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J. E. STOVER & ASSOCIATES, INC. <br />2352 N. 7th ST., UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />May 13, 2010 <br />RE: Snowcap Coal Company, Inc. <br />P. O. Box 1430 <br />Palisade CO 81526 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Snowcap Coal Company, Inc. (SCC) is responsible for the reclamation of the Roadside North and <br />South Portals under Division of Reclamation, Mining and Safety (DRMS), Permit No. C-81-041. <br />The mine ceased its underground workings in December 1999 and reclamation continues to <br />progress at this site. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be <br />bonded for the estimated reclamation cost. SCC has formally requested a Phase II and III bond <br />release on a portion of the disturbed surface area from the DRMS. SCC has a bond liability of <br />$1,640,413 and has asked that up to $67,420 of that amount be released. In accordance with the <br />Division's Rule 3.03.2(1), SCC is required to send written notice of its bond release request to <br />adjacent land owners, surface owners and various local governing bodies. <br />The area for which the bond release is being requested is the Roadside Mines' South Portal, <br />approximately 14.8 acres, located approximately three miles northeast of Palisade, CO at the <br />Interstate 70, Cameo Exit No. 46. The reclamation work has been done in T10S, R98W, Section <br />34. The Roadside South portal and the upper and lower areas of the Roadside South Mine site <br />have been backfilled, regraded and reseeded. Several buildings and structures have been <br />removed from the site. All work has been performed in accordance with plans approved by the <br />DRMS. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer