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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) 866-3567 <br />FAX: (303) 832-8106 <br />December 28, 2006 <br />Steven E. Leach <br />The Pittsburg & Midway Coal Mining Co. <br />116 Inverness Drive East, Suite 207 <br />Denver, CO 80112 <br />Re: Edna Mine, Permit C-1980-001 <br />Permit Renewal Number 5 Application <br />Notice of Increase in Liability <br />Dear Mr. Leach: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining and Safety (Division) has determined that the cost <br />of remaining reclamation at the Edna Mine site has raised by $25,357 since last adjusted. <br />The current cost of remaining reclamation is now estimated as $2,871,155. A copy of the <br />estimate prepared by the Division is enclosed. The bond covering the cost of remaining <br />reclamation liability is currently in the amount of $3,071,961. Therefore, there need not <br />be a bond adjustment to cover this increase in reclamation liability. <br />As we discussed on the telephone on this date, you are notified by this letter of the <br />proposed increase in reclamation liability, and are provided an opportunity for an <br />informal conference on the adjustment [Rule 3.02.2(4)(a)]. <br />A proposed decision on the Permit Renewal Number 5 Application is currently scheduled <br />by January 15, 2007. <br />Please contact me if you have any questions. <br />Yours truly, <br />Byron G. Walker <br />Environmental Protection Specialist <br />1 Enclosure as stated <br />files: electronic: C-1980-001, RN-5 <br />C:\bgw\My Documents\Edna\RN\OS\RN 5 liability increase notice.doc <br />Office of ~ Offce of <br />Mined Land Reclamation Active and Inactive Mines <br />