REV105983

• Permit No: C1981012
• IBM Index Class Name: Revision
• Doc Date: 8/17/2006
• Doc Name: Response to Adequacy Review
• From: Peak Project Management, LLC
• To: DRMS
• Type & Sequence: SL2
• Media Type: D
• Archive: No

Peak Project Management, LLC
34115 County Road 20.8
Trinidad, CO 81082
Telephone/Fax: [phone]
Cell: [phone]
e-mail: ronthompson~sensonics.org
August 15, 2006
Mr. Kent Gorham
Division of Minerals and Geology
1313 Sherman Street, Room 215
Denver, CO 80203
Re: New Elk Mine Permit No.: C-81-O12
Bond Release Request (SL-02)
Response to Adequacy Review
Dear Mr. Gorham:
RECEIVED
AUG 17 2006
Division ofa d S ety n,
Mining
New Elk Coal Company has reviewed the Division's Adequacy Review of the Surety Release Request (SL-
02) submitted April 12, 2005 and subsequently deemed complete by the Division on June 9, 2005. NECC
appreciates the Division's review of the Surety Release Request and Annual Reclamation Reports for 2004
and 2005 to insure consistency in reporting nomenclature and acreages. The following comments are in
response [o the Division Adequacy letter.
1. The Grasshopper conveyors were never installed onto footers and have been sold and removed
from the site. The bonding amount of $22,652.00 has been moved to Schedule I for Activities
Approved but never implemented (TR-39).
2. The bond amounts have been updated to the current bond amount after the Surety Increase Process
(SI-Ol). This resulted in a bond reduction request of $113,26'7.22 consistent with the Division's
calculations.
The Unit Train Loadout and the East Portal Hoist House have been removed from the requested bond
release since backfilling and grading has not been completed. NECC assumes that, with the anticipated re-
opening of the New Elk Mine and Processing and Loadout facilities, new construction may likely occur in
these aeeas. NECC further assumes that the existing bond amounts (for structures already removed) will be
available as a "credit" against any future bonding requirements for new facilities within these areas.
Minor Adjustments to Acreages and Terminology:
3. The WP Garage and West Portal Oil House are names that have been applied to the same identical
structure (Map Code 15). The Bond Release Request refers to the WP Garage as does Map ARR-
2. The table submitted with ARR-2005 has been revised to list the facility as WP Garage.
4. Map code 2 is the Powder and Cap House location and is shown as such on Maps 2005 ARR-2 and
SL-2, and the table submitted with ARR-2005. The term "Phantom Warehouse" is a reference to
a small wooden pre-law warehouse facility that was removed prior to the early 1980's. M
impression or outline of this structure is visible on Map SL-2 within the area of Map Code 3 at the
extreme right margin of the map. Acreage for this area is included with the Crehouse facility.
Map code IS is the West Portal Pumphouse. It is shown as Map Code 18 on maps SL-2 and 2005
ARR-2. The table submitted with 2005 ARR and the bond release have been revised to show an