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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 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />December 20, 2010 <br />Jim Kiger <br />Oxbow Mining, LLC <br />P.O. Box 535 <br />3737 Highway 133 <br />Somerset, CO 81434 <br />Re: Elk Creek Mine (Permit No. C-1981-022) <br />Decision - Minor Revision No. 93 (MR-93) <br />Drilling Additional Angle Boreholes at Existing GVB Sites <br />Dear Mr. Kiger: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Enclosed you will find the Division of Reclamation, Mining and Safety's Decision Form for Minor <br />Revision No. 93 at the Elk Creek Mine. <br />With this minor revision application, Oxbow Mining, LLC proposes to drill seven new angle boreholes to <br />enhance methane drainage. Two of these boreholes (LW-16-07B and LW-16-07C) are proposed to be <br />located at the existing GVB-16-07 gob vent site, which is located on US Forest Service property. GVB- <br />16-07 was approved with Technical Revision No. 64 in which the US Forest Service reviewed and as a <br />result of their review set forth a list of conditions necessary to protect federal resources. These conditions <br />were incorporated into the permit application package (PAP) in Exhibit 2.03-E1 (TR-64, USFS - <br />Conditions for Protection of Federal Resources - March 19, 2010). The US Forest Service also reviewed <br />MR-93 and reiterated the list of conditions that are applicable to site GVB-16-07, which are identical to <br />those previously incorporated into the PAP with TR-64. Please refer to Exhibit 2.03-E1 and ensure that <br />these conditions are fully complied with. <br />Documentation must be submitted to the Division demonstrating that a copy of the approved revision <br />application was sent to the Office of Surface Mining and the Bureau of Land Management. The material <br />should be sent within 15 days of final approval. <br />Please refer to the Performance Bond heading on the enclosed decision form. If the amount of Bond Held <br />equals or exceeds the Revised Liability, you need not submit additional bond. However, if the Revised <br />Liability exceeds the Bond Held, please submit additional bond or rider to your existing bond that equals <br />or exceeds the Revised Liability. This Minor Revision must not be implemented until any required <br />increase in bond is submitted to and approved by the Division. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines