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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 />April 2, 2009 <br />Safeco Insurance Company of America <br />Safeco Plaza <br />Seattle, WA 98185 <br />Re: Seneca II Mine (Permit No. C-1980-005) <br />Bond Release Application No. 3 (SL-3) <br />Bond No. <br />Dear Sir or Madam: <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 />This letter, as required by Rule 3.03.2(5)(a) of the Rules and Regulations, is to inform you that the <br />Division of Reclamation, Mining and Safety has issued a proposed decision to Approve Bond Release <br />Application No. 3 for the Seneca II Mine. This decision will be published in the Steamboat Pilot as <br />soon as possible. Publication of the notice initiates a thirty (30) day public comment period. If, within <br />thirty days, there are no requests for an adjudicatory hearing, the decision will become final. <br />One of several bonds for the operation is a Corporate Surety issued by your company (Bond No. <br /> , in the amount of $5,575,756.00. The total proposed release amount for SU is <br />$1,975,695.00. <br />Please be aware that this notification is not a request to initiate any action by Safeco Insurance <br />Company of America concerning Bond No. and is for your information only. Should Seneca <br />Coal Company, LLC chose to take action with regard to this bond release, they will contact you. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />Daniel T. Mathews <br />Environmental Protection Specialist <br />DTM/Ahd <br />cc: Johanna R. Cramer, CDMG <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines