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J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />July 9, 2008 <br />RE: Snowcap Coal Company, Inc. <br />P. O. Box 1430 <br />Palisade CO 81526 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Snowcap Coal Company, Inc. (SCC) is responsible for the reclamation of the Roadside North and <br />South Portals under Division of Reclamation, Mining and Safety (DRMS), Permit No. C-81-041. <br />The mine ceased its underground workings in December, 1999 and reclamation continues to <br />progress at this site. <br />One provision of the Division of Reclamation, Mining and Safety s Rules is that the mine must be <br />bonded for the estimated reclamation cost. Due to the continuation of reclamation at this site, <br />SCC has formally requested a partial bond release from the DRMS. SCC has a bond liability of <br />$2,233,045 and has asked that up to $627,000 of that amount be released. In accordance with <br />the Division's Rule 3.03.2(1), SCC is required to send written notice of its bond release request to <br />adjacent land owners, surface owners and various local governing bodies. <br />The area for which the bond release is being requested is the Roadside Mines' South Portal and <br />Overland Conveyor, approximately 18 acres, located approximately three miles northeast of <br />Palisade, CO at the Interstate 70, Cameo Exit No. 46. The reclamation work has been done in <br />T1 OS, R98W, Section 34. The Roadside South portal and the upper and lower areas of the <br />Roadside South Mine site have been backfilled and regraded to approved contours. The <br />Overland Conveyor River Tube/Bridge was removed and associated areas regraded. Several <br />buildings and structures have been removed from the site. All work has been performed in <br />accordance with plans approved by the DRMS. <br />Sincerely, <br />/.4A--- <br />J. E. Stover, P.E. <br />Consulting Engineer