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_(735' <br />National King Coal, LLC (970)385528 (970)385-0638 nkc@NKCmine.com <br />P.O. Box 2827 4424 County Road 120 <br />Durango, Colorado 81302 Hesperus, Colorado 81326 ,-,0 ~ <br />July 14, 2005 <br />State of Colorado ~~cE~v~~ <br />Division of Minerals and Geology p31pp5 <br />1313 Sherman Street, Room 215 N0~ <br />Denver, Colorado 80203-2273 aM,~e~sa~ec'' <br />Attention; Tom Kaldenbach, Reclamation Specialist <br />Re: 2nd Quarter 2005 Surface Subsidence Inspection <br />2nd Quarter 2005 Huntington Ditch Inspection <br />Dear Tom: <br />On Apri126, 2005, previously Located subsidence related cracks on the Crawford Property were inspected <br />and re-surveyed. Present for the survey were surveyors from Maness and Associates of Cortez, Colorado. <br />Please see attached report from Maness and Associates. <br />Subsidence areas and monuments were checked for movement. There is no indication that any areas <br />around the Crawford residence have moved. Please find attached a copy of this survey and other regular <br />surveys conducted in this area. <br />An inspection of other areas, including the Huntington and Crawford Ditches, revealed no adverse <br />effects from subsidence. <br />Please call if you have any questions. <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />