HomeMy WebLinkAbout20092884.tiffSTATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: (303) 866-3567
FAX: (303) 832-8106
October 20, 2009
Mary Ann Feuerstein
Weld County Clerk and Recorder
County Clerk
918 10th St
Greeley, CO 80631
Re: Keenesburg Strip Mine (Permit No. C-1981-028)
Bond Release Application No. 4 (SL -4)
Dear Weld County Clerk and Recorder:
COLORADO
DIVISION OF
RECLAMATION
MINING
- &-
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Colorado Division of Reclamation, Mining and Safety requests that you maintain the enclosed
"Proposed Decision and Findings of Compliance" for the Keenesburg Strip Mine on file for public
review for sixty (60) days.
If you have questions or need additional information, please contact me. Thank you for your
cooperation.
Sincerely,
Enclosure
inns
ental Protection Specialist
C -S1. -IS 01911102/1 JHB_ nC0200909060?. doc
'o ft, / )
2009-2884
Office of
Denver • Grand Junction • Durango Active and Inactive Mines
Office of
Mined Land Reclamation
COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY
1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567
COAL MINING PERMIT - BOND RELEASE DECISION
Keenesburg Strip Mine, Coors Energy Company
Permit No. C-1981-028
The Division of Reclamation, Mining and Safety has proposed the decision stated below. Provided there
are no objections, the decision will become final in accordance with the requirements of Rule 3.03.2(5)(b).
Bond Release No. 4
Submittal Date: March 16, 2009
Decision: Approve
Decision Date: October 19, 2009
Description of Release: Request for Phase III Bond Release on 165.29 Reclaimed Acres
REVISED INFORMATION
APPLICATION PAGES MAPS/EXHIBITS
CHANGE IN
ACREAGE
Disturbed:
Affected:
Permit:
State:
Federal:
Private:
0.00
0.00
0.00
0.00
0.00
0.00
REVISED
TOTAL ACREAGE
Disturbed:
Affected:
Permit:
State:
Federal:
Private:
439.00
439.00
612.50
0.00
0.00
612.50
PERFORMANCE BOND
Prior Liability:
Change in Liability:
Revised Liability
Bond Held
$2,289,771.00
($167,911.00)
$2,121,860.00
$2,327,437.00
DIVISION OF RECLAMATION, MINING AND SAFETY
Authorized Representative U
Date:
/0/7i( /off
C -SLOB
t.
Phase III Bond Release and Bond Reduction
Proposed Decision
and
Findings of Compliance
for the
Keenesburg Strip Mine
SL4 and SRI_
PERMIT NUMBER C-1981-028
Division of Reclamation, Mining and Safety
1313 Sherman Street, Room 215
Denver, CO 80203
303-866-3567
Loretta E. Pineda, Acting Director
Prepared by
Janet H. Binns
Environmental Protection Specialist
October 19, 2009
Introduction
This document is the proposed decision of the Colorado Division of Minerals and Geology (the Division) in
response to a request for Phase III bond release for a portion of the Keenesburg Strip Mine, Division permit
number C-1981-028. The Division file number for the bond release application is SL4. The application
was submitted to the Division on March 16, 2009. After receipt of proof of publication of a public notice in
a newspaper of local distribution near the mine (Rule 3.03.2(1)(b)), the application was deemed complete
on May 8, 2009. The bond release inspection was conducted on May 14, 2009.
The package contains five parts. These include: 1) procedures and summary of the bond reduction and
bond release processes; 2) criteria and schedule for bond release; 3) observations and findings of the
Division regarding compliance with the bond release requirements of the Colorado Surface Coal Mining
and Reclamation Act and regulations promulgated thereunder; 4) the Division's proposed decision
regarding bon reduction in accordance with Rule 3.02.2(4) and 5) the Division's proposed decision on the
request for bond release.
Detailed information about the review process can be found in the Act and the Regulations of the Colorado
Mined Land Reclamation Board for Coal Mining. All Rules referenced within this document are contained
within the Regulations. Detailed information about the mining and reclamation operations can be found in
the permit application on file at the Division offices, located at 1313 Sherman Street, Room 215, in Denver,
Colorado.
The Keenesburg Strip Mine is a surface mine which is permitted and operated by Coors Energy Company.
The Keenesburg Strip Mine permit area covers approximately 610.86 acres. The total approved disturbed
area is 439.00 acres. The bond release area consists of seventeen (17) parcels totaling 165.29 acres. The
ownership of the land for which bond release has been requested is private. The coal mined from the
requested area was owned privately and by the State of Colorado. Reclamation for which bond release has
been requested was conducted in 1985, 1986, 1987, 1995, and 1997.
C1981-028, SL4
2 10/19/2009
I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS
Coors Energy Company applied for a final bond release (Phase III) on a portion of the Keenesburg
Strip Mine, consisting of 165.29 acres, that has been reclaimed in accordance with the Colorado
Surface Coal Mining and Reclamation Act. The mine is located in Weld County, in all or portions
of Sections 2 and 11, T2N, R64W; and Sections 25 and 36, T3N, R64W; 6th Principal Meridian.
The mine area is located in:
Township 3 North, Range 64 West
Sections 25 and 36
Coors Energy Company (CEC) has previously requested and been approved for three bond releases.
Bond release SLI was approved on August 11, 1998 for Phase Ion 179 acres and Phase 11 on 111
acres. Bond release SL 1 released $1,787,113.00 of the reclamation bond.
A second bond release, SL2, was approved August 31, 2005. Bond release SL2 approved Phase I
release on 51.76 acres. The Division approved $287,918.00 for release from the reclamation
liability for ten (10) reclamation parcels included in the request.
A third bond release application, SL3, was approved on April 18, 2006. Bond release SL3 was a
Phase II bond release. The Division approved the release of $130,189.80 of the reclamation bond
for Phase II bond release on ten (10) reclamation parcels.
The Division approved a permit renewal (RN5) on October 27, 2006. The estimated cost for
completing the remaining reclamation tasks at the time of RN5 was $2,327,437.00.
A midterm review (MT5) of the permit and reclamation liability was conducted on May 1, 2009 in
accordance with Rule 2.08.3. At the time of the MT5 review, the Division determined the revised
cost to complete remaining reclamation and maintenance tasks at the Keenesburg Mine was
$2,172,953.00.
Following the Division's midterm review, but prior to the proposed decision for SL4, the Division
updated costs associated with reclamation tasks (CIRCES cost estimating program) in August 2009.
Prior to the SL4 proposed decision, the Division updated the reclamation cost estimate using the
August 2009 updated costs, and determined the cost to complete remaining reclamation tasks was
$2,289,771.00. Because the amount is $37,666.00 less than the $2,327,437.00 calculated in
conjunction with RN5, CEC is eligible for a Bond Reduction (SRI) in the amount of $37,666.00.
The Division received Coors Energy Company's application for a final (Phase III) bond release
(SL4) on a 165.29 -acre portion of the reclaimed area on March 16, 2009. Following four
consecutive weeks of publication of the public notice in the Fort Lupton Press, the application was
deemed complete on May 8, 2009. The Division conducted a bond release inspection on May 14,
2009. The site inspection was conducted in accordance with Rule 3.03.2(2). Persons at the bond
release inspection included Mr. Don MacDonald and Mr. Danny Kipp, representing Coors Energy
Company, and Janet Binns of the Colorado Division of Reclamation, Mining and Safety. The
surface ownership of the property included in the bond release area is privately owned by Coors
C1981-028, SL4
3 10/19/2009
Energy Company.
Colorado Depart tent of Public Health and Environment, Hazardous Materials Waste Management
Division, Solid Waste Unit (CDPHE-SWU) was notified of the SL4 bond release application. On
October 19, 2009, Mr. Jerry Henderson of CDPHE-SWU stated in a phone conversation, that
representatives of the Solid Waste Unit did not need or desire to inspect the bond release areas at the
Keenesburg Mine prior to the Division's proposed decision.
Weld County Depatttuent of Public Health and Environment was also notified of the SL4 bond
release application. During a telephone conversation with Mr. Troy Swain of Weld County
Department of Public Health and Environment, Solid Waste on September 24, 2009, Mr. Swain
stated that Weld County Department of Public Health and Environment, does not wish to inspect
the Keenesburg Mine with regards to the SL4 bond release. He also noted that the Colorado
Department of Public Health and Environment, Hazardous Materials Waste Management Division,
Solid Waste Unit (CDPHE-SWU) would assess whether or not additional financial assurance was
necessary on areas receiving final bond release by the DRMS. According to Mr. Swain, any
additional financial assurance on DRMS bond -released areas would be held by the CDPHE-SWU,
and not Weld County Public Health and Environment, Solid Waste.
II. CRITERIA AND SCHEDULE FOR BOND RELEASE
PHASE I
Rule 3.03.1(2)(a) states, "Up to sixty percent of the applicable bond amount shall be released when
the permittee successfully completes backfilling, regrading, and drainage control in accordance with
the approved reclamation plan." With regard to Phase I bond release, the approved reclamation plan
for the Keenesburg Strip Mine calls for backfilling mine pits to the approximate original contour
(permit page 113). All parcels included in SL4 (1, 3, 4, 8, 11, 12, 13, 14, 17, 18, 20, 21, 22, 24, 26,
27, and 28) have previously received Phase I bond release approval.
PHASE II
Rule 3.03.1(2)(b) states, "Up to eighty-five percent of the applicable bond amount shall be released
upon the establishment of vegetation which supports the approved postmining land use and which
meets the approved success standard for cover... based on statistically valid data collected during a
single year of the liability period". In regard to Phase II bond release, Rule 3.03.1(3)(b) also states,
"No more than sixty (60) percent of the bond shall be released so long as the lands to which the
release would be applicable are contributing suspended solids to streatnflow or runoff outside the
permit area in excess of pre -mining levels as determined by baseline data or in excess of levels
determined on adjacent non -mined areas".
The approved reclamation plan is found in Section 2.05.4 of the permit application. The required
topsoil replacement thickness is two (2) feet. The approved post -mining land use is rangeland. The
Dugout Pond, perimeter ditches, and Pond 2 have been approved to remain as permanent structures.
All parcels included in SL4 (1, 3, 4, 8, 11, 12, 13, 14, 17, 18, 20, 21, 22, 24, 26, 27, and 28) have
C1981-028, SL4
4 10/19/2009
previously received Phase II bond release.
The Division has previously made the findings required by Rule 3.03.1(3)(b) regarding suspended
solids and erosional stability of the reclaimed parcels (SL1 and SL3).
PHASE III
Rule 3.03.1(2)(c) states that, "the remaining portion of the bond amount shall be released when the
pennittee has successfully completed all surface mining reclamation operations in accordance with
this approved reclamation plan, and the final inspection and procedures of 3.03.2 have been
satisfied. This shall not be before the expiration of the period specified for revegetation
responsibility in 3.02.3."
Rule 3.03.1(3)(e) states that, "When the permit includes an alternative postmining land use plan for
industrial or commercial, or residential use, approved pursuant to 4.16.3, the Division shall require
the maintenance of bond coverage throughout the applicable liability period, sufficient for the
Division to achieve compliance with the standards for revegetation applicable to the pre -mining
land use under 4.15, in the event the alternative postmining land use is not developed in the event of
bond forfeiture."
An industrial post -mining land use was approved (Technical Revisions TR36 and TR39) for
development of gas wells, support facilities and roads pertinent to oil and gas development in
parcels 11, 12, and 20 (which are subject to this bond release application) and parcel 19 (which is
not subject to this bond release application). Gas wells and/or support facilities and roads were
developed in 2006 and 2008 in these parcels. A surface use agreement between the operator and the
gas company was provided to the Division that defines the gas company's commitment to final
reclamation of these well sites and ancillary facilities. At the time of the May 14, 2009 SL4 bond
release inspection, three (3) gas pads and wells had been constructed, fenced, seeded with a
stabilizing seed mix, and were being regularly accessed by gas company representatives.
Construction of access roads and ancillary facilities adjacent to the gas wells had been conducted as
well.
Rule 3.03.2(2) requires bond release inspections and evaluations to consider the results of
inspections and monitoring conducted pursuant to Rule 4.05.13 and 5.02, the degree of difficulty to
complete any remaining reclamation, and whether pollution of surface or subsurface water is
occurring, the probability of such pollution, and the estimated cost of abating such pollution.
III. OBSERVATIONS AND FINDINGS
Revegetation
Permit page 2.05.4-116b defines the required cover standard for the Keenesburg Strip Mine. The
permit states, "Reclaimed areas will be considered successfully reclaimed if the total vegetative
cover on the reclaimed area is not less than 90 percent of the predicted calculated cover value with
90 percent statistical confidence using the equation: y= 0.0173x3 — 0.8592/ + 14.562x — 47.015,
C1981-028, SL4
5 10/19/2009
where x is the cumulative value of precipitation from September to July of the following year, and y
is the resultant vegetation cover." This cover standard is in agreement with Rule 4.15.8.
The Keenesburg Mine permit had previously utilized comparison of an approved reference area
(Rule 4.15.7 (3)), known as the Osgood reference area, for revegetation success of the reclaimed
areas. Comparison to the Osgood reference area was not ideal due to a successional change of the
species composition in the reference area to a community heavily dominated by sand sagebrush and
a reduction of forage grasses and forb species over the years. A change in surface ownership of the
property upon which the reference area was located caused concerns regarding management of the
reference area. The permittee proposed revegetation success standards for vegetative cover and
herbaceous productivity based on a formula derived from historic data collected on the Osgood
reference area and a correlation to precipitation records (TR37, approved June 15, 2006).
Cover
Vegetative cover data was collected in August 2007 and in September 2008 in accordance with the
methods described on permit page 116, and reported in the 2007 and 2008 Annual Reclamation
Reports. Precipitation is measured by CEC at the weather station located near the mine office.
Precipitation measured between September 2006 and July 2007 totaled 15.00 inches. Calculation of
the required vegetative cover standard for 2007 using 15.00 inches of precipitation resulted in the
reclamation success cover value of 36.45%. Ninety percent of this calculated value is 32.81%.
Precipitation from September 2007 through July 2008 measured only 7.95 inches. Portions of
Colorado, including the Keenesburg area, experienced an unusually dry precipitation year in 2008.
Early parts of the growing season were very dry, with precipitation occurring at the latter portions of
the growing season when many plants were at the end of the growth cycle. The vegetative cover
success standard for 2008 was calculated to be 23.13% total vegetative cover. Ninety percent of the
2008 cover value is 20.82%.
The permittee sampled the seventeen parcels as two bond release blocks (BRB) based upon date of
seeding. One block was comprised of parcels seeded between 1985, 1986, and 1987 (reclamation
areas 4, 11, 12, 13, 17, 20 and 22) [1985/1986/1987 BRB]. The second block was comprised of
parcels seeded between 1995 and 1997 (reclamation areas 1, 3, 8, 14, 18, 21, 24, 26, 27, and 28)
[ 1995/1997 BRB]. The result of vegetative cover sampling for the 1985/1986/1987 BRB in 2007
was a cover value of 60.80%. The 1985/1986/1987 BRB was sampled to adequacy in 2007, and the
measured cover exceeded the calculated vegetative cover standard for 2007 of 36.45%. The
1995/1997 BRB was sampled to adequacy in 2007, and the resulting cover was 61.40%. The
1995/1997 BRB exceeded the vegetative cover standard for 2007 of 36.45%.
Vegetative cover sampled on the 1985/1986/1987 BRB for 2008 was 63.20%. Vegetative cover
measured on the 1995/1997 BRB was 59.2% in 2008. Both of these blocks were sampled to
statistical adequacy and both bond release blocks exceeded the vegetative cover standard for 2008
of 23.13%.
C1981-028, SL4
6 10/19/2009
Production
Herbaceous productivity success is calculated using a formula derived from historic data collected
on the reference area and precipitation data (TR37). The formula for herbaceous production is
y=0.3749/ 2485 where x is the cumulative amount of precipitation from September to the following
July, and y is the total herbaceous production in grams per square meter (g/m2). The total
herbaceous production success criterion calculated for 2007 was 165.22 g/m2. The total herbaceous
production success criterion calculated for 2008 was 39.66 g/m2, as a result of the low measured
precipitation of 7.95 inches measured from September 2007 to July 2008.
The 1985/1986/1987 BRB herbaceous production measured in 2007 was 239.46 g/m2. This value
exceeded the 2007 calculated standard of 165.22 g/m2. The 1995/1997 BRB herbaceous production
measured in 2007 was 229.27 g/m2. This value exceeded the 2007 calculated standard as well.
Both bond release blocks were sampled to statistical adequacy during the 2007 sampling.
The 1985/1986/1987 BRB herbaceous productivity was sampled to statistical adequacy in 2008 and
measured 144.68 g/m2. This value is over three times the 2008 calculated standard of 39.66 g/m2 in
spite of the low precipitation year. The 1995/1997 BRB was also sampled to statistical adequacy in
2008 and herbaceous productivity was 174.86 g/m2. This value was over four times higher than the
calculated herbaceous productivity standard for 2008.
Species Diversity
The diversity standard for the Keenesburg Strip Mine is described on page 116b of the permit. As
stated on permit page 116b, the reclaimed community will have "at least four perennial species of
which three are warm season perennial grasses and one is a cool season perennial grass. No one
component of the above species shall comprise greater than 40% relative importance nor less than
3% relative importance." Relative importance is measured using relative cover. Relative cover is
defined as the vegetative cover contributed by individual species divided by total vegetative cover.
The 2007 vegetation sampling of the 1985/1986/1987 BRB identified eight plant species with
relative importance greater than 3%. No single species contributed greater than 40% relative
importance. The four species that fulfill the species diversity requirement for the 1985/1986/1987
BRB are Prairie Sandreed (24.1% relative importance, or r.i.), Mountain brome (15.53% r.i.), Blue
grama (9.37% r.i.), and Sand bluestem (7.5% r.i.). Of these species, Prairie sandreed, Blue grama,
and Sand bluestem are warm season grasses, while Mountain brome is a cool season perennial
grass. None of the species measured at greater than 3% relative importance are considered noxious
or prohibited plant species. The 2007 sampling event for the 1995/1997 BRB identified the top
four species in order of relative importance as Mountain brome (17.35% r.i.), Sand dropseed
(12.98% r.i.), Blue grama (11.66% r.i.), and Prairie sandreed (9.27% r.i.). Of these four species,
three are warm season perennial grasses and one is a cool season perennial grass.
During the 2008 vegetation sampling of the 1985/1986/1987 BRB, the four perennial plant species
with the highest relative importance were Mountain brome (32.11% r.i.), Blue grama (20.35% r.i.),
Prairie sandreed (11.40% r.i.), and Sand bluestem (7.19% r.i.). These four species met the
C1981-028, SL4
7 10/19/2009
requirement of three warm season perennial grass species and one cool season perennial grass. On
the 1995/1997 BRB, the 2008 vegetation sampling event recorded the four perennial plant species
with the highest relative importance as Prairie sandreed (19.14% r.i.), Mountain brome (18.60%
r.i.), Sand dropseed (18.60% r.i.), and Blue grama (11.45% r.i.). None of the species encountered in
the 2008 sampling on either bond release block with greater than 3 % relative importance were
considered noxious or prohibited species.
No woody species are required for bond release. Coors Energy Company has a noxious weed
management plan and actively implements it. Only one noxious weed species, Cheatgrass, was
encountered in the 2007 and 2008 vegetation sampling events. Cheatgrass (Bromus tectorum) is a
problem species throughout the western United States, though its presence in the reclaimed areas at
the Keenesburg Mine is minimal. Coors Energy Company actively uses fire management to control
Cheatgrass in the reclaimed areas. Cheatgrass is considered a noxious weed according to the
Colorado Noxious Weed Act, but is not considered mandatory for control (C list). The Weld
County weed control district list is the same as the State weed control list. As such, Cheatgrass is a
C list species not requiring mandatory control. Coors Energy Company weed management efforts
are acceptable as demonstrated by the low proportion of noxious species present in the reclaimed
areas.
Industrial Land Use
Three oil and gas development wells, along with roads and supports facilities, were previously
permitted in parcels 8, 11, 12, and 20 within the SL4 bond release area, as well as in parcels 7, 9, 10,
19, which are not included in this bond release application. These wells, roads, and facilities were
permitted as an industrial post -mining land -use. The operator has a surface use agreement with the
gas development company, requiring the gas company to manage, maintain and conduct final
reclamation of the gas well pads, access roads and associated oil and gas development facilities. The
wells and/or their facilities are located within parcels 7, 8, 9, 10, 11, 12, 19 and 20 and total 11.15
acres. Only parcels 8, 11, 12 and 20 are subject to this bond release application, and the acreage
associated with oil and gas well, roads, etc. in these three parcels is 9.83 acres. These three oil and
gas development wells and their associated industrial post -mining land use were approved with
Technical Revisions TR36 and TR39. The wells and associated facilities have been installed and
fenced, and a stabilization seed mix planted by the oil and gas company. The Division finds that the
industrial land use has been implemented on the 9.83 acres encompassing these three oil and gas
wells, and meets the requirements of Rule 4.15.10(2).
Revegetation Summary and Conclusions
Based upon a review of the mine permit, the applicant's bond release application, and site
inspections, the Division finds that Coors Energy Company has established vegetation in
accordance with the approved reclamation plan. Coors Energy Company has established vegetation
which supports the approved post mine land use and meets the approved success standards for
vegetative cover, vegetative productivity, and species diversity.
C1981-028, SL4
8 10/19/2009
Water Quality Impacts
The operator submits a surface and groundwater report to the Division annually. The Division's
review of the annual hydrology reports concludes that the areas under consideration for bond release
are not contributing suspended solids to streamflow or runoff outside the permit area in excess of
premining conditions. Sediment pond No. 2 and the dugout pond at the Keenesburg Strip Mine
have not discharged in many years. Both sediment pond No. 2 and the dugout pond were
previously approved to remain as permanent structures (TR32 and TR28). The Division determined
during previous Phase II bond release reviews that runoff from the bond release areas were not
contributing additional suspended solids outside of the permit area.
The Division finds that there have been no adverse effects to groundwater down gradient of the
permit area. The Division concluded the Keenesburg Mine does not have the potential to
negatively impact ground water and has not required establishment of a groundwater point of
compliance (Memo to 2004 AHR file, dated July 6, 2005). If coal spoil leachate or ash leachate
migrated from the pit through eolian sand, Ennis alluvium or the Laramie sandstone, coal
attenuation and dispersion would result in levels of total dissolved solids (TDS) and sodium
adsorption ratio (SAR) in ground water that would be near pre -mining conditions within a few
hundred feet of the Keenesburg Mine pits. Monitoring of groundwater quality in the down
gradient wells from the reclaimed pits found the 2008 TDS values were well below the pre -
mining levels. The Probable Hydrologic Consequences section of the permit application predicts
no appreciable impacts to the hydrologic balance. Monitoring data in the hydrology reports
confirm this prediction. No impacts to groundwater have been found in down gradient
groundwater monitoring wells. Based upon this information, the Division finds that with regard
to bond release application SL4, pollution of surface water and subsurface water is not occurring
and the probability of such pollution occurring is low.
Surety Reduction (SR1)
The Division determined the reclamation liability for the Keenesburg Mine prior to this bond
release application at $2,327,437.00 (Permit Renewal No. 5). The Division updated some of its
equipment costs in August 2009. Update of the reclamation liability costs on September 28, 2009
using the updated equipment costs changed the cost to complete remaining reclamation work at the
Keenesburg Strip Mine prior approval for SL4 to $2,289,771.00. The Division thus holds an excess
of $37,666.00 in liability bond over the amount required to be held by the Division for remaining
reclamation and maintenance on the Keenesburg Strip Mine. The Division proposes, with SRI
(Surety Reduction No. 1), to reduce the reclamation liability by $37,666.00 based upon this current
reclamation cost estimate. (Rule 3.02.2(4))
Coors Energy Company was notified on October 13, 2009 of the proposed surety reduction. In
accordance with Rule 3.02.2(4)(a), CEC was provided the opportunity to request an informal
conference regarding the surety reduction. On October 15, 2009, CEC responded via electronic
mail that they did not want an informal conference.
C1981-028, SL4
9 10/19/2009
IV. PROPOSED DECISION
Based on the observations above, the Division proposes to approve Coors Energy Company's
request for a Phase III bond release for the Keenesburg Strip Mine. This proposed decision will
release the applicant from remaining liability on bond release blocks 1985/1986/1987 BRB and
1995/1997 BRB in accordance with Rule 3.03.1(2)(b). The Phase III bond release applies to 165.29
acres consisting of parcels 1, 3, 4, 8, 11, 12, 13, 14, 17, 18, 20, 21, 22, 24, 26, 27, and28. Of the
165.9 acres, the 9.83 acres that have been approved for industrial post -mining land use in the SL4
bond release blocks (in parcels 8, 11, 12, and 20) will be managed by the oil and gas development
lease holder. Coors Energy Company is released of liability for these 9.83 industrial use acres.
PHASE III
The original performance bond for the Keenesburg Strip Mine was $4,402,022.00. During
evaluation of SL1, the Division determined at that time that $335,378.00 of the bond was attributed
to structural demolition costs. Removal of the structural demolition costs resulted in an "applicable
bond amount" of $4,066,644.00. The Division released $1,787,113.00 (including $121,823.00 for
structural demolition) upon approval of SL1 (a Phase VII bond release), and $146,955.00 upon
approval of SL2 (a Phase I bond release), in accordance with Rules 3.03.1(2)(a) and (b).
Applying Rule 3.03.1(2)(c), up to an additional 15% of the "applicable bond amount" can be
released from areas that have previously received Phase I bond release. The Division in SL3
redefined the original bond amount of $4,402,022.00 to be the "applicable bond amount" for
determining bond release, with no subtraction of structural demolition costs prior to calculating
Phase 1/IVIII liability release values.
The total disturbed acreage reported in the 2008 Annual Reclamation Report by Coors Energy
Company is 437.69 acres. The Division calculates the amount eligible for Phase III bond release on
165.29 acres as follows:
Phase release
Acres released
Reclamation
liability
Original applicable
liability amount
$4,402,022.00
SL1
I and II
179 (PI) & 111(PII)
-$1,787,113.00
TR32
(bond reduction)
I & II tasks
4.5
-$27,384.00
MT4
+$140,963.00
SL2
I
51.76
-$287,918.00
SL3
II
53.9
-$130,189.80
RN5
+17,056.80
SRI
-$37,666.00
SL4
III
165.29
-$167,911.00
Remaining liability
amount
$2,121,860.00
C1981-028, SL4
10
10/19/2009
Coors Energy Company requested bond release of $249,331.00. The Division is limited by Rule
3.03.1(2)(c) to release no more than $249,331.00. The Division has estimated the cost to complete
remaining reclamation tasks and maintenance following the proposed approval of SL4 to be
$2,121,860.00. Rule 3.03.1(3)(d) requires that adequate bond be retained to allow the Division to
conduct any remaining reclamation tasks in the event that the Division takes over the permit. Based
on the Division's estimate of remaining liability and the Division's observations of reclamation
success, the Division proposes to release $167,911.00 (costs associated with Phase III revegetation
tasks) of Phase III reclamation liability. The remaining bond of $2,121,860.00 shall be sufficient to
assure completion of the remaining reclamation work at the site if the work had to be performed by
the Division, including the cost of reestablishing vegetation on any revegetated areas should those
areas fail.
Reclamation work which remains to be done at the site includes completion of backfill and grading
of the remaining portions of Pit B; ripping and regrading of interior access roads; topsoil
replacement on Pit B regraded areas, spoil pile footprint, and regraded access roads and seeding of
all topsoiled areas; grading and seeding of topsoil stockpile footprints; and structural demolition of
facilities area. Details of the Keenesburg Mine's reclamation plan may be found in Section 2.05.4
(p. 113) of the permit. Pond 2, the Dugout Pond, and the East and West perimeter diversion ditches
are approved to remain permanently.
Any person with a valid legal interest which might be adversely affected by this proposed decision
may request a formal public hearing before the Mined Land Reclamation Board in accordance with
Rule 3.03.2(6). Public notice of this proposed decision will be published once per week for two
weeks in the Fort Lupton Press as soon as possible. Requests for public hearing must be submitted
to the Division in writing within thirty days of the first publication in the Fort Lupton Press. If no
hearing is requested within thirty days, the Division's proposed decision will become final.
C1981-028, SL4
11 10/19/2009
Hello