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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman SL, Room 213 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 8324106 <br />August 20, 2410 <br />Mr. R. Lance Wade <br />Mine Manager <br />Western Fuels - Colorado <br />P.Q. Box 628 <br />Nucla, CO 81424 <br />COLORADO <br />D IV] S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />BIU Ritter, ,W. <br />Gwornor <br />MW* King <br />Executive Dirmcw <br />Loretta E. PU%de <br />Director <br />Re: Western Fuels — Colorado Letter dated August 13, 2010 (Landowner Coordination Issues) — Permit revision <br />No. 6 —New Horizon Mine — Permit No. 1981 -008 <br />Mr. Wade: <br />The DRMS has reviewed the Western Fuels - Colorado (WFC) letter dated August 13, 2010 (received August 16, <br />2010) regarding landowner coordination issues. The WFC letter asserts that the previous DRMS direction <br />regarding landowner coordination (DRMS letter dated May 18, 2010) is without basis. We disagree. The DRMS <br />direction is consistent with the statutory and regulatory citations indicated in the May 18, 2010 letter. The <br />direction was issued to guide compliance and to secure resolution of the pending reclamation- related issues. <br />However, we agree that alternative and legally correct interpretations of the landowner coordination <br />requirement exist, and that the situation may be at a point where such options may merit consideration. <br />The DRMS is currently reviewing the latest Permit Revision No. 6 responses from WFC and we will provide a <br />response soon. We hope that communication with the Morgan Property landowner representatives regarding <br />the current proposals will yet produce some form of agreement between the landowners and WFC. <br />Thank you for your cooperation and ongoing efforts to address the pending compliance issues. <br />Sincerely, <br />David Berry <br />Director, Office of Mined Land Reclamation <br />Division of Reclamation, Mining and Safety <br />CZ: J&61 !vi AOTI) Z5 'Aug - zo,® <br />Office of Office of <br />Mined Land Reclamation Denver • Grand junction • Durango Active and Inactive Mines <br />