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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 />December 23, 2008 <br />Ronald G. Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />Re: Permit Renewal No. 5 (RN-05) <br />New Elk Mine (Permit No. C-81-012) <br />New Elk Coal Company, LLC. <br />Dear Mr. Thompson: <br />COLORADO <br />D I V I S ION 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 your adequacy responses on November 25, 2008 regarding Permit <br />Renewal No. 5 (RN-05) for the New Elk mine. Given the fact that the permit boundary is <br />planned to be expanded and the Apache Canyon airshafts are planned to be included in the <br />permit application, we are extending the decision date for the Permit Renewal No. 5 (RN-05) <br />to February 24, 2009. Concurrently, we are updating the cost estimate with current unit costs <br />and will forward to you for review as soon as it is complete. <br />With regard to the desire to expand the permit boundary and add facilities, the Division <br />requests that New Elk Coal Company (NECC) submit a permit revision after this permit <br />renewal (RN-05) is approved in accordance with Rule 2.08.4(1)(d). Boundary changes will <br />be necessary on a variety of maps, including, but not limited to, surface and coal ownership. <br />Section 2.03 information regarding adjacent landowners will also be required. Review of all <br />appropriate portions of Rule 2 and Rule 4 will be necessary in light of the plan to expand the <br />permit boundary. <br />The Division reviewed the information submitted with regard to the permit renewal and has <br />the following additional questions or responses to our original concerns. Our original <br />questions are included (or paraphrased) in italics. <br />1. NPDES permit - Exhibit 22 <br />We have no further questions. The Division will add the new permit to Exhibit 22. <br />One error was noted on page 4 of the rationale. The paragraph at the bottom of page <br />4 incorrectly equates 2500 gpm as 5.6 MGD. 2500 gpm is 5.6 CFS or 3.6 MGD. You <br />may want to have this corrected by the WQCD. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction 9 Durango Active and Inactive Mines