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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 C O L O RA D O <br /> <br />Phone: (303) 866-3567 D I V I S ION OF <br /> RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br /> Bill Ritter, Jr. <br /> <br />May 21, 2010 Governor <br /> James B. Martin <br /> Executive Director <br />Ron Thompson <br /> Loretta E. Pineda <br />New Elk Coal Company, LLC Director <br />122 West First Street <br />Trinidad, CO 81082 <br />Re: New Elk Coal Company, LLC <br />Notice of Intent to Explore <br />File No. X-2010-232-00 <br />Dear Mr. Thompson: <br />The Division of Reclamation, Mining, and Safety (DBMS) has reviewed the above <br />referenced Notice of Intent to Explore (NOI). This letter constitutes written notification as <br />required by Rule 2.02.2(3). <br />Notification of Completeness (Rule 2.02.2) <br />NOI X-2010-232-00 is complete. <br />Determination of the Proposed Activities as Coal Exploration (Rule 2.02.3(3)) <br />The activities described in the NOI qualify as "coal exploration" as defined by Rule <br />1.04(22). The coal exploration activities described will involve the removal of 250 tons or <br />less of coal. <br />Determination of Substantial Disturbance of the Land Surface (Rule 2.02.2(3)) <br />The coal exploration activities described will substantially disturbed the natural land <br />surface as defined by Rule 1.04(27). <br />Determination of the amount of performance bond (Rule 3.05.2(1)) <br />The Division reviewed the reclamation cost estimate as provided and finds the direct costs <br />calculated are adequate. However, the estimate must also include costs as if performed <br />by an independent contractor hired by the Division. Therefore, additional indirect costs <br />are required to be included in the estimate, generally calculated based on the estimated <br />direct costs. The table below provides an estimate of those indirect costs. <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines