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Hydro-Environmental Solutions, Inc.
<br />hydrology, water quality and environmental consulting services
<br />August 26, 2008
<br />Mr. Jason Musick
<br />Colorado Division of Reclamation, Mining and Safety
<br />1313 Sherman Street, Room 215
<br />Denver, CO 80203
<br />Re: Cow Camp Project, NOI No. X-2008-229-01
<br />Phase III Amendment
<br />Dear Mr. Musick:
<br />via: FedEx 865345984765
<br />RECEIVED
<br />A " " ,40
<br />M4.'
<br />Division of Keciamation,
<br />Mining and Safety
<br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) approved the Cow Camp
<br />Exploration Project under Notice of Intent (NOI) No. X-2008-229-01 on May 28, 2008. The
<br />Division's letter of April 28, 2008 acknowledges Colorado Coal Resource, LLC (CCR) request to
<br />approve the NOI in three phases. A corporate surety, Bond No. 6510628, in the amount of
<br />$101,857.00, which was accepted by CDRMS on May 13, 2008, covers the reclamation liability of
<br />the proposed disturbances for all three phases of exploration activities.
<br />Phase II approval was contingent upon a completed cultural resource inventory for exploration sites
<br />ccu028, ccu029 and ccu032. Phase III approval was contingent upon a completed cultural resource
<br />inventory (exploration sites ccu025, ccu027, ccu030, ccu031 and ccu033) and an approved Bureau
<br />of Land Management (BLM) Coal Exploration License (exploration sites ccu012, ccu019, ccu023,
<br />ccu024, ccu025, ccu027, ccu030, ccu031 and ccu033).
<br />CCR submitted the results of the cultural resource inventory for the Phase II and Phase III
<br />exploration sites in a letter to you dated June 17, 2008. CDRMS approved the Phase II amendment
<br />(X-2208-229-01 AM-1) on June 18, 2008. In accordance with the Phase III approval requirements
<br />attached please find a copy of the approved BLM Coal Exploration License (Serial No. COC-
<br />73016). The license is effective September 1, 2008 and confers the right to conduct exploration
<br />activities on approximately 3,980 acres of lands with federal coal in Routt County, Colorado,
<br />described as:
<br />Township 5 North, Range 87 West, of the_6`h P.M.
<br />• Sec. 4, all
<br />• Sec. 5, lots 2-3, 5-6
<br />• Sec. 6, lot 8
<br />• Sec. 8, SEASEA, SEASEA, N/2SE/4
<br />• Sec. 9, all
<br />• Sec. 17, NE/4NE/4
<br />• Sec. 21, NEA, E/2SE/4, NEANEA
<br />• Sec. 22, N/2, W/2SW/4
<br />P.O. Box 772996
<br />5710`t' Street, Suite B
<br />Steamboat Springs, CO 810477
<br />970-846- 112
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