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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 />August 1, 2011 <br />Mr. Kent Gorham <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: New Elk Mine (Permit No. C- 1981 -012) o l <br />2011 Coal Exploration Notice of Intent (NOI -X- 2011 - 232 -$i <br />Additional Holes NE -15 -11 and NE -16 -11 <br />Dear Mr. Gorham: <br />AGAPITO ASSOCIATES, INC. <br />Mining & Civil Engineers & Geologists <br />AUG Q 2 -"" <br />ociamali on, <br />QIv and SateW <br />min .Ing <br />GOLDEN OFFICE <br />303.271.3750 <br />723 -01 T1 <br />With this letter, New Elk Coal Company (NECC) is submitting a request for permission to <br />drill two additional holes in the 2011 Notice of Intent for Coal Exploration. The two holes <br />numbered NE -15 -11 and NE -16 -11 will be drilled to an approximate depth of 125 feet (ft) and <br />1,300 ft, respectively. <br />The drill rig is currently conducting exploration in the Bosque del Oso area. Access in the <br />wildlife area is limited to drilling in the months of June, July and August only. The drilling <br />contractor schedule is such that one more exploration hole can be accomplished within the Bosque <br />del Oso in August. Hole NE -16 -11 is located within the Boque del Oso. <br />NE -15 -11 is located on the rail right -of -way east of Pond 7 within the permit boundary. A <br />modified Table 1 from the amended NOI attachment is included below. The estimated increase in <br />bonding cost to reclaim the pads and plug the holes is $7,878. A revised drill hole location map, <br />amended NOI attachment, and minor revision application is attached. There are no permit page <br />modifications associated with the minor revision application. <br />Please feel free to contact me with any questions. <br />SP/hlw <br />cc: Ron Thompson, NECC <br />Enclosures: Minor revision application <br />2011 Drill Hole Location Map (revised 8/1/2011) <br />2011 Amended Notice of Intent application <br />Sincerely, <br />Susan Patton, PE. <br />Senior Associate <br />GEOENGINEERING • MINING ENGINEERING • CIVIL ENGINEERING <br />