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SL (-0 <br />Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846-4975 Fax: (719) 846-4930 Cell: (719) 859-0111 <br />ronthompson@wildblue.net <br />June 7, 2008 <br />AN 1 Z `1008 <br />Division ui neciamation, <br />Kent Gorham Mining and Safety <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Golden Eagle Mine Permit No. C-81-013 <br />Phase III Bond Release Request <br />Response to Adequacy Review <br />Dear Mr. Gorham: <br />New Elk Coal Company has acquired both the New Elk and Golden Eagle Mining <br />permits and is now responding to the adequacy review of Surety Release No. 6 for <br />the Golden Eagle Mine. The following issues were addressed by the State by <br />letter dated December 21, 2007. <br />Groundwater Monitoring Wells <br />NECC believes that the groundwater monitoring wells NM-20, NM-21, NM-22, <br />NM-23 and SF-2 will provide valuable background and future information for <br />coal reserves currently planned for development by NECC. As a new mine plan is <br />developed for the New Elk Mine for these reserves, these and other new wells will <br />become part of the hydrologic monitoring plan. Therefore, NECC requests that <br />these wells be withdrawn from consideration for reclamation and bond release at <br />this time, and anticipates transferring these wells to the New Elk Mine permit at a <br />later date. <br />Well SF-1 has been abandoned in accordance with State Regulations. <br />Reclamation of the access road remains to be completed. Ground water well LA- <br />218 also remains for future abandonment. NECC appreciates the detailed review <br />of the status of this well by DRMS and will reclaim this well in the near future. <br />Reclamation bonding, as determined appropriate by the State, should continue to <br />be held by DMRS for these wells.