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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />• Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver. Colorado 80203 <br />Phone: 13031 8663567 <br />FAX: (303) 832-0106 <br />COLORADO <br />D l V 15 1 0 N O F <br />MINERALS <br />GEOLOGY <br />RECLAMM1TION•MI NING <br />SArETY•SCIfNCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive DireLtor <br />March 14, 2006 <br />Roy Karo <br />Seneca Coal Company <br />P.O. Box 670 <br />Hayden, Colorado 81639 <br /> <br />Ronald W. Canany <br />Division Director <br />Natural Resource Trustee <br />RE: Seneca II-W Mine (Permit No. C-1982-057) <br />Permit Revision No. 5 (PR-OS) <br />Modification of Plans Associated with 2006 Cessation of Coal Production <br />Review of Adequacy Response <br />bear Mr. Karo: <br />The Division has completed a review of your response submittal to our adequacy review <br />letters of July 11, 2005 and August 25, 2005. We also note that your submittal includes a <br />response to our letter of May 27, 2005, which requested written request for withdrawal of <br />out-dated Exhibits 20-1 and 20-1A. The responses were submitted under your cover <br />letter dated January 31, 2006. Our review comments to these submittals are set forth in <br />Enclosure A. <br />Also, the Division has completed an updated reclamation cost estimate for PR-5/RN-4. <br />The new liability, based on the changed tasks, is $9,517,161.00. This is a decrease of <br />$190,212.00 from the current bond held of $9,707,373.33. At this point SCC does not <br />need to submit any additional bond. This revised estimate is based on comments from <br />SCC contained in an 11/OS memo and discussed with the Division during a meeting on 7 <br />December 2005. Cost estimate questions raised by SCC in the 1 I/OS memo are <br />addressed in Enclosure B. <br /> <br />Office of <br />Mined Land Reclamation <br />Office of <br />Active and Inactive Mines <br />Colorado <br />Geological Survey <br />