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INTRODUCTION This document is the decision package prepared by the Colorado Division of Minerals and Geology (the "Division") for the New Elk Mine. This document includes a summary which includes a history of the review of the permit application, a description of the environment affected by the operation and a description of the mining and reclamation plan; and the written findings of compliance the Division has made as required by the Colorado Surface Coal Mining Reclamation Act. Detailed information concerning the findings of compliance can be found in the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. The Division received an application for a permit renewal (RN-04) to continue to conduct surface coal mining and reclamation operations at the New Elk Mine. Picketwire Processing, Inc. submitted the application, and Picketwire Processing, Inc. will operate the mine. The mine is located on private lands within Las Animas County, Colorado. The permit area covers approximately 900 acres. Due to the lack of a U.S. Public Land Survey of this area, the legal description of the lands included within the permit area is a metes and bounds description, which is included in Exhibit 34 of the permit. An approximate of the location of the permit area, assuming the sections are partially or fully projected in T33S R68W, is as follows: T33S R68W, Portions of Sections 13, 14, 21, 22, 23, 24, and 28. The above-mentioned tracts of land are shown on the USGS 7.5 minute Quadrangle maps of Vigil, Tercio and Stonewall. PROPOSED DECISION The Colorado Division of Minerals and Geology proposes to approve an application for renewal of a valid, existing permit. The application was submitted by Picketwire Processing, Inc. for the New Elk Mine. This decision is based on a finding that the operation will comply with all requirements of the Colorado State Program as found in the Colorado Surface Coal Mining Reclamation Act, C.R.S. 34-33-101, et seq., and the Regulations promulgated pursuant to the Act. If no request for a formal hearing is made within thirty (30) days of the first publication of the issuance of this proposed decision, then this decision becomes final and the renewed permit will be issued. The applicant has an acceptable surety bond on file with the Division. The permit application, all supporting documentation and any stipulations or conditions will become a binding part of the permit.