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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 />April 14, 2011 <br />U.S. Bank National Association <br />C/O Real Estate Department <br />918 17th Street, 5th Floor <br />Denver, CO 80202 <br />Re: Hamilton Mine (Permit No. C-1991-078) <br />Bond Release Application No. 2(SL-2) <br />Bond No. <br />Dear Sir or Madam: <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 />This letter, as required by Rule 3.03.2(5)(a) of the Rules and Regulations, is to inform you that the <br />Division of Reclamation, Mining and Safety has issued a proposed decision to Approve Bond Release <br />Application No. 2 for the Hamilton Mine. This decision will be published in the San Miguel Basin <br />Forum as soon as possible. Publication of the notice initiates a thirty (30) day public comment period. <br />If, within thirty days, there are no requests for an adjudicatory hearing, the decision will become final. <br />The bond for the operation is a Letter Of Credit issued by your company (Bond No. , in the <br />amount of $447,281.00. The proposed release amount is $381,366.00. <br />Please be aware that this notification is not a request to initiate any action by U.S. Bank National <br />Association concerning Bond No. and is for your information only. Should Honeywood <br />Coal Company chose to take action with regard to this bond release, they will contact you. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />Marcia L. Talvitie, P.E. <br />Environmental Protection Specialist <br />cc: Johanna R. Cramer, CDRMS <br />Jim Stover, P.E., J.E. Stover & Associates, Inc. <br />C-SL.17_C 1991078_MLT_04142011104808.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines