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NEW ELK COAL COMPANY LLC <br />122 WEST FIRST STREET <br />TRINIDAD, CO 81082 <br />(719) 845-0090 <br />New Elk Mine <br />Lorencito Canyon Mine ?O <br />May 21, 2011 <br />Mr. Kent Gorham <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Lorencito Canyon Mine Permit No. C-96-084 <br />Quarterly Pond Inspections <br />Dear Mr. Gorham: <br />Ron Thompson <br />Mine Manager <br />Enclosed are copies of the First Quarter 2011 Pond Inspection Reports for Lorencito <br />Mine conducted to comply with Rule 4.05-9(17). All embankments were sound; no <br />discharges occurred during the quarter. <br />Please contact me if you have any questions. <br />Sincerely, <br />G1/(