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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 />September 8, 2010 <br />Wendell Kuntz <br />Mountain Coal Company, LLC <br />West Elk Mine <br />PO Box 591 <br />Somerset Colorado 81434 <br />Re: Dry Fork and Lion Mesa Exploration Project (X-2005-212-06) <br />Dear Mr. Kuntz: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Notice of Intent X-2005-212-06 expired on August 27, 2007. Division records described an <br />original project conducted under the name "Lion Mesa" consisting of 6 holes and 1.23 miles of <br />road construction. Subsequent reporting indicates only three holes were drilled and two were <br />converted to water monitoring wells. <br />If the water wells are not currently permitted as part of the West Elk mine permit application, the <br />Division suggests submitting a minor revision to the West Elk mining permit application that <br />includes the following information related to the monitoring wells. <br />• Completion diagrams <br />• Permit text narrative discussing these wells <br />• Reclamation bond calculations for abandonment <br />• A map showing the location (preferably on the existing hydrology map, showing sites <br />inactive) <br />If the water wells are currently permitted and bonded under the West Elk permit, please submit a <br />request for bond release for this NOI. <br />If you have any questions, please call me. <br />Since ly, <br />K n A. Gorham <br />Environmental Protection Specialist III <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines