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Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Telephone/Fax: (719) 846.4975 <br />Cell: (719) 859-0111 <br />e-mail: ronlhompson~senaonics.org <br />February 23, 2006 <br />Mr. Kent Gorham <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, Co 80203 <br />RECEIVED <br />E Eg 2 4 2006 <br />Division of Minerals & Geology <br />Subject: Permit Transfer, Lorencito Canyon Mine, Permit C-96-084 <br />Deaz Mr. Gorham, <br />New Elk Coal Company, LLC (1202 Main St, Goodland, KS 67735) requests written <br />Division approval of the transfer of the CDMG Pemut C-96-084 from Lorencito Coal <br />Company, LLC (4422 Bryan Station Road, Lexington, KY 40516 ). New Elk Coal <br />Company, LLC has completed documents showing intent to purchase and lease the <br />existing Lorencito Canyon Mine Permit azea, upon receipt of an affirmative finding from <br />the Division. <br />This package addresses all applicable portions of Rules 2.08.6 and 2.03. New Elk Coal <br />Company, LLC has revised Section 2.03 of the permit, with supporting compliance and <br />right-of--entry documents in Ezbibits 1 and 2. Surface and coal ownership has been <br />reviewed and Maps 1 and 2 correctly reflect surface and coal ownership. Application <br />materials for the transfer aze enclosed. A proposed newspaper advertisement of the <br />transfer is included for your review. The public notice will run once in the Trinidad <br />Chronicle. A copy of this transfer package will be placed in the Las Animas County <br />Courthouse. <br />The insurance policy has been issued and copies of the insurance certificate will be <br />submitted upon receipt. Copies of this certificate should be placed in Ezbibit 3. New Elk <br />Coal Company's financial institution has approved the issuance of a Letter of Credit to <br />cover the bond amount required for the new Lorencito Canyon Mine. The Letter of <br />Credit will come to the Division under separate cover. <br />