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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: 1303) 632106 <br />June 29, 2007 <br />Mr. James A. Kiger <br />Oxbow Mining, LLC <br />P.O. Box 535 <br />Somerset, CO 81434 <br />RE: Adequacy Response Review Letter <br />Notifications <br />Oxbow Mining, LLC, "2007 NOI -Elk Creek Mine" <br />DRMS Notice of Intent to Conduct Coal Exploration No. X-2007-223-08 <br />Dear Mr. Kiger: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive DireROr <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining and Safety received a letter from Oxbow Mining, LLC entitled <br />"Response to CDRMS June 18, 2007 Adequacy Review" via a-mail on June 21, 2007. Subsequently on <br />June 21, 2007, I informed Oxbow Mining that our adequacy concerns had been resolved. During my <br />review of the files, l found that I had not previously informed Oxbow Mining of several required <br />determinations. I apologize for this oversight, and provide notice of these determinations herein: <br />Determination of Substantial Natural Land Surface Disturbance [Regulations 2.02.2(3) and <br />1.04(127)] <br />The exploration activities described will "substantially disturb" the natural land surface, as defined at <br />Regulation 1.04(127). <br />Determination of Proposed Activities as Coal Exploration [Regulations 2.02.2(1) and 1.04(22)[ <br />The activities described in the Notice of Intent qualify as "coal exploration" as defined at Regulation <br />1.04(22). The coal exploration activities described will involve removal of 250 tons or less of coal. <br />Determination of Performance Bond Amount [Regulation 3.05.2(2)) <br />The exploration activities described will require a performance bond in the amount of $43,100. A copy of <br />an internal CDRMS memorandum from Janet Binns to me dated June l5, 2007 regarding the methods in <br />which this amount was determined was provided [o you under separate cover on June 18, 2007. <br />Sincerely, <br />~~,~~~-- <br />Daniel I. Hernandez <br />Senior Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver Grand lunaion • Durango Active and Inactive Mines <br />