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~~~~av~o <br />FEB 0~: 2006 <br />pivis~on of Minercls and Geo1o9Y <br />February 6, 2006 <br />Mr. Kent Gorham <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver. CO 80203 <br />Re: New Elk Mine Permit No.: C-81-012 <br />Bond Release Request <br />Deaz Mr. Gorham: <br />Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Telephone/Fax: (719) 846.4975 <br />Cell: (719) 859-6111 <br />e-mail: ronthompsor~sensonics.org <br />I have reviewed the initial bond release application as a follow-up to the Bond Release inspection <br />conducted by the Division on January 3 ], 2006. The West Portal Core house Area was included in the <br />application, and as noted during the inspection, Phase I reclamation has been completed in that area. <br />By letter dated November 21, 2005, Picketwire Processing requested that the West Portal Manway, <br />Substation, and the Longwall Warehouse (#2) be withdrawn from consideration. The work in these azeas <br />has been completed and they should be considered as part of the bond release request. <br />In the same letter, request for release of bonding for the Technical Revision approving Underground Refuse <br />Disposal was withdrawn. This withdrawal should also include reclamation of the RDA Benches. This work <br />has been completed, but a plan to recycle and recover coal contained within the refuse material is under <br />consideration. This may result in re-disturbing some or all of the RDA reclamation. <br />Since the initial bond release request was submitted, additional reclamation at the West Portal has been <br />completed. As such, Picketwire Processing would like to amend the initial application to include the <br />following activities: <br />1. WP Warehouse#1 Demolition and Rough Grading <br />2. Pump House Access Rd. Rough Grade and Ripping <br />3. C-4 tit' x 36" Culvert Removal <br />4. C-10 18T x 15" Culvert Removal <br />5. C-43 Culvert Removal <br />6. C-62 12.5' x 12" Culvert Removal <br />7. C-63 12.5' x 12" Culvert Removal <br />The bond release application has been amended to address the above referenced items and recalculate the <br />bond release amount requested. These revised items are included with this letter. Please contact me if you <br />require additional information. <br />Sir~erely, <br />61r1/- t1~0+'~ <br />Ron Thompson <br />