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ON3 <br />IN REPLY REFER TO: <br />United States Department of the Interior <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />P. O. Box 46667 <br />Denver, Colorado 80201-6667 <br />Ronald W. Cattany, Director <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80202 <br />November 13, 2008 <br />RECEIVED <br />Nov 17 2008 <br />pwis?un ?, ,.?c?dmation, <br />Mining, and Safety <br />RE: Phase I, II, and III Bond Release Application (SL-6), New Elk Coal Company, LLC, Golden Eagle <br />Mine, Permit No.C-1981-013, Proposed Decision and Findings of Compliance <br />Dear Mr. Cattany: <br />This letter acknowledges the Office of Surface Mining (OSM), Western Regional Coordinating Center (WRCC), <br />Denver Field Division's (DFD) receipt and review of the above Proposed Decision and Findings of Compliance <br />document prepared by the Division of Reclamation, Mining and Safety (DRMS) dated August 13, 2008. DFD <br />agrees with the findings and decision document and hereby provides OSM concurrence for the above bond release <br />action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, Section 24, of the Colorado <br />State-Federal Cooperative Agreement. <br />A thorough summary of previous bond release actions and the operational and reclamation history of the mine <br />are accurately captured in the above DRMS Proposed Decision. DRMS Permit C-1981-013 was transferred from <br />Basin Resources, Inc. (BRI) to NRCC effective April 29, 2008. Public and landowner notifications of the bond <br />release application were provided by the former permittee BRI. The bond release inspection notifications provided <br />by DRMS, the DRMS's inspection findings for the bond release inspection, and related correspondence is <br />documented in the Proposed Decision. OSM, the Bureau of Land Management (BLM), and all affected landowners <br />were notified of the bond release inspection. <br />BRI, DRMS, XTO Energy, Las Animas County, and the Colorado Division of Wildlife participated in the bond <br />release inspection on October 24, 2006. OSM and BLM did not participate due to other commitments. BLM <br />concurred with the DRMS Proposed Decision in a letter dated September 5, 2008 (copy enclosed). DBMS received <br />two objections regarding the BRI / SL-6 bond release application which were forwarded to BRI on October 30, <br />2006. BRI submitted the bond release application on September 20, 2006; and was the permittee on October 30, 2006 <br />Both objections have been resolved, and are documented in the DRMS Proposed Decision. <br />The DRMS Proposed Decision documents the applicant's compliance with the Colorado approved regulatory <br />program at Rule 3.03.2, and DRMS's bond release guidelines dated April, 18, 1995. Bond release criteria found <br />in the above regulatory provisions have been met or exceeded by the permittee. <br />TAKE PRIDE ?'?'INAMERICA ="''+{