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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFEiY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (3031 866-3567 <br />FAX: (303) 832-8106 <br />January 23, 2007 <br />Henry Bazbe <br />Mountain Coal Company, LLC <br />P.O. Box 591 <br />Somerset, CO 81434 <br />Re: West Elk Mine (Permit No. C-1980-007) <br />Permit Renewal Application No. 5 (RN-5) <br />Deaz Mr. Bazbe: <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. Cattany <br />Division Director <br />Natural Resource Trustee. <br />As part of the review of Permit Renewal Application RN-O5, the Division of <br />Reclamation, Mining and Safety has updated the reclamation cost estimate for the West <br />Elk Mine. A copy of the estimate prepazed by the Division is enclosed. <br />The total for the estimate is $13,546,176, an increase of $1,644,075 compazed to the most <br />recent estimate of $11,902,101. Based on the increase, the Division proposes to adjust <br />the amount of required bond by $1,644,075. This proposed bond adjustment would <br />require submittal of additional bond in the amount of $1,546,176 in order to bring the <br />bond on deposit up to the proposed $13,546,176, from the current amount on deposit of <br />$12,000,000. <br />You may request an informal conference to discuss the proposed bond adjustment, as <br />provided by Rule 3.02.2(4). <br />We anticipate issuing a proposed decision on Permit Renewal Application No. 5 by <br />January 25, 2007. <br />If you have any questions, do not hesitate to call me. <br />Sincerely, <br />/~/-~. <br />Tom Kaldenbach <br />Environmental Protection Specialist <br />cc: <br />Office of <br />Mined Land Reclamation <br />Daniel [. Hernandez, CDMG <br />Office of <br />Active and Inactive Mines <br />