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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 />August 25, 2010 <br />Ross 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 />Permit Revision No. 6 (PR -06) Adequacy Review No. 5 <br />Dear Mr. Gubka: <br />COLORADO <br />D TV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />A7i3Ff 4 <br />,t i <br />Executive Director <br />Loretta E. PiMeda <br />Director <br />The Division has reviewed the Western Fuels - Colorado (WFC) August 11, 2010 response to the <br />Division's fourth adequacy review letter dated July 23, 2010 (AR #4) regarding Permit Revision No. 6 <br />(PR -06). The Division's comments below are our suggestions to achieve compliance with the <br />Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. <br />It is our understanding that beneficial discussions may have occurred between Ms. Turner, the Morgan's <br />and WFC. We continue to support and encourage any such discussions. The Division has considered <br />reasonable compliance and permitting alternatives that have developed from these discussions. <br />With the Division's letter dated August 16, 2010, the PR -06 decision deadline has been extended to <br />August 31, 2010. As described in WFC's August 13, 2010 letter, WFC has agreed to limit activities to <br />stripping Bench 1 overburden in the areas from which topsoil has previously been removed; rough <br />grading and stockpiling Bench 1 overburden on the spoil side; drilling and blasting Bench 2 overburden <br />and interburden; and to mining coal. WFC will not strip or spread A or B or mixed topsoil prior to the <br />Division's decision to approve PR -06, and all of the Morgan Bench 1 overburden will be placed back on <br />the Morgan property. <br />Rule 2.03.4 - Identification of Interests <br />Certain corrections have been made to subsection 2.03.4(3), but start dates given in the two <br />sections are contradictory. Rule 2.03.4(3)(a) requires only the name and address of each person <br />who owns or controls the applicant. In order to eliminate potential confusion, please delete the <br />title and start/term dates for the five people listed in 2.03.4(3)(x); this information is already <br />provided in (b) and (c). <br />1A. Previously resolved. <br />Rule 2.03.6 — Right of Entry and Operation Information <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />