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<br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br /> <br />April 8, 2015 <br /> <br /> <br />Ron Thompson <br /> <br />New Elk Coal Company <br /> <br />122250 State Highway 12 <br /> <br />Weston, CO 81091 <br /> <br /> <br /> <br /> <br />RE: NOI X-2011-232-01 <br /> Bond Release Request (SL-1) <br />Adequacy Comments <br />Dear Mr. Thompson, <br />The Division received a request for release for Notice of Intents to Explore NOI X-2011-232-01. <br />Based on a review of the above referenced NOI, the Division has the following comments: <br />The Division currently holds a cash bond in the amount of $127,243.00 of which $127,242.88 is <br />required for remaining reclamation of the activities associated with the NOI. A total of 32 drill <br />holes were permitted to be drilled under this NOI. Holes NE-01-11 through NE-12-11 were <br />permitted under the original NOI; holes NE-13-11, NE-14-11, NE-15-11, NE-16-11 and NE-01-12 <br />through NE-16-12 were permitted under amendments to the NOI. Holes NE-16-11 and NE-01-12 <br />were added to the New Elk Mine permit No. C-1981-012 under Minor Revision No.s 96 and 107 <br />repectfully. According to the NOI and amended applications, hol-05-11, NE-06-11, NE-08- <br />11, NE-10-11, NE-02-12 and NE-03-12 were to be converted to monitoring wells. <br />The Division has received three 180-day reports and three Drill hole abandonment reports. <br />Based on the reports submitted holes NE-01-11 through NE-04-11; NE-06-11 and NE-07-11; NE- <br />09-11 through NE-16-11; NE-04-12, NE-07-12 and NE-14-12 have been drilled, abondoned and <br />reclaimed. Holes NE-05-11 and NE-08-11 have been converted to monitoring wells. The <br />Division has not received information with regard to permitted holes NE-02-12, NE-03-12, NE- <br />05-12, NE-06-12, NE-08-12 through NE-13-12, and NE-15-12 or NE-16-12. <br />Based on the review conducted of the current status of the NOI f <br />has the following comments: <br />-Please submit a 180-day report dtailing the current status of activities associated <br /> <br />the NOI, including the status of holes NE-02-12, NE-03-12, NE-05-12, NE-06-12, NE-08- <br />12 through NE-13-12, and NE-15-12 or NE-16-12. If these holes have not been drilled or <br />if it is the intention of NECC to not drill these holes, please state that in the report. <br />1313 Sherman Street, Room 215, Denver, CO 80203P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br /> <br />John W. Hickenlooper, Governor | Mike King, Executive Director <br />