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It is not unusual for the as -built road or pads to have minor variances from the proposal. To <br />correct this continual iterative process, each subsequent submittal of Map 2.05 -M1, Sheet 6 of 6, <br />General Facilities, Gobvent Boreholes serves to not only propose new roads and pad locations, <br />but it also corrects the past as-built location information. For example, a map proposal for Panel <br />17 boreholes would have updated the map relative to the as- builts for Panel 16. The fact that the <br />current map needs to be updated is not unusual. Due to the idleing of the mine, Oxbow did not <br />submit a Panel 19 GVB proposal and had not yet updated the panel 17/18 GVBs and mine <br />recovery gas and dewater borehole map as- builts. As we have discussed with Division personnel, <br />Oxbow believes the most appropriate time to update this map would have been to submit the <br />update with the 2014 Annual Reclamation Report (ARR), rather than include the map and <br />exhibit as an issue as part of this NOV. This was indeed our plan for the 2013 ARR. We <br />suggest the Division reconsider this particular NOV item for removal from the NOV. <br />Pad/road size: The issue seems to be pad size versus total disturbance. Oxbow has permitted <br />drill pads with estimated pad sizes up to 150' x 150'. A typical pad size were noted as we did not <br />know in advance how big the total disturbance would be. Topsoil salvage, tree removal, grade <br />and slope, USFS directions, etc. contribute to the uncertainty as to how large the total resultant <br />disturbance will be. When USFS personnel dictate where they wanted roads and pads roads built, <br />this leads to uncertain estimate of total disturbance. The Division also desires that we use an <br />average road width of 18'. We can easily concur with this request, but we believe raising this <br />issue to the level of the subject of an NOV is clearly inappropriate. Oxbow believes the <br />appropriate time to update the total acreage calculation is also with the ARR submittals, rather <br />than with an NOV. Oxbow believes including reference to the GVB pad and road total <br />disturbance as an NOV item is inappropriate and suggests a reconsideration in favor of <br />addressing the issues at the time of the ARR submittal. <br />Step 8. Abatement: Increase the Elk Creek Mine's liability to account for the additional <br />pad and road disturbances within 30 days. <br />Alleged Nature of Violation: Failure to provide the proper liability for drill pads and <br />light use roads. <br />Using a portable GPS and other information, the Division has surveyed the disturbed areas of <br />Panel 17, Panel 18 and mine recovery boreholes. Oxbow has obtained this information and, as <br />we have discussed throughout 2014, will include our own surveys to update the Exhibit 2.04 -E3, <br />Item 9 — Methane Drainage Well Information, Map 2.05 -M1, Sheet 6 of 6, General Facilities, <br />Gobvent Boreholes and the respective information in the ARR. Oxbow will also use an average <br />road width of 18' for acreage calculations. <br />The Division holds a $4.5 million Corporate Surety Bond. The latest calculated liability (MR- <br />105) is $4,339,954.55. As such, Oxbow has a current contingency of $160,045.45. Oxbow is <br />simply not under bonded! As the Division prepares the cost estimate, we request that the <br />Division prepare this revised liability estimate, and Oxbow will apply the additional cost to the <br />noted contingency. <br />• Page 4 <br />