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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: 1303186fr3567 <br />FAX: 1303) 532-8106 <br />January 18, 2007 <br />Mr. Ron Thompson <br />Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />RE: New Elk Mine, Permit No. C-1981-012 <br />Request to Vacate Cessation Order <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION O f <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell Georg <br />Executive Director <br />Ronald W. Cauany <br />Division Director <br />Natural Resource 7mstee <br />The Division of Reclamation, Mining and Safety has received your letter requesting vacation <br />of the Cessation Order issued to Picketwire Processing LLC for the New Elk Mine. You <br />reference CV-2006-003 in yow letter, but we believe you are actually referring to CO-2006- <br />007, the cessation order issued for failure to abate CV-2006-003. <br />The Division declines to vacate CO-2006-007 at this time. As discussed in the Division's <br />letter dated December 15, 2006 to Wayne Coverdale and the letter dated December 20, 2006 <br />to Steve Riebel,the bond provided was considered unacceptable. An acceptable bond was <br />contingent upon the final decision of bond release application SL-2. The decision for the <br />bond release application became final on December 26, 2006. <br />If Picketwire Processing LLC would like to request an informal conference to discuss the <br />proposed penalty for CO-2006-007, we will honor your request. Please request the <br />conference within 10 days after receipt of this letter. <br />;i,~y <br />Ronald W. Cattany <br />Director, Division of Reclamation, Mining and Safety <br />Certified Card No: 7005 3 1 10 0000 2197 7771 <br />Return Receipt Requested <br />Office of Office of <br />Mined Land Rxlamation Active and Inactive Mines <br />