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~. <br />National King Coal, LLC Telephone: Fax: Email: <br />(970)385-4528 (970)385638 nkc~NKCmine.com <br />P.O. Box 2827 4424 County Road 120 <br />Durango, Colorado 87302 Hesperus, Colorado 81326 ~=~ <br />August 16, 2007 <br />State of Colorado <br />Division of Mining, Reclamation Sz Safety <br />1313 Sherman St., Room 215 <br />Denver, Co. 80203 <br />Attn: Tom Kaldenbach <br />Re: Permit #C-1981-035, King I Mine <br />Annual Hydrologic Report 2007 <br />Deaz Mr. Kaldenbach, <br />AUG 1 7 2007 <br />pcr.F-vED <br />Division of Reclamation, <br />Mining and Safety <br />Please find enclosed the Annual Hydrologic Report for the King I Mine. Included is <br />information on both the Wiltze Field Well Analysis and the Haugen Well Analysis. <br />The Randy Haugen Well was not sampled this quarter. Randy suddenly sold his <br />home and moved to South Dakota in June and we have, so far, been unable to <br />contact the new owners to obtain permission to sample. <br />If you have any questions or comments, please contact me at (970) 385-4528 ext. <br />14. <br />Sincerely, <br />/G~, <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />