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a <br />National King Coal, LLC Talepttone: Fax: <br />(970)385-4528 (970)385-4638 Email: <br />nkc~NKCmine.com <br />P.O. Box 2827 4424 County Road 120 ~' <br /> <br />Durango, Colorado 81302 <br />Hesperus, Colorado 81326 ~ <br />~` <br /> ocrFIVED <br />August 16, 2007 <br />State of Colorado <br />Division of Mining, Reclamation & Safety <br />1313 Sherman St., Room 215 <br />Denver, Co. 80203 <br />Attn: Tom Kaldenbach <br />Re: Permit #C-1981-035, King II Mine <br />Annual Hydrologic Report 2007 <br />Dear Mr. Kaldenbach, <br />AUG 1 72007 <br />Division of Reclamation, <br />Mining and Safety <br />Please fmd enclosed the Annual Hydrologic Report for the King II Mine. <br />Included is information on the #1 Upgradient Well, #2 Downgradient Well and <br />the Hay Gulch Ditch. <br />If you have any questions or comments, please contact me at (970) 385-4528 x <br />14. <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />