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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department d Natural Resources 1313 Shemtan St, Roan 215 Denver, Colorado 80203 Phone: 1303) 8663567 FAX: (303) 832106 July 13, 2006 Assistant State Supervisor Fish and Wildlife Enhancement U.S. Fish and Wildlife Service 764 Horizon Drive, South Annex A Grand Junction, CO S 1506-3904 Re: Calowyo Coal Mine (Permit No. C-1981-019) COLORADO DIVISION O F MINERALS GEOLOGY REC LANATION•NI HINO EAEETTECIENGE Bill Owens Govengr Ruuell Geroge EnECUnve DireUa aa>au w. canary Division Director Natural Resource Tnlstee Permit Revision Application No. 2 (PR-2) Expansion of the Existing Permit Boundary Area to Include Approximately 6,050 Acres of Land Located to the West and South Dear Sir or Madam: The Division of Minerals and Geology (DMG) hereby issues notice, in accordance with Title 34, Article 33, Section 118, Paragraph 3, of the Colorado Revised Statutes, that on July 13, 2006, an application to revise coal mining operations at the Colowyo Coal Mine was considered complete for the purposes of Fling. All review and comment periods as provided in the Act and the Regulations initiate from this date of filing. The Colowyo Coal Company has submitted an application for Permit Revision 2 (PR-02) for the Colowyo Mine. The proposed revision is for the extension of mining in the South Taylor Creek (to the south of the current operations) and Lower Wilson Creek (to the west of the current operations). The revision includes 6,050.1 new permit acres, of which 3,826.7 acres are private lands and 2,223.4 acres are federal lands. The mineral ownership includes 830.9 acres of private mineral rights and 5,219.2 acres of federal mineral rights. The revision proposes to disturb an additional 905.0 acres and affect 914.2 acres with multi-seam surface and highwall mining methods. The operator is also requesting variances from contemporaneous reclamation and approximate original contour for the South Taylor mining area. There will be an increase in the reclamation liability associated with this revision. The Surface coal mining operation is on land located approximately 28 miles South of Craig, Colorado. The permit area is further described as follows: All or portions of Sections 2, 3, 4, 8, 9, 1 Q 11, 14, 15, 16, 17, 2Q 21 and T3N, R93 W; and Sections 13, I5, 22, 23, 24, 26, 27, 28, 33 and 34, TAN, R93 W; 6th Prime Meridian. The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Axial and Nine Mile Gap. Because the above referenced technical revision application would incorporate additional lands into the permit area or might otherwise alter previously approved permit conditions or mitigation measures, the Division is coordinating with the Office of Surface Mining on evaluation of the potential for impacts to threatened or endangered species of plants or animals, or wildlife species otherwise protected by federal law. A copy of the permit section addressing potential effects of the operation to threatened and endangered (T&E) species has been forwazded to the Office of Surface Mining. The OSM will prepare the biological assessment necessary for Office of Offire of Colorado Mined Land Reclamation Ac[ive and Inactive Mines Gmlogical Survey