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<br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />7373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832$106 <br />March 10. 2004 <br />Bobby Hill <br />Hill Ranch <br />P. O. BOX 226 <br />Fairfield, TX 75840 <br />RE: Phase I Bond Release, Lorencito Mine, #C-96-084 <br />Dear Mr. Hill: <br />COLORADO <br />DIVISION O p <br />MINERALS <br />GEOLOGY <br />RELLANATION•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology (DMG) has received additional information <br />concerning a Phase I bond release at the Lorencito Mine. As you may recall, this <br />application was originally called incomplete by the DMG in July 2003. However, based <br />upon review of this additional information, the DMG now considers the application <br />complete for the purposes of filing in accordance with Rule 3.03.2(1). <br />Lorencito Coal Company, LLC is requesting the release of bond held by the DMG for <br />backfilling, grading, and drainage control work completed on 86 acres at the mine site. <br />The amount of bond requested to be released is $1,444,927.00 of a total bond amount <br />currently held by the DMG of $2,400,000.00. <br />Within 30 days of receipt of a complete application, the DMG must conduct an <br />inspection, weather conditions considered, of the reclamation work completed. We will <br />notify you of the date and time of the inspection, should you or your representative wish <br />to attend. <br />A copy of the Rules and Regulations governing Coal Mining in the State of Colorado <br />can be found at http://mining.state.co.us/rulesandregs.htm. <br />If you have any questions, please call me. <br />Since ly, ~~ <br />Ke t Gorham <br />Environmental Protection Specialist II <br />Office of <br />Mined Land Reclamation <br />Office of <br />ARive and Inactive Mines <br />Colorado <br />Geological Survey <br />