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<br />OXBOW <br />MINING, LLC <br />I~` <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929-5122 Fax <br />(970)929-5177 <br />February 28, 2008 <br />~~~~ <br />Mr. Dan Hernandez ~Afr ~`~ ~~~~ <br />DivMinfi v, ~`G~~an'ation, <br />Senior Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety ~' any Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Oxbow Mining, LLC -Notice of Intent for 2008 <br />Dear Mr. Hernandez: <br />Oxbow Mining, LLC (OMLLC) herein requests the approval of the enclosed 2008 Notice of <br />Intent to Explore (NOI) for completion of drilling activities associated with mine planning and <br />future development of the Elk Creek Mine. <br />The drilling program, per this NOI, involves completion of 14 exploration holes, some of which <br />are located within the Elk Creek Mine Permit Area C-1981-022. Much of this area had <br />previously been included under the Exploration License COC-67112 and NOI-CX-2004-223-OS <br />and is currently the subject of Exploration License COC-71108. We expect this COC-71108 <br />license to be issued during the 2° quarter 2008. <br />In conjunction with drilling and completion activities, in-hole logging and tests, as well as core <br />samples of the roof, coal seam and floor materials will be collected from the drill holes and <br />analyzed to characterize the geotechnical characteristics and conditions of the mine roof and <br />floor, as well as to determine coal quality. This NOI application submittal consists of the <br />following components: <br />• This transmittal Letter <br />• Executed NOI Application Form <br />• Attached Description of Affected Lands, Exploration Activities, and Reclamation <br />Cost Factors <br />• Plan Map <br />Block clearance surveys for cultural and paleontological resources and threatened and <br />endangered (T & E) species assessments were previously conducted in 2005 and previously <br />forwarded to the Division. The PAP Volume 8, Exhibit 2.04-E7 contains copies of these reports. <br />Raptor nest site and other required sensitive specie surveys are generally surveyed in the <br />May/June timeframe for the NOI roads and sites. The areas affected by this NOI is located in the <br />• Page 1 <br />