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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />April 17, 2008 <br />Ron Thompson <br />Peak Project Management <br />34115 Co. Road 20.8 <br />Trinidad CO 81082 <br />RE: 2007 Annual Reclamation Report Review, New Elk Mine, #C-81-012 <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />-&- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has completed review of the 2007 Annual Reclamation Report (ARR) for <br />the New Elk mine. The Division notes the interseeding of four species that were <br />inadvertently excluded in seeding efforts in 2003, 2005, and 2006. Interseeding is <br />allowed by Rule 4.15.7(5)(g) during the first four years of the ten year liability period. <br />The nature, extent, and location of the interseeding is described in the report as also <br />required by this Rule. <br />One error was noted in the reporting form. <br />On the 2007 ARR reporting form, the "acres backfilled and graded" when added <br />to the "acres in long-term facilities" must equal "total disturbed acres". The 2007 <br />ARR form indicates 1.84 acres backfilled and graded during the calendar year. <br />These 1.84 acres must then be subtracted from the acres in long-term facilities. <br />Therefore, the acres in long-term facilities must be exactly 91 acres. Please <br />correct the form and re-submit. <br />This concludes our review. Please respond within 30 days of receipt of this letter. If <br />you have any questions, please call me. <br />Sinc ely, <br />K nt Gorham <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and lnac[we Mlnes <br />