2009-12-02_REVISION - C1981033

• Permit No: C1981033
• IBM Index Class Name: REVISION
• Doc Date: 12/2/2009
• Doc Name: Partial Phase One Bond Release Reclamation Cost Estimate
• From: Susan Burgmaier
• To: Joe Dudash
• Type & Sequence: SL4
• Email Name: JJD
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 8020 3
Phone: [phone] ^2?i
FAX: [phone] T
J
December 2, 2009
To: Joe Dudash
From: Susan Burgmaier
Re: Bear No. 3 Mine, Permit No. C-1981-033, Bear Coal Company
SL-4, Partial Phase One Bond Release, Reclamation Cost Estimate
COLORADO
D IV IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
Per your request, I have prepared a cost estimate for Bear Coal Company's (BCC) Bear No. 3 Mine bond
release request. You informed me that, based on your site inspection, BCC has completed the
reclamation tasks for which they are requesting release, and that you will be issuing a proposed decision
to approve their request.
The operator has not requested Phase I bond release on the entire disturbance area, so the proposed
release amount is less than the maximum release allowable by Rule 3.03.1(2)(a)). In accordance with
Rule 3.03.1(2)(a), up to sixty percent of the applicable bond shall be released when the permittee
successfully completes backfilling, regrading, and drainage control in accordance with the approved
reclamation plan; up to eighty five percent shall be released upon the establishment of vegetation which
supports the postmining land use and meets the approved revegetation success standards (Rule
3.03.1(2)(b)); and the remaining reclamation bond may be released at the end of the revegetation
responsibility period and when the permittee has successfully completed reclamation operations in
accordance with the approved reclamation plan (Rule 3.03.1(2)(c)).
Maximum Release Minimum Retention
Initial Liability $279,224.00
Phase 1 $167,534.40 $111,689.60
Phase II $69,806.00 $41,883.60
Phase III $41,883.60 $0.00
For the Bear Mine, the reclamation liability for the entire site was estimated in 2007 to be $279,224.00.
Based on this original liability figure, maximum release amounts by rule are shown on the above table.
Rule 3.03.1(2)(d) prohibits the Division from releasing any bond in excess of that required to complete
remaining reclamation work required by the approved reclamation plan. Accordingly, I have
recalculated the estimated costs for remaining reclamation tasks using current equipment, materials,
and labor costs. I estimate the reclamation costs for the remaining reclamation liability at the site, if
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