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�I.,EtlTOFTf <br />United States Department of the Interior <br />P <br />OFFICE OF SURFACE MINING <br />Reclamation and linforcement <br />'. �aAA <br />'.q- C11 <br />Western Region Office <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202-3050 <br />JUL 15 2015 <br />Michael Boulay, Director <br />Office of Mined Land Reclamation <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203-2273 <br />O GOOF SURfiq�F� Z <br />NAND E <br />RECEIVED <br />JUL 2 0 2015 <br />DIVISION OF RECLAMATION, <br />MINING AND SAFETY <br />RE: Approval of SL -6 Partial Phase III Bond Release, West Ellc Mine, Permit No. C-1980- <br />007, DRMS Proposed Decision and Findings of Compliance, June 12, 2015 <br />Dear Mr. Boulay, <br />This letter acknowledges the Office of Surface Mining Reclamation and Enforcement (OSMRE), <br />Denver Field Division's (DFD) receipt and review of the above Phase III Bond Release Proposed <br />Decision document prepared by the Division of Reclamation Mining and Safety dated June 12, <br />2015. DFD agrees with the findings and decision document and hereby provides OSMRE <br />concurrence for the above bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 <br />CFR 906.30, Article IX, Section 24, of the State -Federal Cooperative Agreement. <br />DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado <br />regulatory program at Rule 3.03.2. <br />This Phase III bond release applies to 24.2 acres associated with the successful completion of all <br />surface coal mining reclamation operations in accordance ,vitli the approved reclamation plan oil <br />the Lone Pine facilities area, the Thermal Event area, and methane drainage well pads and roads <br />along the West Point Road. This land is federally owned and the coal mined was federally <br />owned. Reclamation for which the bond release has been requested was conducted between <br />1996 and 2002. <br />OSMRE participated in the bond release inspection on June 24, 2014. Tile U.S. Forest Service <br />(USFS) and the Bureau of Land Management (BLM) also participated in this inspection. By <br />letters dated July 1 and July 13, 2015, the USFS and BLM provided their concurrence with SL -6 <br />(attached). OSMRE interprets the BLM's concurrence to mean that Mountain Coal Company, <br />LLC (MCC) is in compliance with all applicable BLM coal lease stipulations. <br />Based on available documentation, OSMRE agrees with DRMS's determination that MCC has <br />met or exceeded the requirements for Phase III bond release on the 24.2 acres of land as <br />described above. The current reclamation liability at the West Elk Mine, prior to SL -06, is <br />$14,203,110.00, while the Division currently holds a performance bond in the form of two <br />corporate sureties in the amount of $15,000,000.00. The Division now proposes to release <br />$69,761.00 in bond liability and has determined that the remaining $14,133,349.00 in bond <br />