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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 />June 12, 2009 <br />Mr. Jerry Nettleton <br />BTU Empire Corporation <br />29515 Routt County Road #27 <br />Oak Creek, CO 80467 <br />Re: Eagle No. 5 and 9 Mines (Permit No. C-1981-044) <br />Bond Release Application No. 2 (SL-2) <br />Dear Mr. Nettleton: <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 />The Division has reviewed Bond Release No. 2 for the Eagle Mine Complex and has a remaining concern <br />that needs clarification or documentation from BTU-Empire Corp. Earlier this spring we spoke about the <br />seals in the Eagle Mine Complex in the areas requested for bond release. The water inflow map (Exhibit <br />30-1985 Mine Inflow Report, Map IV-11, and Exhibit 32) illustrates areas of inflow and sealed areas within <br />the mine. <br />1. The Division was unable to locate documentation of the seals in the area of the mine requested for <br />bond release. The Division is trying to determine hydrologic communication within the mine <br />workings, and has been unable to determine if these seals are hydrologic seals or if hydrologic <br />communication in the older workings may still occur. Please provide this information about the <br />underground seals. <br />The Division would like to resolve this remaining item soon in order to make a proposed decision. Please <br />provide this information as soon as possible so the Division may continue its review. If you have any <br />questions, please contact me. <br />Sincerely, <br />I Protection Specialist <br />7 ext. 8107 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines