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MpY. ii. 1999 <br />Ta: <br />From: <br />cc: <br />11~00RM DIViNINERRLS&GEOLOGY <br />N0.385 P.2iZ <br />internet®CORLWDNRML[garciajp2kenergy.com], <br />intexziet®COALC~DNRML[kigerjOkenergy.com],WalkersoCOAL®DNRhtL <br />WalkerB®COAL®DNRML <br />Subject: Exploration Drill Holes, C-61-o19 and NOI <br />Attachment: <br />Date: 05/11/1999 8;41 AM <br />Dear Mr, Kiger and Mr. Garcia: This memorandum is to confirm our conversations land to add some more <br />information) concerning authorization and reclamation bonding of exploration drill holes, some located without the <br />Current permit C•81-019 (permit) boundary end some within. Our current policy is to permit such exploration drill <br />holes, both within end without permit boundaries, under our Notice of Intent (N011 procedures (Rules 2,02, 3:05, <br />and 4.21). Exploration holes which are located within the permit boundary which were approved under Minor or <br />Technical Revisions can be transferred to the NOI procedures under a Technical Revision, NOl bonds end <br />permit bond are separate and independent Instruments. Bonding for the reclamation of holes transferred need to <br />be on NOI bonds, An application for bond release iRule 3,03) from the permit bond for holes transferred from the <br />permit to NOIS could be submitted upon eompletidn of the transfer for tasks merely deleted from the permit <br />reclamation cost estimate), Bonding INOI) is required for the reclamation of the holes, in their entirety, and other <br />such incidental disturbances (access roads, mud pits, footprints of disturbance, reseeding, etc,fiAule 3.05.1), <br />Release of NOI bonds will be considered based on sealing, mining through, reclamation, etc, [Rule 3.06,5). The <br />information provided for the transfer of holes from permit reclamation to NOI reclamatlon must be detailed and , <br />specific with regard to hole identity potation, depth, ete.),.assoeiated disturbances, reclamation costs. and losing <br />and gaining bond coverage. Please contact me if you have any questions concerning this guidance. Please <br />confirm receipt of this a-mail. <br />