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TATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />July 27, 2006 <br />Mr. Donald MacDonald <br />Coors Energy Company <br />P.O. BOX 467 <br />Golden, CO 80402 <br />Re: Keenesburg Mine, C-1981-028, Permit Renewal No. 4 (RN-OS) Adequacy concerns <br />Dear Mr. MacDonald: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />0.EC LANATION•NINING <br />SAFETY•SCIENCE <br />Bfll Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />In accordance with Rule 2.08.5, the Division has reviewed the Keenesburg Mine Permit, C-1981-028, for <br />compliance with the Colorado Surface Mining Reclamation Act (The Act) and the Regulations of the <br />Colorado Mined Land Reclamation Board for Coal Mining (Regulations). The Division has the following <br />concerns: <br />I. The United States Fish and Wildlife Service (USF&WS) contacted the Division with concerns <br />regarding updates to threatened and endangered species at the mine and surrounding area. Please <br />update the T& E species survey in accordance with the USF&WS concerns. USF&WS letter is <br />included with this letter. <br />2. There area several minor differences between acreages reported in the 2001 Permit Renewal (RN4) <br />application form, page 3, and the 2006 Permit Renewal (RNS) application form, page 3. These <br />differences include; "Private acreage" has been reduced from 612 acres to 611 acres, "Affected area" <br />has been reduced from 456 to 438 acres, "Mineral ownership" the state owned mineral has been <br />reduced from 192 to 191 acres. Also the reseeded acreage reported is greater than the backfilled and <br />graded acreage. Please bring these values into agreement or provide a detailed explanation of why <br />these acreage values have been revised. <br />3. Coors energy Company (CEC) submitted a copy of the bond form with the RNS application. This <br />copy agrees with the bond document on file with the Division. The bond is a corporate surety issued <br />by Travelers Casualty and Surety Company of America. The bond number is 103799990. The bond <br />amount is $2,614,909.00. <br />The legal description on page 8, Exhibit A, of the bond document states that the total acreage is 439 <br />acres, while the "legal description-property" found on the following page with the legal metes and <br />bounds description states, "the total permit azea contains 612.5 acres, more or [ess." The acreage <br />values reported on page 3 of the RNS application and those described in the bond document need to be <br />in agreement. Pease bring the acreage values into agreement and document any changes to these <br />figures. For example; if the acreages have been revised due to a more accurate survey, or removal of <br />Office of Offite of Colorado <br />Mined Land Reclamation ARive and Inactive Mines Geological Survey <br />