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<br />9. Your final question Rgazding Division policy dealt with the manner by <br />which to submit a request for subcrop drilling, and how to determine the <br />appropriate reclamation cost estimate amount for that activity. It is our <br />policy that subcrop drilling would constitute "exploration" as defined in Rule <br />1.04(22); however, Rule 2.02.1 states that the coal exploration statutes apply <br />to those activities "outside an approved permit area." Therefore, if the <br />proposed subcrop drilling is located outside of the current New Horizon <br />permit area, then a Notice of Intention, per Rule 2.02, must be filed and <br />approved prior to the activity commencing. If, however, the proposed <br />drilling is within the permit area, or would be after an incidental boundary <br />change, then a Minor Revision to the permit could be filed. <br />Regarding the cost estimate calculation, the Division would develop a cost <br />estimate for the drilling program if you did not wish to prepare one. <br />I hope I have answered your concerns to your satisfaction. Please call us for any further <br />service we may provide. <br />Sincerely, <br />Daniel I. Hernande~~~G <br />Senior Reclamation Specialist <br />DIH/bjw <br />cc Harry Bonney, DMG <br />\bjw\dih <br />