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J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7" STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />August 4, 2009 <br />PARTIAL BOND RELEASE LETTER <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Bear Coal Company, Inc., initiated reclamation of its Bear No. 3 Mine in the first quarter of 1997 and <br />completed backfilling and grading during 1998. <br />One provision of the Division of Reclamation Mining and Safety' Rules is that the mine must be <br />bonded for the estimated reclamation cost. Now that a portion of the reclamation work has been <br />performed, Bear Coal Company, Inc., has formerly requested a partial bond release from the <br />Division of Reclamation Mining and Safety. Bear Coal Company, Inc., has a bond of $279,224 and <br />has requested that up to $ 167,000 of that amount be released. In accordance with the Division's <br />Rule 3.03.2(1), Bear Coal Company, Inc., is required to send written notice of its partial bond release <br />request to adjacent land owners, surface owners and various local governing bodies. <br />The area for which partial bond release is being requested is at the Bear No. 3 Mine, located in <br />Gunnison County, southeast of Somerset, CO. The Bear No. 3 Mine operated from 1982 until <br />November 9, 1996 when mining ceased. The mine portals were sealed on January 9, 1997. All of <br />the surface facilities have been dismantled and removed from the site. The portals were backfilled <br />and the portal area was restored to approximate original contour during June and July 1997. The <br />lower main site was restored to approximate original contour, plated with topsoil and seeded during <br />1998. There is one sediment pond and one passive water treatment pond on site. All work has been <br />performed in accordance with plans approved by the Division of Reclamation Mining and Safety. <br />Sincerely, <br />J. EConsulting Engineer