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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />7373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8706 <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- ~- <br />SAFETY <br />May 7, 2007 Bill Owens <br /> Governor <br />ROy ICazO Russell George <br />Seneca Coal Company Executive Direcor <br />P <br />O <br />Box 670 Ronald W. Cottony <br />. <br />. Division Director <br />Hayden, CO 81639 Natual Resource Trustee <br />Re: Seneca II Mine <br />Permit No. C-1980-005 <br />Bond Release Request (Pre-Law Area) <br />The Division of Reclamation, Mining, and Safety (Division) has reviewed the Seneca II <br />Draft Pre-Law Area Bond Release Request received May O1, 2007. We have the <br />following preliminary comments regarding the submittal. <br />We understand that SCC is in the process of developing a plan for the old Wolf <br />Creek Pit azea for grading work to establish positive drainage from the Wolf <br />Creek Pond and to stabilize erosion in the former pit. On page 4 of the Draft Pre- <br />Law Area Bond Release Request, SCC indicates that $307,951 could be withheld <br />for the 67.4 acres of Old Wolf Creek Pit from the $1,355,000 applied to pre-law <br />permit 75-54 in the Division's December 27, 2006 Findings. However, the <br />Division will need to see this plan before we can deem the draft bond release <br />application complete for the purposes of filing. The Division will use the plan to <br />verify an appropriate amount of money to be retained for the. final reclamation of <br />this pre-law azea that was excluded from the Phase I bond release conducted in <br />2006. <br />2: SCC is requesting full bond release on 259.1 acres in the Draft Pre-Law Area <br />Bond Release Request. In general we agree with the proposal to spread the bond <br />monies out over the entire Pre-Law area, as proposed in the draft application. The <br />259.1 acres proposed for full bond release were released from Phase I bond <br />liability in 2006. Final bond release should be attainable in the 259.1 acres of pre- <br />law lands once the Division has received appropriate documentation as described <br />below for deeming the application complete. <br />Page 3 of the application provides bond release documentation but this consists <br />solely of a review of the applicable reclamation law. Several Exhibits were also <br />submitted including apost-mine topography map and profile in Exhibits E and F, <br />respectively. At a minimum the following additional documentation is required. <br />Off ce of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />