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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telepho~: (719) 8464975 Fax: (719) 846-4930 Cell: (719) 859-0111 <br />wnthompso~~wildtrlue.net <br />Mazch 24, 2007 <br />Mr. Kent Gorham <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: New Elk Mine: Pernut No. C-81-012 <br />Quarterly Sediment Pond Certifications <br />Deaz Mr. Gorham: <br /> <br />MAR 3 0 2007 <br />DiVisiono's a.~,~run, <br />Mining and Satety <br />Enclosed are copies of the Fourth Quarter 2006 Sediment Pond Inspection Reports. All <br />embankments were found stable. No dischazges were observed during the quarter. <br />The annual pond inspection was scheduled for this quarter. Typically water levels in the <br />ponds aze at their minimum during this quarter easily facilitating determination of <br />sediment and water levels. October storms followed by freezing weather in November <br />and snow throughout December resulted in rescheduling the annual inspection and <br />elevation surveys to First Quarter 2007. <br />Please contact me if you have any questions. <br />Sincerely, <br />Ronald G. Thompson <br />Project Manager <br />MSHA Certified -Impoundment Inspections <br />