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J. E. STOVER & ASSOCIATES, INC. <br />2352 N 7"' Street, Unit B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />May 18, 2009 <br />RE: Snowcap Coal Company, Inc. <br />P. O. Box 1430 <br />Palisade CO 81526 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Snowcap Coal Company, Inc. (SCC) is responsible for the reclamation of the Roadside North and <br />South Portals under Division of Reclamation, Mining and Safety (DRMS) Permit No. C-81-041. <br />The mine ceased its underground workings in December 1999 and reclamation continues to <br />progress at this site. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be <br />bonded for the estimated reclamation cost. Due to the continuation of reclamation at this site, <br />SCC has formally requested a bond release from the DRMS. SCC has a bond liability of <br />$1,646,038 and has asked that up to $10,073 of that amount be released. In accordance with the <br />Division's Rule 3.03.2(1), SCC is required to send written notice of its bond release request to <br />adjacent land owners, surface owners and various local governing bodies. <br />The area for which the bond release is being requested is the Roadside Mines' Overland <br />Conveyor, south of 19/10 Road and containing approximately 2 acres. It is located approximately <br />three miles northeast of Palisade, CO at the Interstate 70, Cameo Exit No. 46. The reclamation <br />work has been done in T10S, R98W, Section 34. All buildings and structures associated with this <br />site have been removed. The disturbed areas have been backfilled and regraded to approved <br />contours, then reseeded. All work has been performed in accordance with plans approved by <br />the DRMS. <br />Sincerely, <br />/E. over, P.E. <br />Consulting Engineer