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III IIIIIIIIIIIIIIII 999 STATE, OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depdrlmenl Sri Numral Rev mri e> I.I I S Sherman 51., Ruum ] I S Dcnver, CnLrradu A0203 Phunc~ 13031 flh6 SSh7 FA:(: I}pll N1?~H706 January' 7, 1999 Rov Romer Gavernur Paul H. Hartmann lame, S. Lochhead DIwI510R Ot Wlldllfe ~ EtecuG~e Director 6060 Broadway M.<h~ri e. LonK Divi,ion Director Denver, CO 80316 RE: Boscay del Oso Property, Las Animas County, Golden Eagle Mine, #C-81-013 Dear Mr. Hartmann: Thank you for your letter dated December 17, 1998 concerning the closing on the Boscay del Oso property purchase in Las Animas County. As a surface land owner of lands in or adjacent to a permitted coal mine, you are afforded numerous rights, including notification of permitting actions and bond release applications, as ~.vell as participation in bond release inspections when they are conducted. As a sister agency within the Department of Natural Resources, we anticipate communication through letters, e-mail, phone calls, and on-site visits during our monthly inspections. We look forwazd to working with you and Basin Resources through the remaining eight years of the bond liability period. [will modify our process here to ensure that you and Mr. Holder aze notified of future permitting activities. The status of the permitting actions associated with the permit boundaries of the Golden Eagle and New Elk mines is as follows: Bond Release No. 1 (SL-O1) for the New Elk mine (C-31-012) was approved and the decision became final on December 9, 1998. In summary, this action releases liability of those areas above underground workings that lies south of Highway 12. Bond Release No. 2 (SL-02) for the Golden Eagle mine (C-81-013) was approved and became final on November 26, 1998. This approval affected the mine in a number of ways. First, it reduced the permit boundary significantly, as shown in the maps previously mailed to you (see e- maildated 12/l8/98). Secondly, it released all liability on those areas of industrial use (gas extraction). Also, it released liability for areas overlying underground workings south of Highway /Z and outside the new permit boamdary. Basin Resources continues to be liable for the surface, reclaimed or otherwise, inside the new permit boundary with the exception of the industrial land use areas. Finally, it incorporated the two reclaimed ventilation shafts located in Apache Canyon, originally permitted by the New Elk mine, into the GOlden Eagle permit. As a result, the Golden Eagle mine now has four, separate areas which comprise the permit area; the DEPARTMENT OF NATURAL RESOURCES