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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 />26 May 2010 <br />Ross L. Gubka, P.E. <br />Western Fuels - Colorado <br />P.O. Box 628 <br />Nucla, CO 81424 <br />Re: New Horizon Mine — Permit No. C- 1981 -008 <br />SL -12 — Partial Phase II and Phase III Performance Bond Release <br />Preliminary Adequacy Review <br />Dear Mr. Gubka: <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Rittef, Jr. <br />Govemof <br />James 8, Martin <br />Executive Director <br />The Division of Reclamation, Mining and Safety ( "Division ") has completed its review of the <br />SL -12 bond release request for the New Horizon Mine. Our comments are presented below, for <br />your consideration and response. <br />Requirements governing the release of performance bonds for coal mines in Colorado are <br />described in the following documents: <br />• C.R.S. 34 -33 -125 ( "the Act "). Release of performance bonds or deposits. (July 1, 1995) <br />• Regulations of the Colorado Mined Land Reclamation Board for Coal Mining ( "the <br />Rules ") — Section 3.03 Release of Performance Bonds (September 14, 2005) <br />• Colorado DMG Guideline ( "the Guideline ") Regarding Selected Coal Mine Bond <br />Release Issues (April 18, 1995) <br />Portions of the Western Fuels — Colorado (WFC) SL -12 request for bond release were submitted <br />on August 18 and September 3, 2009. In accordance with requirements of Section 3.03.2(1)(b), <br />WFC published an advertisement in the San Miguel Basin Forum once a week for four <br />consecutive weeks — September 10, 17, 24 and October 1, 2009. Proof of publication was <br />submitted to the Division on October 13, 2009. <br />On the 21 of October, WFC provided notarized statements certifying that all applicable <br />reclamation activities have been accomplished in accordance with the requirements of the Act, <br />the rules and the approved reclamation program (as required by Section 3.03.2(1)(e), and the <br />Division determined the application to be complete for purposes of filing on October 22, 2009. <br />General Comments <br />1. Part 1 of the Guideline provides a list of 18 General Requirements for inclusion in the <br />Bond Release Application. These items are addressed on beginning on Page 1 of, the <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />