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J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />March 3, 2008 RECEIVED <br />MAR OS 2008 <br />Mr. Mike Boulay Division of 1 -Lion, <br />Division of Reclamation, Mining and Safety Mining and Safety <br />101 South 3"d, Suite 301 <br />Grand Junction, CO 81501 <br />Re: Snowcap Coal Company, Inc. <br />Permit Revision (PR-4), Adequacy Response Submittal <br />Unit Train Loadout, Railroad Spur & Overland Conveyor <br />Permit No. C-1981-041 <br />Dear Mr. Boulay: <br />The DRMS' letter dated September 25, 2007 transmitted its adequacy comments <br />regarding the referenced permit revision. Following are Snowcap's responses to the <br />DRMS' comments and concerns: <br />PR-4 PRELIMINARY ADEQUACY REVIEW COMMENTS <br />2.05.3(4) and 4.05.9(13) Permanent Impoundments <br />1. DRMS: Under the proposed plan, Sediment Pond 1 & 2 would be retained as a <br />permanent impoundment for the alternative postmining land use. Please include a <br />narrative demonstration for inclusion within an appropriate permit narrative <br />section or appendix, separately addressing each of the requirements in sub- <br />sections (a) through (f) of Rule 4.05.9(13). Please include documentation to <br />demonstrate compliance with applicable requirements of the Office of the State <br />Engineer with respect to water rights and embankment criteria. <br />SCC: The plans for pond retention have changed. As can be seen on Exhibit 10C, the <br />ponds will be backfilled. The spillways will be capped or plugged. <br />2.05.4(2)(b) Reclamation Plan Detailed Cost Estimate <br />2. DRMS: Rule-3.03.1(3)(e) requires that, for permits which include an alternative <br />postmining land use plan for industrial or commercial... "the Division shall require the <br />maintenance of bond coverage throughout the applicable liability period, sufficient for the <br />Division to achieve compliance with the standards for revegetation applicable to the pre- <br />mining land use under 4.15, in the event the alternative postmining land use is not <br />developed in the event of bond forfeiture". In other words, the Division retains the bond <br />calculated to be necessary for implementation of the original reclamation plan, so that <br />the original plan could be completed, if the alternative postmining land use is not <br />implemented. Upon approval of bond release for the Alternative Land Use portion of the