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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) tt46-4975 Fa~c: (719) 84G-4930 Cell: (719) ti59-0111 <br />ronthompso~~wildblue.net <br />March 19, 2007 <br />Mr. Kent Gorham RECEIVED <br />Division of Reclamation, Mining, and Safety <br />213 Centennial Building MAR C 0 2007 <br />1313 Sherman Street Divis,~ n of Reclamanon, <br />Denver, CO 80203-2273 Mining grid Safety <br />Re: New Elk Mine Permit No.: C-81-012 <br />Deaz Mr. Gorham: <br />By this letter, Picketwire Processing, LLC hereby submits two (2) copies of the 2006 Annual <br />Hydrology Report for the New Elk Mine. Tlris report includes data collected throughout the yeaz <br />for surface and ground water monitoring stations. All stations were monitored in accordance <br />with the approved monitoring plan. Water samples were not retrieved from NEW-2 and NEW-4 <br />in December as the bailer was lost within the NEW-2 airshaft. Samples from these sites will be <br />collected as equipment becomes available during the fast quarter of 2007. <br />If you have any questions or need additional information concerning this report, please let me <br />know. <br />Sincerely, <br />Ron Thompson <br />~l <br />`\, <br />~~ <br />~~ <br />~. ~~ <br />