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eak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846-4975 Fax: (719) 846-4930 Cell: (719) 858-0111 <br />e-mail: ronthompson~wildblue.net <br />June I5, 2007 <br />Mr. Kent Gorhani <br />Division of Minerals and Geology <br />13 t 3 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Lorencito Canyon Mine, Permit No. C-96-084 <br />Annual Reclamation Report - 2006 <br />Dear Mr. Gofiam: <br />RECEIVED <br />JUN 1 S 2001 <br />Divison of Reclamation, <br />Mirnng and Safefy <br />By this letter Lorencito Coal Company LLC hereby submits the 2006 Annual Reclamation Report for the <br />Lorencito Canyon Mine. Acreages have been calculated based on digitized information finm permit Map <br />2.05.3-5 Soil Sample Location and Soil Distribution Plan. <br />All required backfilling and grading was completed prior to 2006. A permit revision was submitted to and <br />approved by the Division in 2006 allowing use of soil material obtained from the surface owner from <br />outside the permit area. Approximatety 8,200 yards of soil were transported to the mine and spread on <br />areas E3, S3, S4 and portions of areas ~1, E-2, N2 and W5. <br />A total of 38.5 acres were seeded in 2006 of which 9.8 acres were hydroseeded and 28.7 acres were <br />broadcast seeded. Hydroseeding included mulch, fertilizer and soil enhancers humors and mycorrhvae. <br />Hydroseeding was applied mainly to steeper slopes that also had deficient soil material. Areas seeded are <br />shown on Map ARR-l. Application rates are listed in table ARR-3. <br />If you have any questions or require further information regarding 2006 reclamation activities, please <br />contact me. <br />Sincerely, <br />Ron Thompson <br />Enclosures: <br />CDMG Annual Report Form <br />Map ARR-1 <br />Packing slips/Shipping Information <br />