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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 />June 19, 2008 <br />John Weinman <br />Hydro-Environmental Solutions, Inc. <br />57 10th Street, Suite B <br />Steamboat Springs, CO 80477 <br />RE: Colorado Coal Resources, LLC <br />Notice of Intent to Explore (NOI) <br />File No. X-2008-229-01 AM1 <br />Dear Mr. Weinman, <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <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 reviewed the above-referenced NOI Amendment in accordance with the applicable <br />provisions of the Colorado Surface Coal Mining Act ("Act") and the Regulations of the Colorado <br />Mined Land Reclamation Board for Coal Mining ("Regulations), and has the following comments. <br />Notification of Completeness [Regulation 2.02.21 <br />Notice of Intent NO. X-2008-229-01 AM1 is Complete <br />Determination of Proposed Activities as Coal Exploration [Regulations 2.02.2(3) and 1.04(22)] <br />The activities described in the Notice of Intent qualify as "coal exploration" as defined at Regulation <br />1.04(22). The coal exploration activities described will involve removal of 250 tons or less of coal. <br />Determination of Substantial Natural Land Surface Disturbance [Regulations 2.02.2(3) and <br />1.04(127)] <br />The coal exploration activities described will substantially disturb the natural land surface, as defined <br />at Regulation 1.04(27). <br />Determination of Amount of Performance Bond [Regulation 3.05.2(1)] <br />The Division acknowledges that CCR requested that NOI X-2008-229-01 be implemented in three <br />phases. The Division issued an Acceptance of Notice of Intent for Phase I of the NOI (Sites CCU013- <br />CCU018 and CCU022) upon receiving the bond in the amount of $101,857.00 and the USDOI BLM <br />approval of the exploration plan for exploration sites CCU-016 and CCU-017. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines