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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 />July 1, 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 I, 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 $661,061 of that amount be released. In accordance with <br />the 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 Mine Unit Train Loadout <br />Facility, approximately 75.2 acres, located approximately three miles northeast of Palisade, CO at <br />the Interstate 70, Cameo Exit No. 46. The reclamation work has been done in T10S, R98W, <br />Sections 26, 27 and 34. The postmining land use for the Roadside Mine Unit Train Loadout was <br />approved as industrial/commercial and has been implemented with the installation of the sand <br />plant, initiating construction of the bridge and new access road and the configuration of the <br />reclaim tunnel as a storage facility. Portions of the Unit Train Loadout site have been backfilled <br />and regraded and several buildings and structures have been removed from the site. All work <br />has been performed in accordance with plans approved by the DRMS. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer