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~. <br />• CHIMNEY ROCK COAL III ~~~~~~~I~~~~~ ~~~ .R / <br />105 East Klowa, Suite 200 • Colorado Springs, Colorado • 80903 • (303) 475-7005 <br />August 23, 1982 '•`-~` „ <br />'- ~ ;~ ~i <br />.4~G 2-' 1982 <br />Mr. Fred Banta rPAIP1E~r l ~'~''U ~~ECL,!1~ggTfCiV <br />Coal Supervisor -' ~~?'.. ~~ `'mural <br />Mined Land Reclamation Division f~.50C!rc@~ <br />1313 Sherman Street, Room 423 <br />Denver, CO 80203 <br />Re: Chimney Rock Coal Bonding Estimate <br />Dear Mr. Banta: <br />The bond estimate enclosed is the result of an investigation <br />which utilized independent surveys of the current mine and <br />spoil areas to accurately evaluate material volumes. The use <br />of numerous cross-sections representing pre-mine, current and <br />current bonded conditions were used to interpret the survey <br />data and evaluate a logical state of conditions should <br />reclamation, pursuant to a bonded condition, be necessary. <br />The previous use of a worst case situation in which typical <br />pit cross-sections were used to identify approximate material <br />volumes is a logical and practical technique which reflects <br />the true purpose of the bonding requirements. The require- <br />ment to bond for post-mining conditions is an unsound <br />practice in that it requires a total swollen volume of <br />material resulting from the removal of a natural resource. <br />This swollen volume would not be present without the removal <br />of the resource, hence bonding for post-mine conditions would <br />imply the added disturbance associated with a completed <br />mining operation. Should Chimney Rock Coal cease mining <br />operations and option to default on the bonded money, the <br />Mined Land Reclamation Board would use the bond to contract <br />for reclamation operations, and not the completion of the <br />mining operation so as to achieve a post-mine contour. It is <br />thus CRC's opinion that the enclosed bond revision, which <br />depicts the volume of material to be handled such that a <br />useful reclaimed contour can exist, is sufficient supporting <br />evidence to validate our revised bond amount of $126,486.70. <br />This revised amount is a 15 percent increase over the <br />original estimate using typical condition criteria. <br />The procedure used to determine the volumes incorporates the <br />use of 8 cross-sections approximately 150•feet apart. Pre- <br />mine and current mine profiles are shown along with the <br />