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!~ National Kin Coal, LLC Telephone: Fax: Email: <br />9 (970)385.4528 (970)385-4638 nkc@NKCmine.com <br />P.O. Box 2827 4424 County Road 120 <br />Durango, Colorado 81302 Hesperus, Colorado 81326 ~= <br />October 13, 2007 RECEIVED <br />State of Colorado Q~T ~ ~ Z~0~ <br />Division of Reclamation, Mining & Safety ~W{8(wtQt Rac4~mation, <br />1313 Sherman Street, Room 215 r~rs~ and spy <br />Denver, Colorado 80203-2273 <br />Attention: Tom Kaldenbach, Reclamation Specialist <br />Re: 3rd Quarter 2007 Surface Subsidence Inspections <br />3rd Quarter 2007 Huntington Ditch Inspections <br />Dear Mr. Kaldenbach: <br />An inspection of the Crawford Ranch property on August 17, 2007 for evidence of subsidence related <br />features revealed a fairly large crack extending across the two-track road over the area of Section No. 1 <br />West. Mike Crawford stated that the crack appeared to be healing and that he would let us know if he <br />thinks it should be repaired. Mike suggested that we check it again next spring and make repairs at that <br />time if he feels it necessary. The two-track road involved is in a very remote and rarely visited part of his <br />property. He said he will continue to monitor the situation and notify us if additional subsidence cracking <br />is noticed. <br />Dan Huntington has not mentioned any subsidence related issues. <br />Please call Tom Bird at (970) 385.4528 x 14 if you have any questions or comments. <br />Sincerely, <br />Tom Bird <br />Manager, Coai Services <br />National King Coal, LLC <br />