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r <br />401,00 <br />I000 <br />OXBOW MINING, LLC <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929-5122 Fax <br />(970)929-5177 <br />September 14, 2010 <br />Mr. Dent A. Gorham RFCF-IViD <br />Environmental Protection Specialist III VP 2 2 7-010 <br />Division of Reclamation, Mining and Safety Divfston or Neuiuma4on, <br />1313 Sherman St., Room 215 i',Riring and Safety <br />Denver, Colorado 80203 <br />Re: 2006 Exploration Project (X-2006-223-07) <br />Dear Mr. Gorham: <br />The following information is in response to the Division's letter of September 8, 2010 regarding <br />the subject exploration project. With respect to the specific terms of the NOI, no exploration <br />activities have occurred since the last report submitted to the Division in January, 2010. The <br />NOI effectively remains inactive. <br />A number of factors influence why a "Final Reclamation Report" for this NOI has not been <br />submitted. <br />1. We noted in January, 2010 that the site and road associated with ECM-05-23 remains <br />open as it serves as a GVB methane drainage borehole road associated with the Elk Creek Mine, <br />C-1981-022. It is likely that final reclamation of this particular site will be delayed, and thus <br />delay of overall NOI reclamation, until we complete final reclamation activities for the Mine <br />related activities. <br />2. As noted in the January, 2010 report, final drilling of the ECM-06-30 and ECM-05-24 <br />sites are delayed until the Colorado Roadless Area and USFS Inventory Roadless Area issues are <br />resolved by these respective Governments. When the roadless issues are resolved, Oxbow <br />intends to file for another BLM Exploration License and resume drilling. <br />As you can see, final reclamation reporting and final bond release of the NOI in its entirety will <br />remain delayed so long as there are other activities occurring on the ground. <br />We suggest an alternative to the dilemma of the delay in final reclamation and bond release of a <br />number of the NOI sites and roads. First, we suggest that the NOI could be amended to <br />document the transfer of the status of those delayed sites and road reclamation over to the mine <br />permit or other NOI's. Second, simultaneously allow for the remaining sites and roads to be <br />0 Page 1