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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 />November 14, 2008 <br />Ronald G. Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Re: Adequacy Review, Permit Renewal <br />New Elk Mine (Permit No. C-81-012) <br />New Elk Coal Company, LLC. <br />Dear Mr. Thompson: <br />No. 5 (RN-05) <br />COLORADO <br />D I V I S 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 />We have completed a review of the permit application for the New Elk mine regarding Permit <br />Renewal No. 5 (RN-05). The application was received on August 26, 2008 and found <br />complete on August 28, 2008. <br />The permit application was reviewed with emphasis on those areas of the operation and <br />reclamation plan that are most likely to be of significance during the next five-year permit <br />term. The Division is updating the reclamation cost estimate using current unit costs and will <br />forward the completed estimate to you for review as soon as it is completed. <br />Please respond to the following questions or comments as soon as possible. <br />Please update Exhibit 22 with all current NPDES permits that have been issued to <br />New Elk Coal Company. <br />2. Please review and update, if necessary, Exhibit 35 regarding landowner desires to <br />retain the railroad track and associated road. <br />3. The Upland Wildlife Reference Area for the New Elk Mine is located within the former <br />Golden Eagle Mine permit area. How will New Elk Coal Company ensure the integrity <br />of this area from disturbance by others? <br />4. Please review and update permit text beginning on page 2.05-1 regarding the current <br />status of the New Elk Mine. <br />5. Please review and update permit text beginning on page 2.05-5 regarding the <br />operation plan within the permit area. <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines