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James A. Kiger November 22, 2000 Page 2 of 5 Pages Upon approval of your NOI X-95-109-5 amendment application, the Division proposes, under TR-50, to authorize reclamation liability reductions on Permit C-81-O19 (Exhibit l3) of $16,723 (and return American Home Assurance Bond # 14-95-66 in the amount of $16,723), and $14,100 (MR-44). The Division proposes that such reductions be demonstrated within Exhibit 13 (modification of the Exhibit) during the concurrent Permit Midterm Review (to avoid potential multiple and frequent revisions of Exhibit l3). Item 1. Colowyo, by letter of April 17, 2000, advises the Division of the concurrent Colowyo request that all NOI exploration holes under NOI X-95-109-OS be released from the reclamation bond. As stated above, the bond coverage requirements for exploration holes transferred from Permit C-81-019 to the NOI will be purged from the Permit (associated bond requirements will be reduced). Management of bond requirements for transferred exploration holes will be undertaken under NOI procedures. All closure information available in the Permit C-81-019 files and TR 50 will be made available to the Division NOI Reclamation Specialist. Some of the holes (wells) transferred may require continued NOI bond coverage, some may not. The Division has concluded, in coordination with the Office of the State Engineer (Engineer), that permits issued by the Engineer do not relieve the permittee or the Division of requirements for Division coal exploration and monitoring well permits and bonds required by the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining (Rules). The attached memorandum (September 22, 2000, Berry to et al, Re: Technical Revision No. 50 -Colowyo Coal Mine - C-81-019) provides additional detail regazding this issue. Requirements for NOI reclamation bond coverage for any of the wells transferred from Permit C-81-019 to NOI 95-109- 05 will be identified to Colowyo under separate cover (an adequacy letter to the NOI amendment application). As TR-50 is processed and NOI X-95-109-OS is amended, please retain a description in the C-81-019 PAP that provides the location (and yield) of all wells registered with the Engineer [Rule 2.04.7(1)(6)]. Item 2 By annotation, Table 1 of the TR-50 application was included in the PAP under your letter of July 18. Please advise the Division as to the location in the PAP for this table, and include it in the List of Tables. Item 3 Similarly, please identify the Permit Area 1989-1997 Drill Hole Information Map (89- 97 Map) as a map in the PAP and include it in the List of Maps. Item 4. Holes 1, 3 through 8, 26, 27, 33, 35, 37, 45, 46, l0l and 102, are shown on Regional Hydrology Map 10, and referred to as observation wells (PAP page 2.04.7-5). Table lA, on page 2.04.7-7, indicates that these holes were drilled by entities other than Colowyo. If any of these holes are still in use, or still require reclamation, please add them to Table 1 or 2 or designate them as part of the Permit C-81-019 monitoring program (see Item 15 below) as appropriate. Please advise the Division in writing whether these wells were approved by a State mining and reclamation agency in the early 1970's as part of some "prospecting" or "exploration"