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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 />February 25, 2009 <br />Mr. Ross Gubka, P.E. <br />Western Fuels - Colorado <br />P.O. Box 628 <br />Nucla, CO 81424 <br />Re: New Horizon Mine - Permit No. C-1981-008 <br />SL-11- Partial Phase I and Phase II Bond Release <br />Second Adequacy Review <br />Dear Mr. Gubka: <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 of Reclamation, Mining and Safety ("Division") received your application for SL- <br />11, Partial Phase I and Phase II Bond Release at the New Horizon Mine, on May 13, 2008, and <br />called it Complete for purposes of filing on August 5, 2008. A bond release inspection occurred <br />on August 25th, and the Division's Inspection Report was issued on September 8, 2008. On <br />October 10, 2008, the Division issued its Preliminary Adequacy Review letter. A response to <br />that review was received from Greg Lewicki & Associates, Inc. (GLA) by the Division's Denver <br />office on November 18, 2008 and by the Durango office on December 1, 2008. <br />The SL-11 adequacy response submittal has now been reviewed. Comments made by the <br />Division's preliminary review are included below, for reference. New comments appear in <br />bold text. <br />Many of the Division's original comments were related to the question of whether the <br />reconstructed County Roads will be included with SL-11. It has been agreed that the County <br />Roads will be excluded from SL-11 (for additional explanation, please refer to Item 2, below). <br />This determination effectively eliminates Item Nos. 2, 10, 13, 14, 15, 22 and 23 from the current <br />application. However, the issues raised by the Division should be considered by WFC in any <br />upcoming bond release applications covering the road reconstruction. <br />Remaining issues to be resolved before SL-11 can be approved include Item Nos. 3, 17, 19 and <br />21. <br />Application - Page 1 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines