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-- .!. E. STOVER & ASSOC{ATES <br />2768 COMPASS DRIVE, SUITE 101 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />May 23, 2001 <br />Ronald & Elizabeth Smith <br />P.O. 154 <br />Mesa, CO 81643 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Powderhorn Coal Company is responsible for the reclamation of the Roadside North and South <br />Portals under Division of Minerals and Geology, Permit No. C-81-041. Powderhom Coal <br />Company has periodically reclaimed portions of the mine disturbance from 1985 to-date. <br />One provision of the Division of Minerals and Geology's Rules is that the mine must be bonded <br />for the estimated reclamation cost. Since a portion of the reclamation work has been <br />performed, Powderhom Coal Company has formerly requested a partial bond release from the <br />Division of Minerals and Geology. Powderhorn Coal Company has a bond liability of <br />$2,903,016 and has requested that up to $314,502 of that amount be released. In accordance <br />with the Division's Rule 3.03.2(1), Powderhom Coal Company is required to send written notice <br />of its partial bond release request to adjacent land owners, surface owners and various local <br />governing bodies. <br />The area for which the partial bond is being requested is the Roadside mines, North and South <br />Portals, and are located approximately three miles northeast of Palisade, CO at the Interstate <br />70, Cameo Exit No.46. The reclamation work has been done in T10S R 98W Sections 26, 27, <br />28, 29, 34, 35, T11 R98W Sections 2, 11, 14 and T1S R2E Section 1. All of the mine portals <br />have been sealed. The South Lease Exploration roads, North Decline, North West Intake <br />Portal, South Fan and the 2 West Portals have been restored to approximate original contour. <br />Approximately 18" and 24" of cover, including topsoil, was placed on 9.6 acres of Cameo <br />Refuse Disposal Area No.1 and 7.6 acres of Cameo Refuse Disposal Area No. 2 respectively. <br />Topsoil was removed and replaced at the Cameo borrow area No. 1. The overland conveyor, <br />from transfer 1 to transfer 4, has been dismantled and removed from the site and some <br />monitoring wells sealed. A few miscellaneous buildings and structures have been removed <br />from the site. All work has been performed in accordance with plans approved by the Division <br />of Minerals and Geology. <br />Sincerely, <br />;1. E. Stover, P.E. <br />Consulting Engineer <br />