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_B_BA <br />water consultants <br />BISHOP-BROGDEN ASSOCIATES, INC. <br />February 15, 2013 <br />Ms. Megan Sullivan <br />Office of the State Engineer <br />1313 Sherman St, #818 <br />Denver, CO 80203 <br />ChristoplicrJ. Sanchez <br />Jeffrey A. Clark <br />Michael A. Sayler <br />Daniel 0. Niemela <br />Charles E. Stanzionc <br />Laurel E. Stadjuhar <br />RE: Well Permit Application Receipt Nos. 3654112A —C: Resolution of 600 -ft wells spacing issues <br />with well permit applications for Western Fuels- Colorado LLC — New Horizon Mine Facilities <br />Dear Megan: <br />On February 14, 2012 our office submitted three well permit applications on behalf of our client Western <br />Fuels- Colorado LLC ("Western Fuels ") for two coal mining areas and one settling pond area located in <br />Division 4 in Montrose County. As discussed in the previous permit application letter from last February, <br />there were 600 -ft well spacing issues that had yet to be resolved. <br />Our office has since coordinated with Western Fuels and located the wells in question. Two of the nearby <br />wells were determined to be within 60041 of the mining areas (Permit Nos. 186113 and 47673) and one <br />of the wells was determined to be greater than 600 -ft (Permit No. 18275). To resolve the 600 -ft well <br />spacing issues, Western Fuels has revised their mining excavation boundaries so that all three wells are <br />located at least 600 -ft away from the excavation area. Figures 1 and 2 show the revised mining <br />excavation areas as well as the nearby wells. The updated boundaries are reflective of the footprints of the <br />areas now claimed in the well permit applications. We have attached a letter from Western Fuels <br />confirming their field survey of the well locations. <br />Since the 600 -ft well spacing issues have been resolved, we kindly request your office proceed with your <br />review of the above-mentioned well permit applications. If you have any questions, please do not hesitate <br />to contact me directly by phone at 303 -806 -8952 or by email at esanchez ,,a bba«ater.com. <br />Very truly yours, <br />BISHOP- BROGDEN ASSOCIATES, INC. <br />Christopher J. Sanchez, P.G. <br />Principal <br />CJS /PJB /jeb <br />Enclosues <br />cc: Ross Gubka <br />Doug White <br />Aaron Ladd <br />Wayne Schieldt <br />0403.09 <br />