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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 8328106 <br />March 14, 2007 <br />Mr. Wendell A. Koontz <br />Ark Land Company <br />P.O. Box 591 <br />Somerset, CO 81434 <br />RE: Second Adequacy Review <br />Ark Land Company, The Grand Valley Book Cliffs Project <br />DRMS Notice of Intent to Conduct Coal Exploration No. X-2007-228-00 <br />Deaz Mr. Koontz: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- St'- <br />SAF ETY <br />Bill Ritter, )r. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />On Mazch 14, 2007, the Division of Reclamation, Mining and Safety received responses from Ark <br />Land Company to our Adequacy Review of February 16, 2007 for the Ark Land Company Book Cliffs <br />Project Notice of Intent. We have reviewed your responses, and would like to document the status of <br />our review, utilizing the same questions from out February I6 2007 letter. <br />This adequacy question was addressed during our telephone conversation held on March 13, <br />2007. It is our understanding that you (Wendell Koontz) will be the company representative <br />present at and responsible for conducting the exploration activities. <br />2. This adequacy question does not appear to have been adequately addressed. We had requested <br />a revised Page 2 of the NOI application form be submitted in which sections 10, 15 and 16 (of <br />T8S, R101 W) were removed from the application form, as these sections did not appeaz within <br />the "Modified Exploration License Area" shown on Figure 1 of the NOI application. <br />Please provide the Division with a copy of the issued BLM Exploration License (#COC-70164) <br />as soon as you can. <br />4. Thank you for the revised page 9 of the "Exploration Plan" that contains information regarding <br />the eight proposed staging areas. Please note that the Division cannot approve the three <br />additional staging areas (two proposed on R. Cole property and a third proposed on D. <br />I-Iitchborn property) discussed in the revised NOI For which Ark Land Company does not yet <br />have right-of--entry agreements. Please let us know if Ark Land would like the Division to <br />withhold approval of the NOI until the right-of--entry agreements are completed. As an <br />alternative, the Division can approve the NOI without these three staging areas, and Ark Land <br />may amend the NOI at a future date to add these three staging areas once the agreements are <br />obtained. <br />Office of Office of <br />Mined Land Reclamation Denver ,Grand junction Durango Active and InaRive Mines <br />