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Green group pushes for review of alleged self-bonding violations in 2 coal mines

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Green group pushes for review of alleged self-bonding violations in 2 coal mines

Environmental group WildEarth Guardians is pushing for another look at Tri-State Generation and Transmission Association Inc.'s alleged violations of the Surface Mining Control and Reclamation Act related to self-bonding assurances at the Colowyo mine in Colorado and Dry Fork mine in Wyoming.

The group initially filed a citizen complaint and request for inspection with the U.S. Office of Surface Mining Reclamation and Enforcement, or OSMRE, on April 2 alleging Tri-State's regulatory violations in implementing its self-bonding of coal mining operations in Colorado and Wyoming. The company is the full or partial guarantor for self-bonds at four coal mines: the Colowyo, New Horizon and New Horizon North mines in Colorado, and the Dry Fork mine in Wyoming. Tri-State self-bonds more than $120 million in total.

Jeffrey Fleischman, the Denver field division chief for OSMRE’s Western Regional Office, on May 16, declined to inspect and take enforcement action, stating that WildEarth's complaint gave "no reason to believe a violation of SMCRA, federal regulations, or the federally approved Colorado or Wyoming coal regulatory programs is occurring."

WildEarth responded by filing a request for an informal review with the Western Regional Director of OSMRE of Fleischman's decision on June 8, focusing on the Colowyo and Dry Fork mines, which are the only two still producing. The advocacy group cited several reasons why Fleischman's decision should be reversed, including the allegation that it violated Surface Mining Control and Reclamation Act regulations.

The group claims that Fleischman's review of its complaint was not up to par with regulatory standards and should be reversed. WildEarth pointed out that although Tri-State has been authorized to rely on self-bonds to guarantee its reclamation obligations for the four mines, the company has no tangible financial commitment backing its self-bonds. In its initial complaint, the group noted that Tri-State reports that it only has a little more than $53 million in total reclamation liabilities for all of its assets, which is less than the $120 million supposedly bonded for its coal mine reclamation.

"Tri-State is self-bonded in word only ... there is no real financial assurance that any bonding amount can or will be satisfied in the event of forfeiture. Regardless of whether Tri-State meets the criteria for self-bonding, if the company has made a disingenuous financial commitment with regards to its self-bonds, it is contrary to SMCRA." WildEarth argue that this should have triggered an inspection and compelled Fleischman to grant their request.

Additionally, the group pointed out that a request for informal review can only be sustained if a person demonstrates that they are or "may be adversely affected by a coal exploration or surface coal mining and reclamation operation." WildEarth stated that as a nonprofit incorporated in the State of New Mexico, the group meets the definition of a "person" under OSMRE’s regulations, and "person having an interest which is or may be adversely affected" requirement to sustain an informal review.