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RECEIVED <br />,IAN 312011 <br />Kern Valley Railroad "Min; <br />P.O. Box 26421 <br />1505 South Redwood Road <br />Salt Lake City, UT 84105 <br />(T) 801- 974 -5484 (F) 801 -478 -2868 <br />November 17, 2010 <br />Mr. Ron Thompson <br />Mine Manager <br />New Elk Coal Company, LLC <br />122 W. First Street <br />Trinidad, Colorado 81082 <br />RE: JANSEN LOADOUT FACILITY — TRINIDAD COLORDAO <br />Dear Mr. Thompson: <br />We understand that New Elk Coal Company (NECC) recently received comments <br />from the Division of Reclamation, Mining, and Safety (DRMS) about NECC's permit <br />revision application for the planned coal loadout facility at Jansen. The DRMS is <br />requesting Kern Valley Railroad Company (the lessor) acknowledge that <br />features /structures would remain on site at completion of NECC coal loadout <br />operations. The features /structures to remain would include the following: <br />- New standard gauge railroad tracks (approximately 4,550 feet in length); <br />- Five foot retaining wall which is one foot in width and a length of <br />approximately 475'; <br />- Existing Jansen railroad building would remain as a permanent structure; and <br />- Perimeter berms created on the south side of the property would remain <br />after operations. <br />If you have any questions regarding this approval to retain structures, please call to <br />discuss. <br />Sincerely, <br />Michael J. Van Wagenen <br />Vice President <br />