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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 />PARTIAL BOND RELEASE LETTER <br />September 16, 2008 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />CAM Mining LLC has reclamation responsibility under Division of Reclamation, Mining and <br />Safety, Permit No. C-1981-020. This responsibility includes the Loma Loadout and the <br />Munger Canyon Mine and its associated facilities. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine <br />must be bonded for the estimated reclamation cost. Now that the reclamation work has <br />been performed, CAM Mining LLC has formerly requested a partial bond release from the <br />Division of Reclamation, Mining and Safety. CAM Mining LLC, has a bond liability of <br />$230,000 and has requested a release $130,000. In accordance with the Division's Rule <br />3.03.2(1), CAM Mining LLC, 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 partial bond release are being requested is at the Loma Loadout and <br />Munger Canyon Mine site. The mine site is located in Garfield County, approximately 18 <br />miles north of Loma, CO along State Highway 139. The mine site is located in the SW/4 of <br />Section 27 the N/2S/2, S/2N/2 and N/2NE/4 of section 28 and the S/2NE/4 Section 29, <br />Township 7 South, Range 102 West, 6th P.M. The Loma Loadout is located approximately <br />one-half mile east of Loma, Colorado. The permit area is encompassed within portions of <br />the SW'/4SW'/4 of Section 34 Township 2 North, Range 3 West, Ute Meridian and Portions <br />of the NEI/4NW1/4 of Section 3 Township 1 North, Range 3 West, Ute Meridian. <br />During 2001 the 2.9 acre Loma loadout was contoured and seeded. During 2006 a 1.6 <br />acre light use road located in Munger Canyon was contoured and seeded. The mine portal <br />area, haul road and coal mine waste disposal area were contoured and seeded during <br />2007. All buildings, structures and facilities at the mine site and Loma loadout were <br />removed. Sealing of the underground mine openings was performed in accordance with <br />the approved plan and MSHA regulations. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer