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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: (30=1) 866-3567 <br />FAX: (303) 832-8106 <br />17 May 2011 <br />Mr. Tony Tennyson <br />Colowyo Coal Company, LP <br />5731 State Highway 13 <br />Meeker, CO 81641 <br />Re: Colowyo Mine C-1981-019 <br />Technical Revision 81 (TR-81) - Fourth Adequacy Letter <br />Dear Mr. Tennyson: <br />COLORADO <br />D I V I S I ON O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining and Safety (Division) has received the <br />Colowyo Coal Company, LP (Colowyo) responses to the Division's 25 February 2011 <br />third adequacy letter. The responses were dated 25 April 2011 and were received by the <br />Division on 26 April 2011. The Division has reviewed the Colowyo responses and has <br />the following questions and comments. Where applicable, the question numbers follow <br />the preliminary adequacy letter. <br />Rule 3.02.2 - Determination of Bond Amount <br />9. Colowyo has provided the requested maps and revised bond calculation pages. <br />The bond calculation, which is contained in Exhibits 13 and 13A for the main <br />mine area and the South Taylor expansion, respectively, has been combined into <br />one exhibit, Exhibit 13A. The Division has reviewed the bond calculation and <br />has the following questions. <br />a. On page Exh 13A-T1-1 Colowyo lists the volume of spoil required to backfill and <br />grade the East Pit. The total volume given is 1,306,675 LCY. In the previous <br />estimate the volume required to backfill and grade the East Pit was 7,662,000 <br />LCY. This is a decrease in volume of more than 6,300,000 LCY. Based on the <br />Division's digitizing of the 2010 ARR Exhibit 5A there is approximately 213 <br />acres of reclamation remaining in the East Pit (including the haul road corridor <br />that will become the upper reach of the Streeter Ditch). Based on the remaining <br />213 acres of backfill, the given volume of 1,306,675 LCY leads to an average fill <br />volume of less than four feet. In addition, there is no highwall dozing volume <br />(cut material) given or accounted for. This volume seems low for the remaining <br />reclamation work in the East Pit. Additionally, based on the bonding <br />requirements of Rule 3.02.2, Colowyo cannot receive any credit for backfilling <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines---A