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MOUNTAIN (OA1 <br />(OMPANYL.L.C. West Elk Mine <br />A Subsidiana of Arch Western Resources. LLC P 0 Boa 591 <br />5174 Hisillway 133 <br />Somerset, CO 51434 <br />(970) 929-5015 <br />Fay; (970) 929-5595 <br />July 11, 2008 <br />Mr. Tom Kaldenbach RECr VE® <br />Colorado Division of Reclamation Mining and Safety 2??8 <br />1313 Sherman Street, Room 215 JUL 11 <br />Denver, CO 80203 Division or,Reclamation, <br />Mining and Safety <br />RE: Mountain Coal Company L.L.C., West Elk Mine, Permit No. C-80-007, Minor <br />Revision No 347, Annual Operating Plan Panel E 1 Longwall Panel Methane Drainage <br />Wells. <br />Dear Mr. Kaldenbach: <br />Mountain Coal Company, L.L.C. (MCC) submits the enclosed minor revision application for <br />constructing MDWs on the E 1 Panel in E Seam on the South of Divide Area. This revision <br />affirms the conceptual approach (TR-111) as the actual plan for the drilling of MDWs on the <br />USFS lands in 2008. This minor revision specifically addresses the number of pads, drill holes, <br />lengths and locations of the roads and has not changed since the submittal of TR-111. The <br />annual operating plan is an instrument provided to the USFS by MCC on an annual basis. The <br />purpose is so that the USFS can inforin the public and other stakeholders where the project is <br />occurring on USFS managed lands. <br />The revision addresses surface disturbance on Federal Lease C-1362. The Final Environmental <br />Impact Statement (FEIS) and Record of Decision for the Deer Creek Shaft and E Seam Methane <br />Drainage Wells Project (Exhibit 79) approved the drilling on the PR-10 area. <br />To help facilitate your review, attached is the annual operating plan and map of the E 1 Panel. <br />The document was reviewed by the USFS and was signed and approved by Levi Broyles, Paonia <br />District Ranger. <br />As stated previously in MCCs TR-111, our experience reclaiming these areas cost approximately <br />$15,000 per pad, including plugging and abandonment of the wells, and $30,000 per mile of <br />roadway. Based on 14 pads and 8,005 feet of roadway, MCC believes the reclamation cost for the <br />drilling of E 1 Panel would be $255,483. A bond rider has been submitted to and accepted by the <br />Division in the amount of $500,000.00. The total bond held by the State isl4.5 million dollars. <br />The CDRMS form for permit application and the public notice are attached to this letter of <br />transmittal.