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~ENECA Seneca Coal Company <br />May 9, 2008 <br />Grassy Creek Holding Company, LLC <br />P.O. Box 774406 <br />Steamboat Springs, CO 80477 <br />To Whom It May Concern; <br />Seneca Coal Company, (CDMG Permit No. C-80-005, approved September 23, 1981) intends to request release of <br />Phase II bond liability on 1,793.5 acres of its reclaimed lands at the Seneca II Mine. A surety bond in the amount <br />of $7,183,489 is currently in place of which $4,289,419 is being requested for release. Those portions of the mine <br />for which Phase II bond release is requested were topsoiled and revegetated from the beginning of nuning through <br />2005 in accordance with the Colorado Division of Minerals and Geology (CDMG) rules and regulations. <br />The Seneca II Mine is located approximately nine (9) miles southeast of Hayden, Colorado. The specific area to <br />which this Phase II bond release request applies is included within the Permit Area located as follows: <br />TSN. R87W <br />Section 1: All <br />Section 2: All <br />Section 3: Portions of E'/zE'/z <br />Section 11: NE'/<, N'/zNW /4, SE'/4NW'/4, NE'/<SE'/4, Portions of SE'/4SE'/4, and NW'/4SE'/4 <br />Section 12: All <br />Section 13: N'/ZN'/zN'/z <br />T6N. R87W <br />Section 27: Portions of SE'/4SW'/<, SW /4SW'/<, SW /4SE'/4, and SE'/<SE'/a <br />Section 34: EYzE'/2, NW'/oNE'/<, Portions of NE'/oNW'/o, and SWY<NE'/< <br />Section 35: W'/2, W'/zE'/2, Portions of SE'/4NE'/4, and E'/ZSE'/4 <br />Section 36: Portions of S'/zS'/z <br />TSN, R86W <br />Section 6: W'/zW'/zSW'/4 <br />Section 7: W'/zNW'/aNW'/4, N'/zSW'/aNW'/4 <br />All west of the 6th Principal Meridian, totaling approximately 3,457 acres. The USGS 7.5 Minute Quadrangle Maps <br />for Milner and Mt. Harris contain the described affected area. A copy of the bond release application is available <br />for public inspection at the Hayden Public Library, 201 E. Jefferson Avenue, Hayden, Colorado 81639. Written <br />comments or objections or requests for public hearing or informal conference concerning this application may be <br />submitted to, and additional information obtained from, the Colorado Division of Minerals and Geology, 1313 <br />Sherman Street, Room 215, Denver, Colorado 80203-2273, (303) 866-3567. Comments must be received within <br />30 days of the last publication of this notice or within 30 days of the onsite inspection, whichever is later. <br />Sincerel , <br />~~~ <br />Roy A. Karo <br />Reclamation Manager <br />Seneca Coal Company • P.O. Box 670 • Hayden, Colorado 81639 <br />Telephone (970) 276-5219 • FAX (970) 276-5222 <br />