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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />March 10, 2016 <br />Jerry Nettleton <br />Twentymile Coal, LLC. <br />29515 Routt County Road 27 <br />Oak Creek, CO 80467 <br />RE: Foidel Creek Mine; C-1982-056; Proposed Bond Adjustment <br />SI -02; Informal Conference Date and CIRCES Update <br />Dear Mr. Nettleton, <br />As we discussed via e-mail, the informal conference for the proposed bond adjustment (SI -02) will be held on <br />Wednesday March 30, 2016 at l lam. The meeting will be held at the Colorado Division of Reclamation <br />Mining and Safety's (Division) office and as you indicated, you may attend in person or by conference can. <br />Also, based on our conversation at the site during the March 2 and 3, 2016 inspection, I have reviewed the <br />cost estimate provided with SI -02 to determine if it took into account the approval of the Phase I bond release <br />application SL -01, that was issued on September 4, 2013. Based on my review there were several tasks <br />remaining in the SI -02 estimate that were released with the approval of SL -01 (Tasks 011, 015 and 017). <br />Also, there were several structures in the structure demolition tasks (Task 190) associated with the Fish Creek <br />Tipple that could be removed. Given this, Tasks 011, 015 and 017 have been removed and Task 190 has <br />been revised to account for these discrepancies. <br />However, while reviewing the items discussed above, it was discovered that the SI -02 estimate did not take <br />into account the additional liability required to spread cover material and topsoil for the second phase of the <br />Coal Refuse Disposal Area. The liability associated with these tasks (Tasks 134 and 146) were revised with <br />the approval of permit renewal #6, (RN -06). Given this, these tasks were updated to include this liability. <br />Based on the items discussed above, the Division has calculated the reclamation cost for the site to be <br />$10,630,019.16. This amount is $573,930.16 more than the actual bond held for the mine and is <br />$685,389.01 more than the current liability set for the site. Attached is an update Cost Summary Sheet <br />and new task sheets for Tasks 134, 146, and 190. <br />If you have any questions feel free to contact me at (303) 866-3567, extension 8120. <br />Sincerely, <br />pp,�C6&K_ <br />Jared Ebert <br />Environmental Protection Specialist <br />QF GQ�Q <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director * * 1g76 <br />