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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 />September 2, 2008 <br />John C. Weinman <br />Hydro-Environmental Solutions, Inc <br />P.O. Box 772996 <br />Steamboat Springs, CO 80477 <br />RE: Colorado Coal Resources, LLC <br />Notice of Intent to Explore (NOI) Amendment <br />File No. X-2008-229-01 AM2 ("Phase III") <br />Dear Mr. Weinman: <br />COLORADO <br />D I V 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 received the above referenced NOI Amendment application on August 28, 2008. We have <br />the application in accordance with the applicable provisions of the Colorado Surface Coal Mining Act <br />("Act") and the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining <br />("Regulations"). We provide the following comments: <br />Notification of Completeness [Regulation 2.02.21 <br />Notice of Intent X-2008-229-01 AM2 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 at <br />Regulation 1.04(27). <br />Determination of Amount of Performance Bond [Regulation 3.05.2(1)] <br />Approval of the original NOI ("Phase, I") granted approval to drill nine of twenty-one drill holes. The <br />Division received a bond in the amount of $101,857 on May 9, 2008 for all twenty-one Cow Camp <br />Project drill holes. As such, the nine drill holes requested for approval under this NOI Amendment AM2 <br />have already been bonded. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand lunction • Duraneo Artiva and Inartivt MinPc