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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 />July 6, 2011 <br />Mr. Jerry Nettleton <br />Twentymile Coal Company, LLC <br />29515 Routt County Road #27 <br />Oak Creek, CO 80467 <br />RE: Foidel Creek Mine (Permit C- 1982 -056) <br />Bond Adjustment and Notice for an Informal Conference based on 2010 Midterm Review <br />Dear Mr. Nettleton, <br />During the 2010 Midterm Review and in accordance with Rule 3.02.2(4), the Colorado Division of <br />Reclamation, Mining, and Safety (CDRMS) reviewed the amount of reclamation bond required for the <br />Foidel Creek Mine Permit No. C- 1982 -056 (see Item 24 of the November 3, 2010 Midterm Review). <br />Based on the Division's estimate for the 2010 Midterm Review the Twentymile Coal Company's <br />(TCC) bond for permit C -1982 -056 is not sufficient to cover the reclamation costs in the event of <br />forfeiture. <br />Through Minor Revision No. 251 (MR -251) approved on June 20, 2011, TCC adequately addressed all <br />2010 Midterm adequacy questions including Item 24. However, due to the utilization of a Minor <br />Revision to address adequacy items, the notification of an opportunity for an informal conference per <br />Rule 3.02.2(4)(a) was not provided to TCC. By this letter, the Division is providing notice of the <br />proposed bond adjustment and an opportunity for an informal conference concerning the bond <br />adjustment pursuant to Rule 3.02.2(4)(a). An informal conference may be used to set specific actions <br />and schedules necessary to resolve any discrepancy between the bond currently held, and the amount <br />required to ensure reclamation. <br />The Division would appreciate a response to this opportunity for aminfonnal conferenc in-30 - <br />days of the date of this letter. <br />If you have any questions feel free to contact me. (303) 866 -3567 ext 8134 <br />Sincerely, <br />Jason M <br />Environmental Protection Specialist <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of Office of <br />Denver • Grand Junction • Durango Active and inactive Mines <br />