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Peak Project Management, LLC <br />34715 County Road 20,8 <br />Trinidad, CO 81082 <br />Telephone: (719) 848.4975 <br />Fan (719) 848-4930 Cell: (719) 859Ai 11 <br />e-mail: ronthompsorr~sensonics.org <br />RE~,~, ~/~= J <br />February 15, 2007 <br />Mr. Kent Gorham <br />Division of Minerals and Geology <br />1313 Sherman Street, Raom 215 <br />Denver. CO 80203 <br />FEB 7 ~ [uU1 <br />Division or ~::, <br />Mining and Safetyon, <br />Re: Lorencito Canyon Mine, Permit No. C-96-084 <br />Annual Hydrology Report - 2006 <br />Dear Mr. Gorham: <br />By this letter Lorencito Coal Company LLC hereby submits the 2006 Annual Hydrology Report for the <br />Lorencito Canyon Mine. All sites were sampled in accordance with the approved Hydrologic Monitoring <br />Plan. <br />If you have any questions or require further information, please contact me. <br />Sincerely, <br />Ron Thompson <br />Enclosure: 2006 Annual Hydrology Reports (2) <br />