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-• J. E. STOVER & ASSOCIATES 2768 COMPASS DRIVE, SUITE 101 GRAND JUNCTION, COLORADO 81506 PHONE: (970) 245-4101, FAB 242-7908 MINE ENGINEERING MINE RECLAMATION July 17, 1995 Susan McCannon Division of Minerals & Geology 1313 Sherman St., Room 215 Denver, CO 60203 Re: Coal Ridge No. 1 Mine Bond Release Decision Permit C-84-065 Dear Ms. McCannon: RF~EIVED JUL 201995 Division bt M~nerai6 K Geology Thank-you for taking time to meet with us on Thursday July 13th. This letter is written to summarize the agreements reached during the meeting. As expressed during the meeting, NCIG believes the reclamation work was performed in accordance with the approved reclamation plan. The verbal description of the reclamation plan contained in the permit is clear. The DMG's eleventh hour use of one of ten cross sections from plates 4-1 and 4-2 to "clarify" the reclamation plan is unjustifiable since the other nine sections are not applicable to the reclamation plan. However, NCIG has agreed to submit a technical revision application to the DMG to address the issues and concerns presented in the DMG's phase I bond release findings document dated May 26, 1995. The work contemplated by the technical revision will be initiated only under the conditions set forth below: A. OSM agrees NCIG's 1994 reclamation project was performed in accordance with Colorado's approved program. Specifically, NCIG must be assured that OSM has agreed to not pursue the approximate original contour issue prior to NCIG performing additional reclamation work. B. The DMG agrees to release a portion of NCIG's bond based upon the following sequence of events: 1. NCIG submits and the DMG approves the aforementioned technical revision application which addresses the DMG's bond release concerns. ~II II~II~IIIII~~ II~ sss CIVIL ENGINEERING CONSTRUCTION MANAGEMENT 2. NCIG commits to perform the work contemplated by the technical revision.