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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 />09 September 2011 <br />Murari Shrestha, P.E. <br />Western Fuels Association, Inc. <br />1100 W 116 Ave. <br />Westminster, CO 80234 <br />Re: Permit Application Number C- 2010 -089 — New Horizon North Mine <br />Preliminary Adequacy Review No. 2 <br />Dear Mr. Shrestha, <br />The Division issued the first Preliminary Adequacy Review for the New Horizon Mine in three <br />parts: in December 2010, January 2011, and February 2011. Western Fuels submitted a <br />response to the PAR on June 2, 2011. The Division has now completed its review of the <br />response package. Our comments are provided, below. I apologize for the delay in our issuing <br />this second adequacy review. <br />2.03 — LEGAL, FINANCIAL, COMPLIANCE AND RELATED INFORMATION <br />1. Response accepted. <br />2.03.4 - Identification of Interests <br />1. 2.03.4(2) — Applicant, resident agent, payment of AML reclamation fee <br />a) and b) Response accepted. <br />2. 2.03.4(3) — Ownership and control of the applicant <br />a) and b) Response accepted. <br />3: 2.03.4(4) — Coal mining operations owned or controlled by applicant or owners /controllers <br />a) and b) Response accepted. <br />4. 2.03.4(5) — Updates to 2.03.4(1) thru 2.03.4(4) <br />Response accepted. <br />5. 2.03.4(6) — Owners, leaseholders, purchasers of record <br />a), b) and c) Response accepted. <br />d) According to 2.03.4(6)(c) and the Meehan lease provided in Attachment 2.03.6 -1, it <br />appears that WFC does not have legal right of entry. WFC has an option agreement to <br />Office of <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 />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />