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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 />March 22, 2011 <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. 95 (MR-95) <br />Sixteen Angle Boreholes at Panels LW-17 and LW-18 <br />Dear Mr. Kiger: <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <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. 95 at the Elk Creek Mine. <br />With this minor revision application, Oxbow mining, LLC proposes to drill an additional sixteen (16) <br />angle boreholes at each of eight (8) approved vertical gob vent borehole sites to further enhance methane <br />drainage. The angle boreholes are referred to as the "B" and "C" boreholes at the presently approved <br />vertical borehole sites. Eight of the new angle drilled boreholes including (17-06B and 17-06C, 17-08B <br />and 17-08C, 18-06B and 18-06C, and the 18-09B and 18-09C angle boreholes are on U.S. Forest Service <br />(USFS) property. No new road construction or additional surface disturbance will occur and all of these <br />borehole locations and roads were previously analyzed by the USFS with Technical Revision's 64 and 65 <br />(TR-64 and TR-65). As a result of their review the USFS set forth a list of conditions necessary to protect <br />federal resources. These conditions were incorporated into Exhibit 2.03-1 of the permit application <br />package (PAP). The USFS also reviewed MR-93 (approved by the Division on December 20, 2010) and <br />MR-95 and reiterated the list of conditions that are applicable to the angle boreholes proposed for Panels <br />LW-17 and LW-18. With MR-93 and MR-95 the USFS added one condition; please see Item 30 on page <br />14 of the USFS MR-95 review memorandum and ensure that all conditions are fully complied with. For <br />future reference please incorporate the MR-95 review memorandum from the USFS in its entirety into <br />Exhibit 2.03-1 of the PAP. <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 />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines