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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 />COLORADO <br />Denver, Colorado 80203 I o N <br />D <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br /> Bill Ritter, Jr. <br /> Governor <br />Date: November 22, 2010 <br /> Mike King <br /> Executive Director <br />To: Mike Boulay <br /> Loretta E. Pineda <br /> <br />From: Johanna Cram r Director <br />Re: Fruita Loadout, Permit No. C-2010-088 <br />Ownership and Control Review/AVS <br />I have reviewed the information submitted in the permit application that the Division received and have the <br />following comments: <br />Rhino Energy LLC <br />1) Per the Organization Charts, pages 2.03-14 & -15, Rhino Energy WV LLC owns 51% of Rhino Eastern <br />LLC. AVS shows that Rhino Energy, LLC owns 51% of Rhino Eastern, LLC. Please have AVS updated or <br />correct the Organization Charts. <br />2) In AVS, Castle Valley Mining LLC is owned by Rhino Energy LLC 100% but is not listed on the <br />Organization Charts in the permit. <br />3) In AVS, Sands Hill Coal Co Inc is owned by Rhino Energy LLC but is not listed on the Organization Charts <br />in the permit. <br />Wexford Capital LLC <br />1) On the Organizational Chart, permit page 2.03-15, it shows Wexford Capital LP. Should this be <br />Wexford Capital LLC? If so please correct permit page 2.03-15. Otherwise Wexford Capital LLC is not <br />listed on the Organizational Chart, page 2.03-15. <br />2) In AVS, it shows that Wexford Capital LLC has four Managing Members: Artis Investors LLC (Class A), <br />Artis Investors LLC (Class B), Callidus Investors LLC and Taurus Investors LLC. Is this still correct? <br />3) Henry Scholder, Vice President, dated 1/3/2005 is listed in AVS but he is not listed on permit page <br />2.03-19. Please either have AVS updated to show Henry Scholder is no longer an officer or update <br />permit page 2.03-19 to show he is an officer. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines