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715 HORIZON DR., STE 340 <br />GRAND JUNCTION, CO 81506 <br />USA <br />VOICE 970.242.4220 <br />www.agapito.com <br />July 8, 2011 <br />Dan Hernandez <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Subsidence <br />AGAPITO ASSOCIATES, INC. <br />Mining & Civil Engineers & Geologists <br />Re: New Elk Mine Permit C- 1981 -012 <br />Technical Revision No. 58 <br />Blue Seam Mine Plan <br />Dear Mr. Hernandez: <br />Description of Revision <br />Sub 1 2311 <br />Wog sod siisti <br />GOLDEN OFFICE <br />303.271.3750 <br />723 -01 T1 <br />The New Elk Mine is proposing to begin mining the Blue Seam. The Blue Seam has <br />been identified as a mineable metallurgical coal reserve. The reserve is located east and south of <br />the Bates Portals. Enclosed is an application for a technical revision to incorporate the Blue <br />Seam Mine Plan into the permit application package. <br />Mining in the Blue Seam will begin upon completion of the rock slopes from the Bates <br />Portal. Two sets of seven -entry east mains will advance about one mile to the permit boundary. <br />Mining will then turn south with seven -entry south mains paralleling the permit boundary. The <br />south mains are approximately two miles long. Panels will be developed to the west off of the <br />south mains Partial pillaring is performed in the panels that vary in length from about 2,000 to <br />3,000 feet (ft). A mine panel north of the east mains will be developed and pillared. A second <br />long panel will be developed to the south of the east mains as shown on Map 3. The Blue Seam <br />Mine Plan is shown on a separate view port on Map 3 since nearly the entire Blue Seam Mine <br />Plan is underlain by future workings in the Apache and Allen Seams. No secondary mining is <br />planned in any area where protection from subsidence of surface structures is required. <br />Surface structures will be protected from subsidence by leaving solid coal pillars or not <br />performing secondary mining, as appropriate. No mining will take place within 150 ft of the <br />seam -level projection of any gas well. A buffer zone will be created on either side of gas <br />pipelines by projecting the gas pipe centerline to the seam level at a vertical offset angle of 10 <br />degrees ( °). No secondary mining will be performed within this buffer zone. See Exhibit 24— <br />Subsidence Control, Monitoring, and Mitigation Plan for additional details. <br />GEOENGINEERING • MINING ENGINEERING • CIVIL ENGINEERING <br />