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<br />United States Department of the Interior <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />P.O. Box 46667 <br />Denver. Colorado 80201-6667 <br />IN REPLY REFER TO: <br />February 20, 2007 <br />Mr. Thomas A. Bird <br />Manager, Coal Services <br />National King Coal, LLC <br />4424 County Road 120 <br />Hesperus, Colorado 81326 <br />Dear Mr. Bird: <br />Y*'iC <br />CO-0106 <br />RE: OSM Project No. - CO-0106-A-P-01: "King II" Significant Permit Revision, Federal <br />Indian lands permit CO-0106A <br />Dear Mr. Bird: <br />This is to notify you that the United States Department of the Interior, Office of Surface Mining <br />Reclamation and Enforcement (OSM), in accordance with the Federal regulations under 30 CFR <br />773.15 and the Federal Program for Indian Lands, has approved, with a condition, National King <br />Coal, LLC's July 28, 2006, application for a permit. The permit application requests the issuance <br />of a new Federal Indian lands permit to recover, by underground mining methods, Federal coal <br />from 1,224 acres of Federal lease COC-62920 underlying surface lands owned, in fee by the Ute <br />Mountain Ute Tribe. <br />The proposed King II Indian lands underground coal mine will be an extension to the existing <br />King II mine covered by Colorado State permit C-81-035. The mine is located in La Plata County, <br />Colorado, approximately 4.5 miles-southwest of the town of Hesperus, Colorado, under surface <br />lands owned by the Ute Mountain Ute Tribe on the following lands; <br />Township 35 North, Range 11 West N.M.P.M <br />Section 19, lots 4, 5, E'V2SW'/, SE%; <br />Township 35 North, Range 12 West <br />Section 24, lots 1, 2, SW/SE'/; <br />Section 25, lots 1, 2, W'/2NE'/, W'/z; <br />Section 26, SE'/NE'/, E'/2SE'/, SW'/SE/4; <br />Section 35, NE'/. <br />TAKE PRIDE' -, <br />INAMER1CA?f(