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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 Coordinating Center <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202 <br />Re: Colowyo Coal Mine (Permit No. C-1981-019) <br />Bond Release Application No. 4 (SL-4) <br />Dear Mr. Fulton: <br />COLORADO <br />D I V I S I ON 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 I and II Bond Release for the Colowyo Mine. <br />The Bond Release application is for lands reclaimed between 1993 and 2003 in the East Pit, West Pit <br />and Section 16 Pit. Colowyo is requesting a Phase I Release for 494.2 acres and a Phase II Release for <br />432.7 acres. Colowyo is not requesting a monetary release for the Phase I areas, only a release in <br />liability for backfilling and grading work and drainage reestablishment. Colowyo is requesting the <br />release of $2,197,198.00 for the Phase II areas for topsoil replacement and reestablishment of <br />vegetation. The Division will review the Bond Release application and the applicable areas to <br />determine if the Phase I and Phase II Bond Release criteria have been met. Based on the Divisions <br />review, the Bond Release acreages and liability may be adjusted. The surface ownership is Federal, <br />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 C1981019 JRS 08122010122150.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand junction • Durango Active and Inactive Mines