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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 />March 15, 2010 <br />Scott Cowman <br />Twentymile Coal Company <br />29515 Routt County Road 27 <br />Oak Creek, CO 80467 <br />RE: Sage Creek Holdings, LLC <br />Notice of Intent to Explore (NOI) <br />File No. X-2010-231-01 <br />Dear Mr. Cowman, <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />The Division has reviewed the above-referenced NOI in accordance with the applicable provisions of <br />the Colorado Surface Coal Mining Act ("Act") and the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining ("Regulations), and has the following comments. <br />Notification of Completeness [Regulation 2.02.21 <br />Notice of Intent NO. X-2009-231-00, AM-1 is Complete <br />Determination of Proposed Activities as Coal Exploration [Regulations 2.02.2(3) and 1.04(22)] <br />The activities described in the Notice of Intent qualify as "coal exploration" as defined at Regulation <br />1.04(22). The coal exploration activities described will involve removal of 250 tons or less of coal. <br />Determination of Substantial Natural Land Surface Disturbance [Regulations 2.02.2(3) and <br />1.04(127)] <br />The coal exploration activities described will substantially disturb the natural land surface, as defined <br />at Regulation 1.04(27). <br />Determination of Amount of Performance Bond [Regulation 3.05.2(1)] <br />The Division has prepared a preliminary estimate of the amount of performance bond sufficient to <br />assure the satisfactory reclamation of the proposed coal exploration disturbance if, in the event of bond <br />forfeiture, the work had to be performed by the Division.through independent contractors. The amount <br />of performance bond calculated was $78,217.00. <br />The Division has the following adequacy comments in regard to the NOI X-2010-231-01 application: <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines