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National King Coal, LLC Telephone: Fax: Email: <br />(970)3854528 (970)3854638 nkc@NKCmine.com <br />P.O. Box 2827 4424 County Road 120 <br />Durango, Colorado 81302 Hesperus, Colorado 81326 ~O ~ <br />September 6, 2005 <br />State of Colorado <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203-2273 <br />Attention: Tom Kaldenbach, Reclamation Specialist <br />Re: 3rd Quarter 2005 Surface Subsidence Inspection <br />3rd Quarter 2005 Huntington Ditch Inspection <br />Dear Tom: <br />Inspections of areas over mined-out of the areas of the King Coal Mine revealed no new evidence of <br />subsidence cracks. <br />Subsidence areas were checked for changes. None of the pre-existing cracks appear to have grown, and <br />most are filling in naturally, which is usually the case. There is no indication that any areas around the <br />Crawford residence have moved. <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 />Sincerel , <br />Tom Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />