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J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7T" STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX: (970) 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />April 28, 2016 <br />Mr. Brock Bowles <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80202 <br />Re: Snowcap Coal Company, Inc. <br />Order to Revise Permit — October 15, 2015 <br />Permit No. C-1981-041 <br />Dear Mr. Bowles: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />The Colorado Division of Reclamation, Mining and Safety (DRMS) issued an Order to Revise <br />Permit to Snowcap Coal Company, Inc. (SCC) on October 15, 2015. The Order directed SCC to <br />submit a Minor Revision (MR -82) to DRMS committing SCC to seven items. MR -82 was <br />submitted and DRMS issued their approval on December 21, 2015. Item 1 of the Order <br />committed SCC to conduct an investigation to determine the extent of the hydrologic <br />communication into the mine workings. SCC committed to provide a copy of the final investigation <br />report to DRMS by April 29, 2016. <br />An Electrical Resistivity Tomography (ERT) survey was performed by Fugro Consultants, Inc. on <br />behalf of SCC. The field data were collected between April 6th and 91h , 2016. The attached report <br />represents the results of the ERT survey and satisfies the requirement of Item 1 of the DRMS <br />Order. The report did identify an anomaly and it is shown Figure 2. <br />SCC believes there is a strong correlation between the reclaimed air shaft and the identified <br />anomaly and this anomaly could be the single contributing factor for the hydraulic connectivity to <br />the mine workings. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer <br />cc: SCC File <br />