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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 />May 10, 2010 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 West First Street <br />Trinidad, CO 81082 <br />RE: Quarterly Report Review, 3rd and 4th Quarters 2009 <br />New Elk Mine, #C-81-012 <br />Dear Mr. Thompson: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division of Reclamation, Mining, and Safety has completed review of the 2009 3rd <br />and 4th quarter reports submitted for sediment ponds, refuse piles, and pond discharges <br />for the New Elk Mine. Please find the results of this review under the respective <br />headings below, paying special attention to questions or comments in bold text, and <br />correct all future reports or reporting as necessary. <br />Sediment Ponds <br />The 3rd quarter reports meet the requirements of Rule 4.05.9(l 7) for each pond or <br />containment. The 4th quarter reports comply with Rule 4.05.9(15) and are certified by <br />a registered professional engineer. Previous commitments for sediment level surveys <br />were made in 2009 for containment area #1 and for Pond 8. Please ensure that <br />accurate sediment surveys are completed for these two structures in 2010. No <br />other issues or concerns were documented which is consistent with field inspection. <br />Refuse Piles <br />The two reports (RDA and DWP) meet the requirements of Rules 4.09.1 (11) and <br />4.10.2(2) for each quarter. Water level measurements in the three piezometers at the <br />RDA were noted as required. The Division notes the added language to the RDA report <br />that Highway 12 and the Purgatoire River are potentially threatened by the RDA should <br />failure occur. <br />Discharge Monitoring Reports <br />Discharge occurred through Pond 001 (underground mine water discharge) in both the <br />3rd and 4th quarters. The operator requested a waiver of the sodium limitation in the first <br />month of the 3rd quarter. Conductivity as reported is consistent with values measured <br />Office of <br />Denver • Grand Junction • Durango Office <br />Mined Land Reclamation Active and Inactive Mines