nm3clol-public/Amys_Drop_Box/Golden Pond Gob Pile Project/Golden Pond Agreement Signed 12518/README.md

---
type: document
title: Golden Pond Agreement Signed 12518
file: ../Golden Pond Agreement Signed 12518.pdf
tags:
  - Amys_Drop_Box
  - Golden Pond Gob Pile Project
docDate: 2018-12-05
contentType: application/pdf
contentLength: 1475236
sha256sum: 55013419f0e1e6baa16a01240ac5a4b3b105f13ce7db27c6877027c65b7ef417
sha1sum: 7b69c3847ec5af403e6075451aac0bc20a3fa88a
---

Contract No.
AGREEMENT
BETWEEN
THE COMMONWEALTH OF VIRGINIA
AND
Russell County Reclamation, LLC
‘This agreement, made and entered into this 5" day of December 2018, by and between the
Commonwealth of Virginia, acting by and through the Department of Mines, Minerals and Energy,
Division of Mined Land Reclamation (hereinafter called “DMME”), and Russell County
Reclamation, LLC (hereinafter called “COMPANY");
WITNESSETH:

WHEREAS, DMME is the agency of the Commonwealth of Virginia delegated the duties
and powers to implement and enforce the Virginia Coal Surface Control and Reclamation Act of
1979, Va. Code §§ 45.1-226 et seq., and the regulations promulgated thereunder (herein
“VSMCRA”), as the same may be or become effective at any time or from time to time, as the
Commonwealth’s permanent state regulatory program and abandoned mine reclamation program
approved pursuant to the federal Surface Mining Control and Reclamation Act of 1977. (herein
“State Program”);

WHEREAS, as part of its State Program, DMME has an approved abandoned mine land
reclamation program (herein “AML Program") as codified in Va. Code §§ 45.1-260 et seq. The
AML Program requires DMME to annually prepare and submit to the United States Secretary of
Interior applications for funding, including the implementation of specific AML reclamation
projects;

WHEREAS, past coal mining practices located off State Route 615, along Dumps Creek,

south of South Clinchfield in Russell County, Virginia, have resulted in a gob pile, which is known




as the Golden Pond Gob Pile Removal Project (herein “Project”). The property upon which the
Project is located (“Property”) is an abandoned mine land site, more specifically defined in
Attachment A, Item D, and the Project has been approved for reclamation as part of DMME’s
FY2018 AML Consolidated Grant.

WHEREAS, the surface estate of the Property is owned by Russell County Reclamation,
LLC.

WHEREAS, the DMME has determined that the incidental removal of coal during the
reclamation of the Project site is likely. Pursuant to Va. Code § 45.1-253.2 of VSMCRA and § 4
VAC 25-130 Part 707 of the VSMCRA Regulations, the VSMCRA permitting requirements do not
apply to areas from which coal is extracted as an incidental part of a government-financed
construction operation, and because AML reclamation projects such as the Project are government-
financed, they likewise qualify as government-financed construction.

WHEREAS, the COMPANY desires to perform the reclamation of the Project site in
accordance with reclamation plans approved by DMME; provided, however, that the COMPANY
is allowed to retain all proceeds it receives from the sale of the incidental coal it removes during
said reclamation,

WHEREAS, the DMME desires to have the COMPANY perform the work required to
reclaim the Project site in accordance with approved reclamation plans; with the understanding that
the COMPANY will be entitled to retain the proceeds it receives from the sale of the incidental
coal it removes during said reclamation (“AML Award”).

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants

hereinafter contained, the parties agree as follows:




L

OBLIGATIONS OF COMPANY - COMPANY shall:

Prepare and provide to DMME a reclamation plan for the Project which provides
for the stabilization of slopes and revegetation of the disturbed areas within the
boundaries of the Project site (“Reclamation Plan”).

Allow the DMME to review and comment on the Reclamation Plan, and incorporate
DMME’s changes into the final Reclamation Plan prior to the COMPANY’s
implementation of same. A copy of the final Reclamation Plan approved by DMME
is attached as Attachment C, which Plan is incorporated herein and made a part
hereof.

Strictly adhere to the Office of Surface Mining (“OSM”) AML funding objectives
contained in Attachment A hereto and made a part hereof, the AML Award, and the
obligations of the COMPANY contained within this Agreement (herein “Award
Conditions”).

Prior to commencement of reclamation work as contemplated by the Reclamation
Plan, provide to DMME a performance bond in the amount of two hundred thousand

dollars, ($200,000.00), payable to the Commonwealth of Virginia, Director-

Di

sion of Mined Land Reclamation, in a form acceptable to DMME.

Provide and pay all funds required to reclaim the Project site in accordance with the
approved Reclamation Plan, including but not limited to the costs of all permits,
licenses, land acquisitions, rights-of-way, easements, and construction and

reclamation costs, pursuant to the Award Conditions. The financial contribution of




10.

Ml.

DMME to the project construction budget is duly noted in the environmental
assessment document and is made part of this agreement.

Maintain on the Project site all information required by 4 VAC 25-130-707.12
including a description of the Project, the exact location and boundaries of the
Project, that the coal removed is physically necessary to remove in order to perform
the reclamation of the Project site in accordance with the Reclamation Plan, and that
the DMME administration of the Project is being financed with federal funds
through its FY2018 AML Consolidated Grant.

Only allow coal to be removed that is incidental to the Project.

Prior to commencement of reclamation of the Project site, ensure that the
Reclamation Plan and any reclamation documents and/or addenda, amendments, and
change orders thereto are in accordance with the Award Conditions. Any
amendments or change orders to the Reclamation Plan and/or reclamation
documents shall be approved in writing by DMME prior to their execution, issuance
and/or implementation.

Provide to DMME copies of all documents and addenda the COMPANY uses in
contracting for the performance of reclamation work for the Project, if any.

Afford DMME personnel notice of and opportunity to attend and participate in all
pre-construction conferences, and other relevant meetings concerning the Project, if
any.

Provide for free and reasonable access by DMME and OSM personnel to the Project

site for the purpose of conducting weekly, or more frequent if necessary, inspections.




12.

13.

14.

15.

16.

17,

18,

Upon completion of the work required by the Reclamation Plan, provide DMME
with a copy of “as built” drawings of the Project.

Designate a Project Director who shall be knowledgeable of and responsible for
Project activities and who shall act as the contact between DMME and
COMPANY.

Provide DMME with monthly progress reports within fifteen (15) days following
the end of each calendar month after this Agreement is fully executed. The report
shall include all work accomplished, difficulties or delays encountered along with
necessary remedial actions(s), and a schedule of future work.

Provide to DMME written verification that all easements, licenses, and applicable
federal, state, or local permits or clearances required for the performance of the work
required to complete the Project have been obtained prior to start of any work on the
Project.

Provide professional supervision of all reclamation/construction work performed in
reclaiming the Project site to ensure that the completed work conforms to the
approved Reclamation Plan.

Certify and acknowledge that the Projects boundaries and limits are as delineated
on Attachment A, and that no work outside said boundaries and limits shall be
eligible through the AML AWARD or covered under the terms of this Agreement.
Provide proof to DMME that the COMPANY has in full force and effect during
the terms of this Agreement a public liability insurance policy.

(a) Worker's Compensation ~ Statutory requirements and benefits. Coverage is

compulsory for employers of three or more employees, to include the employer.




19.

Contractors who fail to notify the Commonwealth of increases in the number of
employees that change their workers’ compensation requirements und the Code of
Virginia during the course of the CONTRACT shall be in noncompliance with the
contract.
(b) Employers Liability - $100,000.
(c) Commercial General Liability - $1,000,000 per occurrence and $2,000,000
in the aggregate. Commercial General Liability is to include bodily injury and
property damage, personal injury and advertising injury, products and completed
operations coverage. The Commonwealth of Virginia shall be added as an
additional insured to the policy by an endorsement. Coverage shall not exclude
claims resulting from explosion, collapse or underground damage.

(d) Automobile Liability - $1,000,000 combined single limit (required only if a
motor vehicle not owned by the Commonwealth is to be used in the CONTRACT).
SUBRECIPIENT must assure that the required coverage is maintained by the
SUBRECIPIENT (or third party of such motor vehicle).

The policy must provide for personal injury and property damage protection in an
amount adequate to compensate any person injured or any property damaged as a
result of the reclamation operations to the extent such person is entitled to be
‘compensated under the applicable provisions of Virginia law. Minimum insurance
coverage under split limit for bodily injury and property damage shall be
$1,000,000.00 for each occurrence and $2,000,000.00 aggregate. Minimum

insurance coverage for bodily injury and property damage combined shall be




20.

2i.

22.

23.

24.

25.

$1,000,000 for each occurrence and $2,000,000 aggregate. The COMPANY is to
name DMME as an additional insured on its liability insurance policy.

The COMPANY shall indemnify, defend and hold harmless DMME, its agents,
officers, employees, and designated representatives from any claims, damages, suits,
actions, liabilities and costs of any nature or kind, whether at law or in equity, arising
from or caused by performance by the COMPANY or its agents, whether for design
or reclamation of the Project, or from the use of any materials, goods, or equipment
of any kind or nature or any service of any kind, provided that such liability is not
attributable to the sole negligence of the DMME. Nothing contained herein shall
be deemed an expressed or implied waiver of the sovereign immunity of the
DMME.

Neither the COMPANY, its officers, agents, employees, assignees, whether for
design or reclamation of the Project, shall be deemed employees of the
Commonwealth of Virginia or of DMME by virtue of the Project, the location of
the Project, or the AML AWARD.

Upon completion of any audit of the Project conducted under OMB Circular A-128,
promptly provide the DMME with a copy of any and all such audit reports.
Commit to no contract or contract extension whose performance could extend
beyond March 31, 2021, the expiration date of the AML Award.

Agree to not let the project be idled for a cumulative period exceeding sixty (60)
days and to return work forces and equipment upon request of DMME at the end of
the sixty-day period. COMPANY’s failure to perform this part may result in
termination of the agreement and default under Articles X and XI.
ANTI-DISCRIMINATION




A During the performance of this AGREEMENT, the COMPANY agrees as

follows:

1.

The COMPANY will not, and will require that its Contractors not,
discriminate against any employee or applicant for employment
because of race, religion, color, sex, national origin or disabilities,
except where religion, sex, or national origin is a bona fide
occupational qualification reasonably necessary to the normal
operation of the COMPANY or its Contractor exists. The
COMPANY agrees to, and will require its Contractors to, post in
conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this
nondiscrimination clause.

The COMPANY, in all solicit:

sor advertisements for
employees placed by or on behalf of the COMPANY or its
Contractors, will state, and require that its Contractors state, that such
COMPANY or Contractor is an equal opportunity employer.

Notices, advertisements and solicitations placed in accordance with
federal law, rule or regulation shall be deemed sufficient for the

purpose of meeting the requirements of this Section.

B. The COMPANY and its Contractors will include the provisions of the

foregoing paragraphs 24.A.1; 24.A.2; and 24.A.3 in every subcontract or

purchase order over $10,000, so that the provisions will be binding upon

each subcontractor or vendor.




nif

10.

CERTIFICATIONS: The COMPANY certifies to the DMME that it is, to the
best of its knowledge and belief, in compliance, and will continue in compliance,
and it will require that its Contractors conform, to the following Acts, as amended:

State and Local Government Conflict of Interests Act;

General Assembly Conflict of Interests Act;

Virginia Freedom of Information Act;

Virginia Fair Employment Contracting Act;

Virginia Governmental Frauds Act;

Virginia Public Procurement Act;

Virginians with Disabilities Act;

Americans with Disabilities Act;

Federal Immigration Reform and Control act of 1986; and

Federal statutes relating to nondiscrimination, including but not limited to:

Title VI of the Civil Rights Act of 1964 (P.L. 88-352) (prohibits discrimination on
the basis of race, color or national origin);

Title IX of the Education amendments of 1972, as amended (20 U.S.C. Sections
1681-1683, and 1685-1686) prohibits discrimination on the basis of sex;

Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C., Section 794)
prohibits discrimination on the basis of handicaps;

The Age Discrimination Act of 1975, as amended (42 U.S.C., Sections 6101-6107)

which prohibits discrimination on the basis of age;




12.

The Drug Abuse Office and Treatment Act of 1972 (P-L. 93-255), as
amended, relating to non-discrimination on the basis of drug abuse;

The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and
Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination
on the basis of alcohol abuse or alcoholism:

Sections 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C., 290 dd-
3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse
patient records;

Title VIII of the Civil Rights Act of 1968 (42 U.S.C., Section 3601 et seq.),
as amended, relating to nondiscrimination in the sale, rental or financing of housing;
and/or

Any other nondiscrimination provisions in the specific statute(s) under
which application for Federal assistance is being made, and the requirement on any
other nondisctimination statute(s) which may apply to the AML AWARD or this
Agreement.

Federal Lobbying Act, 31 U.S.C.A., Section 1352 (entitled, “Limitation on use of
appropriated funds to influence certain Federal contracting and financial
transactions, and the Virginia Lobbying Disclosure and Regulation Act, Sec. 2.1-
779 through 2.1-794, Code of Virginia, 1950 as amended, including, without
limitation, obtaining and delivering to the DMME all necessary certifications and
disclosures.

Title Il and III of the Uniform Relocation Assistance and Real Property Acquisition

Policies Act of 1970 (P.L. 91-646) which provides for fair and equitable treatment




13.

14.

15.

16.

of persons displaced or whose property is acquired as a result of Federal and
federally assisted programs. These requirements apply to all interest in real property
acquired for Project purposes regardless of Federal participation in purchases.
Hatch Act (5 U.S.C., Sections 1501-1508 and 7324-7328) which limit the political
activities of employees whose principal employment activities are funded in whole
or in part with Federal funds.

Copeland Act (40 U.S.C., Section 276c and 18 U.S.C., Section 874), the Contract
Work Hours and Safety Standards Act (40 U.S.C., Sections 327-333) regarding
labor standards for federally assisted construction sub-agreements.

Flood insurance purchase requirements of Section 102(a) of the Flood Disaster
Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood
hazard area to participate in the program and to purchase flood insurance if the total
cost of insurable construction and acquisition is $10,000 or more.
Environmental standards which may be prescribed pursuant to the following:

)

institution of environmental quality control measures under the National

Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514;

(b) notification of violating facilities pursuant to EO 11738; (c) protection of
wetlands pursuant to EO 11990; (d) evaluation of flood hazards in flood plains in
accordance with EO 11988: (e) assurance of Project’s consistency with the approved
State management program developed under the Coastal Zone Management Act of
1972 (16 U.S.C., Sections 1451 et seq,); (f) conformity of Federal actions to State
(Clean Air) Implementation Plans under Section 176 (c) of the Clean Air Act of

1955, as amended (42 U.S.C., Section 7401 et seq.); (g) protection of underground




17.

18.

19.

sources of drinking water under the Safe Drinking Water Act of 1974, as amended,
(P.L. 93-523); and (h) protection of endangered species under the Endangered
Species Act of 1973, as amended, (P.L. 93-205).

Wild and Scenic Rivers Act of 1968 (16 U.S.C., Sections 1271 et seq.) related to
protecting components or potential components of the national wild and scenic
rivers system.

‘The COMPANY shall assist the DMME in assuring compliance with Section 106
of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO
11593 (identification and preservation of historic properties), and the
Archaeological and Historic Preservation Act of 1974 (16 U.S.C. 469a-I et seq.).
40 CFR 122-EPA Storm Water Regulations; PL 92-500, Section 404 — Utility
Crossings of Navigable Waters — U.S. Army Corps of Engineers; Code of Virginia,
Title 10.1, Chapter 5, Article 4 - Erosion and Sediment Control Law ~ Soil and
Water Conservation Commission; VR 625-02-00 - Erosion and Sediment Control
Regulations; Code of Virginia, Title 62.1, Chapter 3.1, Article 44 - State Water
Control Law; VR 680-15-02 — Virginia Water Protection Permit; Code of Virginia,

Title 62.1, Chapter 3 - Sub-aqueous Bed Permit — Marine Resources Commission.

OBLIGATION OF DMME

DMME will:

Review and submit to the COMPANY comments on the Reclamation Plan to

monitor adherence to AML Award conditions and obligations.




Provide administration of the Project, document the costs and expenses incurred by
DMME, document the findings necessary to qualify the Project as a government
financed construction project as contemplated by Va. Code § 45.1-253.2 and 4 VAC
25-130 Part 707 of VSMCRA, including those costs noted in the NEPA document.
Document eligibility of the Project for funding by securing an Authorization to
Proceed from the federal Office of Surface Mining.

Designate a Project Inspector to monitor the site and to serve as contact to the

COMPANY.

Provide the COMPANY with consultations and information that are available and
reasonably required for Project purposes.

Contract to have trees planted on the site following COMPANY’s excavation,
backfilling, grading, and seeding.

Release COMPANY’s bond upon the successful completion of the PROJECT.

SAFETY INSPECTIONS OF CONTRACTOR EQUIPMENT ON JOB SITE:
DMME reserves the right to conduct safety inspections of contractor and/or sub-
contractor owned/or leased equipment delivered to or present at an AML
construction site. DMME shall conduct a pre-construction safety inspection of all
equipment at the site as identified on the equipment list for the project as provided
by the contractor. If any previously unidentified equipment is delivered to the site
for use, the contractor shall contact the Inspector/Contract Administrator to conduct
a safety inspection of that equipment prior to its use. ‘The agency may also conduct
equipment safety inspections at any time during the contract period while the

equipment is on site. Inspections shall be in accordance with established DMME

13




Iv.

Vil.

inspection criteria and evidenced by a safety inspection checklist (see attachment).
DMME requires that the contractor perform a daily pre-shift inspection of all
equipment prior to its use each day. DMME can provide a template of the Surface
Equipment Inspection Pre-operational Exam Checklist upon request.
TERM OF AGREEMENT
This Agreement shall be effective as of the _Sth day of December 2018 and shall
expire on March 31, 2021.
FINANCIALICOMPLIANCE RECORDS AVAILABILITY
The COMPANY agrees to retain and provide reasonable access to all books,
records, and other documents relative to this Agreement for five (5) years after final
payment or until audited by the Commonwealth of Virginia and the OSM, whichever is
later. DMME, its authorized agents, and/or State and Federal auditors shall have full access
to and the right to examine any of said materials during said period at reasonable times and
upon 24 hours advance notice.
CONSTRUCTION ASSURANCES
‘The COMPANY hereby assures and certifies that they shall comply with the laws,
regulations, policies, guidelines and requirements, including OMB Circulars No. A-95, A-
102, and FMC 74-4, as they relate to the application, acceptance and use of Federal funds
for this federally assisted Project. Also, the COMPANY gives assurance and certifies that:
1. The COMPANY shall cause work on the Project to be commenced within a
reasonable time after NOTIFICATION TO PROCEED from the DMME and that

the COMPANY will prosecute the Project to completion with reasonable




diligence. The COMPANY will keep the DMME informed of Project progress
and delays.

2. The COMPANY shall not dispose of or encumber its title or other interests in

Property, including the Project, and facilities located thereon during the period of
Federal interest or while the Government holds bonds, whichever is the longer.

3. During the term of this Agreement, the COMPANY shall not dispose of, modify
the use of, or change the terms of the real property title, or other interest in the
Property, including the Project, and facilities without permission and instructions
from the DMME. The COMPANY shall record the federal interest in the title of
Property in accordance with DMME directives and shall include a covenant in the
title of real property acquired in whole or in part with Federal assistance funds to

assure nondiscrimination during the useful life of the Project.

VIII. EXECUTION OF AGREEMENT
This Agreement shall be executed on behalf of the COMPANY by such person or
persons as are authorized to act on behalf of the COMPANY pursuant to law, and on behalf

of the DMME by the Deputy Director of the Department of Mines, Minerals and Energy.

OBLIGATION TO COMPLETE
If the delivery of supplies, services, materials or equipment is not fully performed in

accordance with the terms of the contract by the time specified in the contract, the contractor




Ix.

agrees to complete the remaining or incomplete work at its own expense; except that the
accomplishment be delayed by any act, negligence, or default on the part of the
Commonwealth or OSM, public enemy, war, embargo, fire, explosion or Act of God
(including without limitation, adverse weather conditions) not caused by the negligence or
intentional act of the contractor o his supplier(s), or by riot, sabotage, or labor trouble that
results from a cause or causes entirely beyond the control or fault of the contractor or his
supplier(s), a reasonable extension of time as the procuring public body deems appropriate
may be granted. Upon receipt of a written request and justification for an extension from
the contractor, the purchasing office, with the approval of the Deputy Director, may extend
the time by issuing a Change Order for performance of the contract or delivery of goods

herein specified at the purchasing office's sole discretion,

It shall also be known and understood by both parties that if the contract expires and the
delivery of supplies, services, materials or equipment has not been fully performed in
accordance with the terms of the contract, it is determined the Commonwealth is not at fault,
and grant funding for the contract has expired, the contractor shall, at the contractor's sole
cost and expense, complete its obligations under the contract.
INTEGRATION AND MODIFICATION

This Agreement constitutes the entire understanding between the COMPANY and
DMME. No alteration, amendment or modification in the provisions of this Agreement

shall be effective unless it is reduced to writing, signed by the parties, and attached hereto.

16




Xi.

TERMINATION OF AGREEMENT

‘Any failure by a party to perform any obligation under this Agreement shall constitute a
breach of the Agreement. Upon breach of the Agreement by a party, the other party may,
at its option, declare its intention to terminate the Agreement unless the breach is cured by
the party breaching the Agreement. Such declaration shall be in writing to the party in
breach stating the intention to terminate, the reason(s) therefore and the action necessary to
cure the breach. Upon receipt of notice of intention to terminate, the party in breach shall
have 60 days to take the curative action and avoid termination. The DMME shall not be

obligated to pay for any services or work performed after the notice of intention to terminate.

DEFAULT

In case of COMPANY ’s failure to deliver goods or services in accordance with the
agreement terms and conditions, DMME, after due oral or written notice, may procure them
from other sources and hold the contractor responsible for any resulting additional purchases
and administrative cost. This remedy shall be in addition to any other remedies, which the
Commonwealth may have. The DMME may also act to forfeit COMPANY’s bond in

accordance with regulations promulgated under 45.1-247 of the Code.




XI.

NOTICE

Any notice required hereunder shall be made in writing to the applicable party at the

following addresses

DMME COMPANY
AML Projects Coordinator Russell County Reclamation, LLC
P.O. Drawer 900 2200 Lee Highway Suite A
Big Stone Gap, VA 24219 Bristol, VA 24202
Phone. 1-523-' Phone No. 276-669-7851

ADDITIONAL NOTIFICATIONS
TBA
TBA
TBA
TBA

For purposes of this Agreement, the notice shall be deemed received if mailed by certified
mail, return receipt requested to the above addresses on the date of the first notice of delivery
by the post office. Failure to pick up the notice in response to the notices of delivery shall

not constitute a defense to receipt hereunder.

18




- WAIVER CLAUSE

No review, approval, acceptance of nor payment for any of the services required by
DMME shall be construed to operate as a waiver of any rights of or any cause of action
arising out of the performance of the contract. Notwithstanding any contrary provision
contained herein, the COMPANY shall be and remain liable to the DMME for all costs of
any kind which are incurred by the DMME as a result of a negligent act, errors or omissions

of the COMPANY or its Contractor in the performance of any of the services furnished.

XIV. GOVERNING LAW
This Agreement shall be deemed executed in Wise County, Virginia, The execution,
interpretation and enforcement of this Agreement shall be governed by the laws of the

Commonwealth of Virginia without regard to any conflict of laws or principles.

XV. NON-APPROPRIATION
All contracts for products and services and all payment obligations under the AML
AWARD and this Agreement are subject to appropriated AML funds being available for
expenditure for that purpose. The DMME shall promptly notify the COMPANY of any
action denying such funding. In such event, any outstanding contract shall be cancelled
without further obligation to the extent the affected products or services have not yet been

duly delivered and accepted,

19




If any purchases are to be supported by federal funding, and such funding is not
made available, the DMME may terminate the contracts for goods or services which are so

dependent on such federal funds without further obligation.

XVI ENTIRE AGREEMENT
This Agreement incorporates and contains the entire agreement and understanding between
the parties, and there are no oral understandings, terms or conditions not herein recited, and
neither party has relied upon any representations, expressed or implied, not incorporated or

contained in this Agreement and its attachments.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly

authorized representatives as of the day and year first above written.

Russell County Reclamation, LLC COMMONWEALTH OF VIRGINIA

DEPT. OF MINES, MINERALS & ENERGY
BY; f= a 540

DIVISION OF MINED LAND RECLAMATION

Manager
(Title) (Title)
December 5. 2018 December 5, 2018
(Date) (Date)

20




ATTACHMENT A
GOLDEN POND GOB PILE REMOVAL PROJECT
Categorical Exclusion Determination (NEPA)
NEPA Consultation Letters
Safety Inspection Checklist

Plat of Property

21




9 9 B >

ATTACHMENT A
GO! IND GOB PILE REMOV.
Categorical Exclusion Determination (NEPA)
NEPA Consultation Letters
Safety Inspection Checklist

Plat of Property

ey




Categorical Exclusion Determination (NEPA)

2




Lith

Inia
Minds Miners ana Energy

CATEGORICAL EXCLUSION CERTIFICATION AND DETERMINATION

GOLDEN POND GOB REMOVAL PROJECT — SITE No. 18302
RUSSELL COUNTY, VIRGINIA
FY18 AML CONSOLIDATED GRANT

PREPARED BY:
COMMONWEALTH OF VIRGINIA
DEPARTMENT OF MINES, MINERALS AND ENERGY
DIVISION OF MINED LAND RECLAMATION

July 26, 2018




ABANDONED MINE LANDS.
CATEGORICAL EXCLUSION CERTIFICATION AND DETERMINATION

State: Virginia
Problem Area Number:_VA-0821 South Clinchfield
Project Name: Golden Pond Gob Pile Removal Project ~ Site No. 18302

‘ost Breakout by PAD:
VA-0821
32.0 AC P3 GO @ $1,774,080 AFS
‘otal GO: 32.0 AC P3 GO $10,000 ENH

VA-0821 Total Cost: $1,784,080

Total Project Cost: $1,784,080

The FY2018 Golden Pond Gob Pile Removal Project (Site No. 18302), is located off State Route
615, along Dumps Creek, south of South Clinchfield in Russell County, Virginia. Project area
mapping is comprised of a section of the Carbo USGS 7.5 Minute Quadrangle. The project
coordinates are 82° 10' 44,21"W and 36° 57' 38,77"N. The project area is contained within the
South Clinchfield Problem Area, VA-0821. Reclamation will include eliminating a Priority 3
Gob Pile (GO) that resulted from mining that occurred prior to August 3, 1977.

To accomplish the project, the DMME, DMLR will contract with a licensed contractor or
qualifying individual meeting the requirements of §45.1-261.1 of the Code of VA and the
regulations promulgated pursuant thereto, DMME’s financial contribution to the project is
estimated to be less than 50 percent of the project cost. This type and level of funding allows
DMME to consider the AML project as government-financed construction under §4 VAC 25-130
Part 707. The prospective contractor is Russell County Reclamation, LLC.

This AML enhancement construction will be governed by the OSM approved VA program
definition changes to the term "government-financed construction" (64 FR 72277-72280,
December 27, 1999), in conjunction with the OSM approved VA Abandoned Mine Land
Reclamation (AMLR) Plan revision that allows coal removal strictly incidental to AML hazard
abatement construction by contractors without a Title V permit, in order to offset Federal AML
reclamation costs (65 FR 1063-1065, January 7, 2000). Implementing the approved AML
enhancement provisions at this site will result in DMLR expending Federal AML funding only
for non-emergency AML administration costs, DMLR construction cost estimates showing this
Federal AML funding will involve less than 50% of the project costs. A construction project cost
of $1,784,080 is estimated to eliminate AML hazards consisting of 32 acres of Priority 3 Gob




The company will be required to implement effective sediment and dust control measures along
any roads and obtain any permits required by the Virginia Department of Transportation. The
contractor will also be required to maintain access roads to prevent tracking material onto state
roads. The contractor will submit proof it has obtained all necessary VDOT permits before
commencing any work and will be required to adhere to permit terms and conditions. The
contractor is required to have an approved ground control plan prior to commencing reclamation.

All work associated with the project is located in upland areas and no impacts to “Waters of the
ULS.”, as defined by the Code of Federal Regulations 40 CFR 230.3(s). Additionally, no impacts
to “Waters of the U.S.” will occur where the total drainage area equals or exceeds five (5.0)
square miles. If for any reason the scope of work is changed during the design process that
would result in impacts to “Waters of the U.S.”, the U.S. Army Corps of Engineers will be
contacted and all applicable regulatory permits obtained prior to performing the work.

DMLR will ensure the contractor strictly adheres to Virginia’s erosion and sediment control
provisions to prevent discharge of sediment to state waters and assure no provisions of VA's
State Water Quality Standards are violated. No work will begin until the contractor obtains
necessary permits, or documents that permits will not be required, from the Virginia Department
of Environmental Quality (DEQ) or the U. S. Army Corps of Engineers (USACE).

Within 60 days of initiation of work, the contractor is to employ at least one individual who has
obtained Virginia Department of Conservation and Recreation certification as a Responsible
Land Disturber. Sediment control measures may include installing filter fabric fences,
constructing weep berms, and routing runoff through sediment control structures within active
work areas. Where necessary to protect against erosion, the contractor will install riprap
channels, water socks, or other acceptable devices. Drainage will primarily be contained within
the structure. If necessary water may be pumped from the structure into sediment ponds
permitted under VDMLR permit 1302253. Any discharges from those structures will be required
to meet the NPDES standards for the permit.

Reclamation of the structure following gob removal will be addressed by the Project Reclaim.
Following complete gob pile removal, topsoil material will be obtained from areas approved
under Project Reclaim, if needed. Following any needed topsoiling and final grading, the
company will seed and mulch the areas with a seed mix certified weed-free of non-invasive
species selected from the revegetation species list agreed upon by the Division of Mined Land

Reclamation and the U. S. Fish and Wildlife Service as documented by letter dated June 21,
2000.

Personnel trained to conduct external portal surveys, for bat habitat suitability, from the Virginia
ion of Mined Land Reclamation (DMLR) have determined that there are no portals
associated with this reclamation project that will be effected. However, if portals are discovered
within the construction work limits during reclamation, DMLR will do the following: (1)
Conduct bat habitat studies; (2) Provide results to appropriate agencies; (3) If studies provide
data that would warrant bat closures, then DMLR will close the newly discovered portals with
the appropriately designed bat closure.





the implementation of and strict adherence to applicable state and local erosion and sediment
control/storm water management laws and regulations. Due to the legal status of several of the
species associated with this site, DCR also recommends coordination with the U.S. Fish and
Wildlife Service (USFWS) and VDGIF, Virginia's regulatory authority for the management and
protection of these species to ensure compliance with protected species legislation.

The Virginia Department of Environmental Quality (DEQ) - The Department of Environmental
Quality has no objections to the project provided that the applicant abides by all applicable state,
Federal, and local laws and regulations. Prior to construction, all permits and approvals must be
obtained, In general, development must incorporate features which prevent significant adverse
impacts on ambient air quality, water quality, wetlands, historic structures, fish wildlife, and species
of plants, animals, or insects listed by state agencies as rare, threatened, or endangered,

The Department of Historic Resources (DHR) ~ The Department of Historic Resources states
that. “Review of our inventory files shows that there are no recorded historic districts, structures or
archaeological sites within the project’s area of potential effects. In addition it is our opinion that
no further identification efforts are warranted. Based upon the documentation provided, we
recommend a finding of No Historic Properties Affected for the proposed reclamation project.”
DHR’s V-CRIS mapping shows no historic resources in the proposed project arcas.

The Natural Resources Conservation Service (NRCS) ~ The National Resources Conservation
Service responded that the proposed project addresses the basic NRCS environmental, erosion, and
sediment control concems. ‘The proposed reclamations also seem to conform closely to presently
practiced reclamation goals and standards. It is our position that these worthwhile projects should
be implemented.

The United States Army Corps of Engineers (USACE) — The United States Corps of Engineers
did not respond to the consultation letter.

The United States Fish and Wildlife Service (USFWS) ~ The United States Fish and Wildlife
Service responded that “We certify that use of the online project review process in strict
accordance with the instructions provided as documented in the enclosed project review package
results in reaching the appropriate determinations. Therefore, we concur with the “no effect” or
“not likely to adversely affect” determinations for proposed and listed species and proposed and
designated critical habitat; the “may affect” determination for Northern long-eared bat; and/or the
“no Eagle Act permit required” determinations for eagles. Additional coordination with this
office is not needed.”

The Virginia Department of Game and Inland Fisheries (VDGIF) ~ The Virginia Department
of Game and Inland Fisheries did not respond to the consultation request letter. VDGIF
databases were searched as a requirement of the USFWS online consultation.

The Virginia Marine Resources Commission (VMRO) — The Virginia Marine Resources
Commission noted that a permit may be required of the scope of work includes direct




YES RESPONSES REQUIRE SUBMISSION OF AN ENVIRONMENTAL ASSESSMENT

|. GENERAL EXCEPTIONS

Does the project specifically require an EA in 516
DM 6, Appendix 8, as specified in Item | of the
instructions? No (X) Yes( )

il. DEPARTMENT OF INTERIOR EXCEPTIONS

Will the project have any of the following:

A significant adverse effect on public health or safety? No (X) Yes( )
An adverse effect on any of the following unique
geographic characteristics? No (X) Yes ()
(.) Parks (State, Local, or National) (.) Wild or Scenic
Rivers
(.) Recreation or Refuge Lands () Wetlands
(.) Wilderness Areas () Floodplains
() Ecologically Significant or () Sole or Principal
Critical Areas Drinking Water
Aquifers

() Prime Farmlands
Highly controversial environmental effects? No (X) Yes( )

Highly uncertain and potentially significant
environmental effects or unique or unknown
environmental risks? No (X) Yes ()

A precedent for future action or a decision in
principle about future actions with potentially
significant environmental effects. No (X) Yes()




‘socioeconomics)
(.) Fish and Wildlife

V. RESPONSIBLE OFFICIAL CERTIFICATION

Signature: Lesa Baker Date: July 25, 2018

Lesa Baker
AML Project Coordinator

VI. OSM DETERMINATION

() This project conforms with the exclusion criteria in 516 DM 6,
Appendix 8, and is excluded from further NEPA compliance.

QO This project does not conform with the exclusion criteria in 516 DM 6,
Appendix 8, and requires an environmental assessment.

Signature:, Date:

Manager
Big Stone Gap Area Office




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Appendix B - NEPA Consultation Response Letters

i)

COMMONWEALTH of VIRGINIA
benuaest oF mowers
ros 1, ee =20 ——
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hw 15.2018

Lesa. Sater

‘aracne Nine Lane Coordinate

Deparment Mines, neat. snd Ener
‘Sonera 7”

Bg Se Gap, Vepmia 2210-0000

Re: AML Projects 02182

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‘be Dena Sutnkerce Emergency Project Raclrtaton mee erbung #2

Potals and ene hazardous equpmen and fates

e a “The project consists of
‘he corstusion of access roads, soslon and sedeert carl measures, excavation

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Fwd: Abandoned Mine Land Reclamation Project; Agency Consultations
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United States Department of the Interior | gf]
FISRAND WILDLIFE SERVICE
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Dae: o6c18
See-Cericain Letter
Project Nace: Golden Ped Gob Removal

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(© “omer deren for popena hined species nd cata
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19




©

COMMONWEALTH of VIRGINIA

Department of Historie Revources
an 2901 Kenaghn Arm, Richond, Vina 2221 ae

‘ay 2018

‘Lesa Bales, Abandoned Mise Land Coorfiaater
‘Deparment of Mines, Minerals and Eergy

0. Derwer 909

‘Big Some Gap, Virginia 2219-0600

‘Re: Geblen Pond Gob Removal FYB Peject No. 10902,
‘sel Couey. Vigan
DER Pie Ne. 30180512

Thank you for yur later of June 12.2018 reqaesing the Deperanent of istic Resoorcs’
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se do no het to crtct ne ope cheney Pv.

Since.





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COMMONWEALTH of VIRGINIA

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Appendix C - Certified Mail Receipts for Non-Responding Agencies

Please see the screen shot below for the request for comments from DCR, DEQ, DGIF, DHR,
ACOE, NRCS, USFWS, and VMRC.




Appendix D - Eligibility Letter

INSERT ELIGIBILITY DOCUMENT




Exhibit A - Location Map

GOLDEN POND GOB REMOVAL
‘PROJECT ~ SITE No. 18302
RUSSELL COUNTY, VIRGINIA
FYI8 AML CONSOLIDATED GRANT





Safety Inspection Checklist

24




ATTACHMENT B

A. AML Grant Funding Documents - FY2018

B Golden Pond Gob Pile Removal Project Budget - 0.00

Item No. Description Approximate Quantity Unit Cost Total
L Mobilization (not to exceed 10%) Sob LS. NA _O
2 Site Preparation Job LS. N/A _O_
3. Excavation Job LS. NA _O-
4, Erosion and Sediment Control Job LS. NA _O
3. Channel Construction Job LF S$N/A Qo
6. Revegetation Job LS. NA __O
Total construction estimate $000

25




‘Surface Equipment Inspection
Pre-operational exam checklist 17 07-18





“Surface Equipment Inspection
Pre-operational exam checklist 17 07-18

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ATTACHMENT C

A. Reclamation Plan

26




Appalachian
Technical
MAT: jervices, Inc.

September 19, 2018

ENGINEERING, ARCHITECTURE, SURVEYING & ENVIRONMENTAL SCIENCE

Lesa C. Baker

AML Proj. Coordinator

VA. Dept of Mines Minerals & Energy
3405 Mountain Empire Road

PO Box 900

Big Stone Gap, VA 24219

RE: Comments on Project Reclaim

Dear Mrs. Baker,

1. Please see revised narrative.
2. The fines narrative has been revised. The drawings have been modified.

3. The backfilling narrative has been updated. A section called “Compaction” has
been added.

4. The revision will be updated upon resubmittal. Please see revised narrative.

5. Please see revised bonding narrative.

Sincerely,
David Mullins, P.E.
P.O, Box 1897 ~ 475 West Main Sweat 0, Box 3637 6741 Indian Creek Road
‘Abingdon, Vignia 24212 Wis, Viginia 24203
‘Phone. (276) 676-4262 Phone: (276) 328-4200
Fax: (276) 623-8200 Fax (276) 228-4900

small abingcon@atsone.com E-mail wise@latsone com




Introduction:

Russell County Reclamation, LLC (RCR) proposes to remove fine refuse and replace it
with 330,000 cubic yards of material that is suitable for the development of an industrial pad.
This report details the work necessary to successfully complete this project. This report Is
based on the proposal submitted to and approved by OSM as “Project Reclaim”. RCR proposes
no deviation from that original proposal.

Fines Removal:

‘The 32 acre AML sites known as Golden Pond consists of approximately 25 acres of fines
and about 7 acres of associated areas such as the dike between the fines and Dumps Creek.

It is estimated that there is an approximately 500,000 cubic yards of fines in Golden
Pond, This is a just an estimate as it is not safe for equipment to travel on the fines. As such,
no drilling or exploration has been performed on the fines. An average 15 feet of depth has
been assumed, This was developed by plotting the bedrock elevation of Dumps Creek adjacent
to the pond. On the north end, Dumps Creek is about 8 feet below the fines level and on south
side, near the bridge, the fines are 20 plus feet above Dumps Creek. A backhoe has been used
to collect samples on the mid-south area adjacent to the access road, This hole went down 10-
12 feet and did hit bottom,

‘The fines will be removed in zones. These zones, (1,2,3 etc}, will contain subzones, (A,
B, Cetc), of approximately 8,000 cubic yards each. Two subzones may be worked concurrently.
The subzones will average 288 feet long based on an average depth of 15” of fines. The 8000
cubic yard number is conservative. As shown on the attached “Fines Removal and Backfill Plan”
drawing, the SO foot reach of the excavator is not vertical, The sides of the pond are not
vertical and the backfill (even at angle of repose) is not vertical. The actual “hole” would be
significantly less than 8000 cubic yards. The top 4 to 6 feet of fines are dry. This portion can
stand at near vertical for long periods (t 2 months). Due to the ellipsoid reach of the excavator,
the lower level of fines will be removed on an angle (see drawing). It is not anticipated that
‘more than 50 feet width will be disturbed at any given time. The fines will be removed by
excavator, backhoe or draglines. The fines will be loaded onto haul trucks and removed to the
adjacent RCR permit number 1302253. Here it will be spread for drying purposes and for
ultimate disposal. It is the intention of RCR to remove all fines that are technically practical and
can be safely removed. _Alllfines will be removed from the building area.

‘The fines will be removed beginning in zone 1. Generally, the removal will follow the
‘numerical sequence. Zones 4-9 will be the bullding pad area. Removal will then begin in zone
10 and work northerly until comple:

The main sump will be in zone 1. Zones 1, 2 and 3 will be backfilled and sloped to the
‘main sump.




Backfilling:

The backfilling of Golden Pond will proceed in zones as previously described, The
suitable material may come from several locations within the adjacent permit. This material
may be unscreened coarse refuse, screened refuse or shot material from borrow areas, Acid-
based analyses for the screened and unscreened refuse samptes are included in this package.
The shot material from the borrow areas has not been tested. The borrow areas are shown on
the attached drawing. The zones are shown on the attached map. Also included are cross
sections through Golden Pond,

Generally, backfilling will follow the numerical sequence. Zones 4-9 will be the building
pad, These areas will be backfilled using material that can best be compacted by the IDA when
the site is developed. The backfill of zones 4-9 will be to the grades shown on the attached
cross sections.

‘The upper part of the dike between Golden Pond and the former raw coal stockpile of
Permit 1302253 may be removed after zone 10 has been backfilled. This will allow the backfill
better to meet the existing grade of the raw coal area. This will also allow drainage from the
backfilled areas to flow to Ponds 2, outfall 002 of 1302253,

Compaction

‘As proposed and approved in Project Reclaim OSM application, Russell County
Reclamation, LLC proposed to “backfill” Golden Pond with up ta 330,000 cubic yards of
material, to create a “rough grade” site suitable for industrial recruitment. At this early time,
with no specific tenant, the IDA would not perform specific compaction on an area,
Compaction needs vary between tenants and / or buildings. The area will be turned over to the
IDA in the approximate “rough grade” as shown on the attached cross section.

The maximum building size for this area was projected to be 100,000 square feet. This
is a little over two acres. The remaining acres will be used as parking; laydown yards access
roads and storm water management. These areas need no particular compaction.

Finally, as the zones are backfilled, equipment (trucks, excavators, ete) will be routed
over the material. This will help compact the backfill.

Sediment Control:

A Main Sump will be developed in the first zone. It will remain the low area for the life
of the project. An additional low area in each zone may be developed to capture runoff or
water that may seep into the zone. Adjacent zones may use the same low area for drainage
control, Water may be pumped from the low areas in the fines to the Main Sump. If necessary,
water may be pumped from the main sump into RCR Permit Number 1302253’s Pond 2 series




which discharge as Outfall 002. This is being addressed in DMLR Application Number 1010465.
It is not anticipated that this will be a continual pumping operation. The Main Sump will tend
to clarify the water prior to pumping to Pond 2

‘Sudden Release:

The chance of a sudden release from Golden Pond without a catastrophic rain event is
small, Installing the drainage control as outlined previously will further reduce the likelihood of
a sudden release.

Bonding:

Each sub zone contains approximately 8,000 cuble yards of material, As previously
discussed this is a very conservative estimate. Up to two sub zones of fines can be completely
removed at any given time, Each subzone will contain approximately 8000 cubic yards. The
width is set at 50 feet due to the size of equipment. The length {average 288’) can be adjusted
based on actual depth of fines, (e.g. if fines are 20’deep, the length maybe limited to 216 feet)
Reclamation cost is based on bringing unscreened coarse refuse to backfill these two zones.
This material will be available to AML in the unlikely event ofa Bond Forfeiture

Backfill 8,000 cu yd X 2 subzonesX$6,25 = $100,000
Vegetation 23 acres @ $1,000 $ 23,000
Subtotal $123,000
Mobilization (6%) $7,380
Subtotal $130,380
Total Bond w/ DMLR/AML Multiplier $199,681 (round up to $200,000}

(x 15315378)




Z, - t/

Fines Removal and Backfill Plan
NTS.

3/19/2018] 01
aa OT
e74.12_N Typical
ae f= ——] 01
1 = 109

Golden Pond Reclamation Plan

VAR Russell County Reclamation, LLC
ec Serv

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iat i:





Appalachian Technical Services, Inc.
are Laboratory Services

47S West Main Street P.O. Box 1897 Abingdon VA 24212 (276)676-4262

CERTIFICATE OF ANALYSIS

Client: Russel County Reclamation, LLC Project No.:1674.01

2700 Lee Hiwy.,Suile A Sample ID: Gray Sandstone / Shale / Staining
Bristol, VA 24202 Date Sampled :12/5/2017 )
Sampled By: Client Consereened.

Acid-Base Accountability

LabID | Description | % % % Sultur Potential | Newbalization | Net Excess | Stake
Pyrite | Sulfate | Organic | Dry | Paste | Acidity | Potential — | Or Durability
Sulfur | Sulfur} Sulfur pH Deficiency ‘Index
Gray
1144 | Sandstone 0.07 | 7.2} 219 | 11.69 9.50 94.13
Shale

‘Units in Tens CaCO equivalent per 1000 tons of material





Appalachian Technical Services, Inc.
are Laboratory Services

475 West Main Street P.O. Box 1897 Abingdon VA 24212 (276)676-4262

CERTIFICATE OF ANALYSIS

Client: Russell County Reclamation, LLC Project No.:1674.01
2700 Lee Hwy.,Sulte A ‘Sample ID : Gray Sandstone ¢ screened 9)
Bristol, VA 24202 Date Sampled :12/5/2017
Sampled By: Client

Acid-Base Accountability

LabID | Description ‘h * % ‘Sulfur Potential | Neutralization | Net Excess ‘Stake
Sulfate | Organic | Ory | Paste | Adity | Potential | Or Durability
‘Sulfur | Sulfur | Sulfur pH Deficiency Index
Gray
1143 | Sandstone 0.06 | 7.4] 1.88 | 13.43 | 11.55 98.8

‘Uns Tons CaCO» equivalent per 1000 tons of material

Chad