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NOV 3 0 2010 <br />SJ.ENr a r <br />QPP <br />O? Za1 <br />m1, <br />?y 9"( <br />11\ .a{ <br /> <br />1320 (CO-130) <br />United States Department of the Interior <br />BUREAU OF LAND MANAGEMENT <br />Grand Junction Field Office <br />2815 H Rd <br />Grand Junction, Colorado 81506 <br />www.co.bim.gov/gjra/gjra.html <br />Michael P. Boulay <br />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 />Re: McClane Canyon Mine (Permit No. C-1980-004) <br />Permit Revision Application No. 2 (PR-2) <br />Expansion of Surface Facilities and Mining Plan <br />Dear Mr. Boulay: <br />CJitV60 <br />OEC U2 2010 <br />Divioit, I ui <br />Aviv and #a*, <br />TAKE PRIDE' <br />INAMERICA <br />Thank you for your letter informing our office about McClane Canyon Mining, LLC's Permit <br />Revision Application No. 2 (PR-2). Your letter stated that on November 10, 2010 your office <br />considered the application to revise coal mining operations at the McClane Canyon Mine <br />complete for the purposes of filing. Rhino Energy LLC submitted a proposal to expand coal <br />mining operations at the McClane Canyon Mine to our office on June 29, 2010 on four <br />`--previouslyissued F-ederal-Coal?Leases,-CDC-66514, C--OM439, C-0125515; and C-0125516. <br />We have not given an approval for the proposed mine expansion and are currently working on an <br />Environmental Assessment (EA) analyzing the environmental impacts that would result from the <br />project. We signed a Memorandum of Understanding with Rhino Energy, LLC and Edge <br />Environmental, Inc. on July 1, 2010 to prepare the EA for the proposed project. We did not <br />receive a complete proposed action from Rhino Energy, LLC until November 22, 2010 and had <br />not been able move forward with the EA process.