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ydro-Environmental Solutions, Inc. <br />hydrology, water quality and environmental consulting services <br />May 20, 2008 <br />via. Certified tilail, Rcccipl Rugac;zW l <br />SEC f,%je00051820000305264845 <br />Mr. Tim Kelly <br />Colorado Board of Land Commissioners <br />1313 Sherman Street, Room 621 <br />Denver, CO 80203 <br />303-866-3454 <br />May 2 ? Zooa <br />pvvisvon 01 ,cedSgety <br />069Q n, <br />6Q and s <br />Re: State Exploration Permit No. EP 2724 <br />Coal Exploration Notice of Intent No. X-2008-229-01. Proof of Reclamation Bond <br />Dear Mr. Kelly: <br />Colorado Coal Resources, LLC. (CCR) is in receipt of Colorado State Exploration Permit EP 2724. <br />In accordance with Condition No. 4, please find a copy of the Corporate Surety that has submitted to <br />the Colorado Division of Reclamation, Mining and Safety (CDRMS) for Notice of Intent No. X- <br />2008-229-01. The Corporate Surety, Bond No. 6510628, with an effective date of May 12, 2008, is <br />in the amount of $101,857.00. <br />Please note that this reclamation bond is slightly more than the estimate submitted with the Cow <br />Camp Project 2008:State' Exploration Permit application. the CDKMS reviewed u _R s reclarriatiOu <br />cost estimate and : determined,-that mobilization and demobilization costs needed to be included. <br />Consequently, the reclamation. estimated changed from $97,593.06 to the amount of the bond. If <br />requested, CCR will send you a copy of CDRMS's calculation work sheets that document how the <br />revised bond estimate was calculated. <br />Thank you for your assistance with this exploration permit. If you have any questions regarding the <br />exploration program please feel free to contact the undersigned at 970-871-6125. <br />Regards <br />Hydro-Environmental Solutions, Inc. <br />(on behalf of Colorado Coal Resources, LLC.) <br />ohn Weinman <br />Project Manager <br />attach <br />c,c:. G. Wagner, Peabody Energy <br />Jerry Nettleton, Peabody Energy (w/out) <br />Vern Pfannenstiel, Peabody Energy (w/out);. , <br />Jason Musick, Colorado Division of Reclamation, Mining and Safety (w/out) <br />P.O. Box 772996 <br />5710'h Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-871-6125 * 970-871-6195 (fax)