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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 COLORADO <br /> <br />Phone: (303) 866-3567 DIVISION OF <br />RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />September 15, 2010 <br /> Bill Ritter, Jr. <br /> Governor <br />Gerald Jacob, Ph. D. <br /> Mike King <br />Environmental Advisor Executive Director <br />Pioneer Natural Resources USA, Inc. Loretta E. Pineda <br />1401 17th Street Suite 1200 Director <br />Denver CO 80202 <br />Re: Response to comments on NOI X-2010-232-00 <br />Dear Mr. Jacob: <br />We have reviewed your letter of August 30, 2010 pertaining to New Elk Coal Company (NECC) <br />Coal Exploration Notice of Intent (NOI) X-2010-232-00. This NOI was approved by the Division <br />of Reclamation, Mining and Safety (DRMS; the Division) on August 27, 2010. We appreciate <br />your letter, and have forwarded a copy to NECC Mine Manager Ron Thompson. Our response to <br />the comments in your letter follows, with your original concerns paraphrased for reference. <br />Testing of nearby water wells before and after exploration operations. <br />While coal exploration holes proposed under this NOI may be similar in depth to nearby <br />existing or proposed coal bed methane production wells, DRMS does not believe sufficient <br />cause exists to warrant testing of water wells before and after coring operations approved <br />under this NOI. The activities approved under this NOI are expected to be limited in time <br />and scope, with minimal disruption to the overburden and the coal seams drilled and cored. <br />Should NECC choose to nevertheless follow your suggestions, this will be up to them. <br />2. Coal exploration drilling releasing large amounts of methane at the surface. <br />Our Rules regulating coal exploration and reclamation activities do not require persons <br />proposing such activities to describe in their NOI applications how venting of any potential <br />methane that may be encountered will occur. Coal exploration activities approved under <br />this NOI are nevertheless not expected to release large amounts of methane at the surface, <br />as recent NECC experience with a core-hole drilled within 200 feet of an active coal-bed <br />methane well did not result in large amounts of methane at the core-hole site itself. Should <br />NECC choose to nevertheless follow your suggestions, this will be up to them. <br />3. Providing notice to individual landowners. <br />Our Rules regulating coal exploration and reclamation activities do not require persons <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines