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~.~. <br />IN REPLY REFf0. TO: <br />United States Department of the Interior <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />P.O. Box 46667 <br />Denver, Colorado 80201-6667 <br />March 8, 2007 <br /> <br />i~NR 112001 <br />Mr. Dave Berry, Progam Supervisor Diws~.,l of Reclamation, <br />Mutiny and Safety <br />Division of Mining, Reclamation and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Dear Mr. Berry: ~ - <br />By letter dated February 12, 2007, we required you to submit information on how <br />Colorado could meet the requirement for its regulatory progam to be consistent with 30 <br />CFR 817.121(c)(5). Our letter asked for either a proposed amendment or a description of <br />an amendment and timetable for submission. 30 CFR 817.121(c)(5) requires, if <br />subsidence-related material damage occurs to land, structures, or facilities protected <br />under 30 CFR 817.121, the regulatory authority must require the permittee to post <br />additional performance bond in the amount of the estimated repair costs or diminution in <br />value. Our letter was pursuant to 30 CFR 732.17, which addresses required progam <br />amendments and was result of the recent complaint alleging subsidence damage caused <br />by Basin Resources' (Basin) Golden Eagle Mine. Colorado could also respond with an <br />explanation of existing authority consistent with 30 CFR 817.121(c)(5). <br />By letter dated February 15, 2007, you responded that the federal requirement to bond for <br />subsidence-related material damage can be implemented through existing Colorado Act <br />and regulations. You stated that additional legislation or rulemaking is not needed at this <br />time. Subsequent to your response to OSM you notified Basin by letter dated Mazch 2, <br />2007, that additional bond must be posted for the subsidence damage compensation. <br />Your notice to Basin initiated the bond adjustment process specified in State rule <br />3.02.2(4)(a). <br />We agee with your determination that the Federal requirement to bond for subsidence- <br />related material damage can be implemented through existing Colorado Act and <br />TAKE PRIDE®~~~ <br />~NAMERiCA--~ <br />