land as described above. The Division currently holds a performance bond in the amount of $30,173,724 for the Trapper Mine. The most recent bond cost calculation (2012) was estimated to be $29,990,889.69. The Division is concurrently processing another bond release application (SL -14), which would reduce the bond liability to $27,922,492.00. The Division now proposes to approve a reduction in reclamation liability of $520,670.46. No actual reduction in the bond amount is sought at this time. DRMS has determined that the remaining $27,401,821.54 in bond liability is sufficient to assure completion of the reclamation plan if the work had to be performed by the Board or