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National King Coal, LLC ~g~o sesaszs (970)385638 nkc@NKCmine.com <br />P.O. Box 2905 4424 County Road 120 <br />Durango, Colorado 81302 Hesperus, Colorado 81326 ~O 1® <br />7/8/2002 <br />Willis L. Gainer, Director <br />Albuquerque Field Office <br />Office of Surface Mining <br />505 Mazquette Ave. N.W., Suite 1200 <br />Albuquerque, NM 87102 <br />RECEI\f''^ <br />~JU! 2 r, 2002 <br />OMbbn of Minera:. <br />RE: National King Coal, LLC Permit No. CO-OlOlA: Notice of Application for <br />Release from Phase Three Bond Liability <br />Deaz Mr. Gainer. <br />National King Coal, LLC is submitting an application for release from Phase Three bond <br />liability associated with its' current Irrevocable Letter of Credit number 372 held through <br />The First National Bank of Durango in Durango, Colorado. <br />The azea for which National King Coal, LLC is requesting this release from Phase 3 bond <br />[iability is located within the permit area of current permit CO-Ol OlA. The mine permit <br />area is located approximately 4:5 miles southwest of Hesperus, CO, south of County <br />Road 120 and is more particularly described as follows: T.35 N., R 11 W.; Section 31: <br />NEl/4SW1/4, SEl/4NW1/4, Lots 2, 3, and 5, consisting of 120 acres, more or less. <br />Mining was completed on all areas covered by this bond in 1998. <br />Reclamation activity in this area betwcen 8/30/1995 and present consisted only of filling <br />one subsidence related tension crack which crossed a 2 track dirt road on the property. <br />All other tension cracks have `healed' naturally to the satisfaction of the OSM officials <br />which have inspected the area. Also, one old exploration drill hole site was cleaned up <br />and re-seeded. No surface disturbance occunrd as a result of mining operations other <br />than the aforementioned tension cracks and drill hole site. <br />Address any questions regarding this submission to Tom Bird at (970) 385-4528 ext 14. <br />Sincerely <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />CC: H. Ranney, CDMG-Denver <br />M. McColm, BLM-Denver <br />