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Hydro-Environmental Solutions, Inc. <br />hydrology, water quality and environmental consulting services <br />February 17, 2009 <br />via: Certified Mail, Receipt Requested <br />70051820000305264500 <br />Mr. Tim Kelly <br />Colorado Board of Land Commissioners RECEIVED <br />1313 Sherman Street, Room 621 <br />Denver, CO 80203 FEB 18 2009 <br />303-866-3454 <br />Division o? „?uama?n, <br />Re: State Exploration Permit No. EP 2742 g and Safely <br />Coal Exploration Notice of Intent No. X-2009-231-00, Proof of Reclamation Bond <br />Dear Mr. Kelly: <br />Sage Creek Holdings, LLC. (Sage Creek) is in receipt of Colorado State Exploration Permit EP <br />2742. In accordance with Condition No. 4, please find a copy of the Corporate Surety that has <br />submitted to the Colorado Division of Reclamation, Mining and Safety (CDRMS) for Notice of <br />Intent No. X-2009-231-00. The Corporate Surety, Bond No. 6601879, with an effective date of <br />February 12, 2009, is in the amount of $84,251.00. <br />Please note that this reclamation. bond is slightly more than the estimate submitted with the Cow <br />Camp Project 2009 State Exploration Permit application. The CDRMS reviewed Sage Creek's <br />reclamation cost estimate etermm at mobilization and demobilization costs needed to )le <br />included. Consequently, a reclamation estimated changed from $84,010.00 to the amount,of the . <br />bond. If requested, Sage Creek will send you a copy of CDRMS's calculation work sheets that <br />document how the revised bond estimate was calculated. <br />Thank you for your assistance with this exploration permit. If you have any questions regarding the <br />exploration program please feel free to contact the undersigned at 970-846-5112. <br />Regards <br />Hydro-Environmental Solutions, Inc. <br />(on behalf olf Sage Creek Holdings, LLC) <br />[-,J <br />hn Weinman <br />Project Manager <br />attach <br />cc: - Scott Cowman, Twentymile Coal Company (w/out) <br />Jason Musick, Colorado Division of Reclamation, Mining and Safety (w/out) <br />P.O. Box 772996 <br />5710ei Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-871-6125.970-871-6195 (fax)