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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />August 12, 2010 <br />James Fulton <br />Office of Surface Mining <br />Western Regional Coordinatin); Center <br />1999 Broadway, Suite 3320 v <br />Denver, CO 80202 <br />Re: Colowyo Coal Mine (Permit No. C-1981-019) <br />Bond Release Application No. 5 (SL-5) <br />Dear Mr. Fulton: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Colowyo Coal Company L.P. has applied for a bond release at the Colowyo Coal Mine. The bond <br />release application was found complete by this Division on August 12, 2010. The Colowyo Coal <br />Company, LP (Colowyo) has submitted a partial Phase III Bond Release for the Colowyo Mine. The <br />Bond Release application is for lands reclaimed between 1978 and 1999 in the East Pit and West Pit. <br />Colowyo is requesting a release for 987.3 acres and $5,000,000.00 for the Phase III areas for the <br />successful completion of all reclamation operations in accordance with the approved reclamation plan. <br />The proposed Phase III Bond Release areas were approved for Phase II Bond Release on 25 September <br />1987 and 15 August 2001 (SL-01 and SL-03, respectively). The Division will review the Bond <br />Release application and the applicable areas to determine if the Phase III Bond Release criteria have <br />been met. Based on the Divisions review, the Bond Release acreages and liability may be adjusted. <br />The surface ownership is Federal, state and private, and the coal mined was Federal. <br />We will contact you to advise you of the Division's required bond release inspection of the site as soon <br />as it has been scheduled. A proposed decision on the application will be issued within sixty (60) days <br />of our inspection. <br />If you have questions or need additional information, please contact me. - <br />Sincerely, <br />James R. Stark <br />Environmental Protection Specialist <br />JRS/Ahd <br />C-SL-03 CI981019 JRS 08122010123953.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines