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<br />Page 3 of 3 <br />0 <br />• Groundwater Point of Compliance: Did we ever determine whether the mine needed a ground water <br />point of compliance? If so, did we designate a particular well to be the point of compliance? Is that well <br />now reclaimed? Have we concluded that the mine has not adversely affected the applicable local <br />groundwater standards? <br />• Federal Lands: Golden Eagle is currently classified a "federal" mine. If I remember correctly, this is due <br />to at least one tract of federal coal or federal surface that is (or previously was) present within the mine's <br />permit boundary. At the present time, is there any federal coal and/or federal surface within the current <br />permit area? If so, is this federal coal/surface in the portion of the permit area that is being requested for <br />Phase III bond release? <br />• Release of Liability of Surface Areas Overlying Underground Coal Mine Workings: Will SL06 involve <br />us releasing Basin Resources/New Elk Coal Company from liability of surface areas overlying underground <br />coal mine workings (aka "affected area")? If so, do we know what that affected area acreage figure is? <br />• OSM Concurrence: As this is a federal mine, we will need OSM's concurrence on our proposed decision. <br />This will involve OSM seeking BLM's concurrence. Which BLM office will we inform of our proposed <br />decision? <br />• Remaining Reclamation Liability/Inspection Frequency: Assuming this bond release application is <br />approved, what would the remaining disturbed area acreage and affected area acreage figures be? What <br />would the Phase 1/11/III liability be for the remaining surface disturbances? I ask this because if all the <br />potential remaining surface disturbances have been Phase II released, we should document in the SL06 <br />Findings that we will reduce our inspection frequency to quarterly Completes once the proposed decision <br />becomes final. <br />. Remaining Bond Amount: Assuming we propose to approve the SL06 app, will the remaining <br />reclamation liability be such that we will be down to the $10,000 minimum amount for bond monies <br />required to be held by us? <br />6/20/2008