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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 />May 11, 2011 <br />Roy Karo <br />Seneca Coal Company, LLC <br />P.O. Box 670 <br />Hayden, CO 81639 <br />Re: Seneca II-W Mine (Permit No. C-1982-057) <br />Bond Release Application No. 3 (SL-3) <br />Dear Mr. Karo: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Mike King <br />Executive Director <br />John W. Hickenlooper <br />Governor <br />Loretta E. Pineda <br />Director <br />In accordance with Rule 3.03.2(5)(b) of the Rules and Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining (Rules), you are hereby notified that the Division's decision to <br />Partially approve Bond Release Application No. 3 for the Seneca II-W Mine became final on May 3, <br />2011. No requests for an adjudicatory hearing on our proposed decision were received. <br />Bond Release No. 3 reduces your reclamation liability by $2,335,430.00. The current liability is now <br />$6,743,430.00. If you choose to reduce or replace your existing bond, it must equal or exceed <br />$6,743,430.00. The Division suggests you provide a copy of this letter, the OSM concurrence letter <br />dated April 18, 2011, and the BLM concurrence memorandum dated April 15, 2011, to your bonding <br />company for written evidence for approval to reduce your bond. Please find these documents attached. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />Susan L. Burgmaier <br />Environmental Protection Specialist <br />cc: Johanna R. Cramer, CDMG <br />Enclosure <br />C-SLr18 C1982057 SLB 05112011085554.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines