2010-12-07_APPLICATION CORRESPONDENCE - C2010088

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Corey Heaps CAM-Colorado, LLC December 7, 2010 Page 2 Since Tavistock Partners, LLC has challenged our position that a reclamation permit would be necessary for such an operation, the Division has reviewed this matter more closely and has had several discussions between our Coal and Minerals sections Senior Staff. It is the Division's position that a "permit" to conduct surface coal mining and reclamation operations will be required to excavate and haul the fill material from the adjacent Tavistock property to the CAM property for construction use at the Fruita Loadout. We believe that adjacent activity is actually appropriately part of the coal load out activity, thus requiring inclusion within the pending coal application. It is our understanding that the activity is adjacent to and solely intended to provide fill for the coal load out (thus other property resulting from or incident to). Please refer to Rule 1.04 (132) (b), the definition for surface coal mining operations: "The areas upon which such activities occur or where such activities disturb the natural land surface. Such areas shall also include any adjacent land the use of which is incidental to any such activities...". There are several implications to the pending coal permit application with the inclusion of the material borrow area. The proposed permit boundary for the coal application will need to be revised; baseline data, an operations plan and a reclamation plan for the additional area will be required; and additional bond will be required to cover the disturbance. Please feel free to contact me should you have any questions or if you require additional information. Sincerely, Sandra Brown Senior Environmental Protection Specialist C: Jim Stover/J.E. Stover & Associates David Berry, Director, Office of Mined Land Reclamation Mike Boulay, DRMS Steve Shuey, DRMS