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Mr. Joe Carpio - 3 - April 23, 1987 Sufficient information has been submitted to allow us to develop reclamation costs. Because of the recent activity at the site and the potential for mine development, we have included costs for backfilling the portals and access road, for removing structures (i.e.: trailers and storage bins), and for grading and revegetating the site. The total cost calculated by the Division is $68,300.00. We have enclosed how we calculated this amount with this letter for your review. If you note any problems with our calculations or assumptions, please contact Tom Gillis or me to discuss them. This concern will be resolved once a mutually agreed upon value is determined. 8. In response to this concern pertaining to coal lease and two deeds, you submitted the executed coal lease between The Sarvers and La Plata Coal. Also, you mentioned that the deeds were being transferred to all parties involved in La Plata Coal. Please submit copies of these deeds when you have completed the transfers. April 9, 1987 Letter with Attachments 1. In conjunction with the previously submitted information, the Division proposes with your concurrence to keep pages 2.04-2 to -32 to address the "Description of the Land" (point 5, page 3 of the notice-of-intent application). 2. The Division does not believe you need to include any of Section 2.05 (pages 2.05-7 to -16) of the attached document pertaining to underground mining included in the notice-of-intent. The notice-of-intent is fora maximum 250 tons of coal whereas the attached document pertains to mining 61,200 tons of coal annually. Please update your narrative pertaining to proposed coal exploration activities (#6.a. on page 3 of the application) taking into consideration the maximum allowed tonnage, requirements of your test burn customers, and our proposed limitations on processing equipment. With the submittal of the reclamation plan from the regular permit application, most of the concerns pertaining to point 6. b., page 3 of the notice-of-intent application are resolved. The only concern identified is a technical one related to the timing of mulching. Page 2.05-38 discusses mulching followed by seeding due to the sandy soil at this site. The rationale provided was that seeding followed by crimping the straw mulch would cause the seeds to be buried too deep resulting in a potential fora stand failure. The Division does not agree with this theory since seeding after mulching will not allow the seeds to make contact with the soil. Therefore, any germinating seed would be held in the straw mulch and would quickly die. The Division believes the standard practice of seeding first followed by mulching at 4,000 pounds per acre should be the practice used at this mine site.