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Date of Request: September 30, 2011 <br />Permittee: Mountain Coal Company, LLC (MCC) <br />Permit Number: C -80 -007 <br />Permit Approval Date: July 31, 1981 <br />Mine Name: West Elk Mine <br />Bond Release Phase Requested: Phase II <br />Acreage: <br />MOUNTAIN COAL COMPANY, LLC <br />WEST ELK MINE <br />CDRMS FILE C -80 -007 <br />PHASE II BOND RELEASE APPLICATION <br />Mountain Coal Company, LLC West Elk Mine <br />2011 Phase II Bond Release <br />Current Permit Area: + 17,154.90 acres <br />Maximum Area Disturbed: + 599.45 acres <br />Area Sought for Release: + 67.6 acres <br />10 Bonding Company: St. Paul Fire and Marine Insurance Company <br />Bond Safeguard Insurance Company <br />Bond Number: St. Paul Fire and Marine Insurance Company: 400KF0887 <br />Bond Safeguard Insurance Company: 5010562 <br />Original Proiects' Bond Amount: Unknown <br />Amount of Bond Release Requested: To Be Determined <br />Total Bond Amount Currently Held: $15,000,000.00 <br />Current Actual Bond Liability Amount (as of TR-126. 08/05/11): $14,410,606.00 <br />The amount requested for release will be based on the amount determined to apply to the <br />reclamation of the drill holes, sites, and roads. This amount is being calculated under the <br />previously submitted Mountain Coal Company, LLC, West Elk Mine; Permit No. CO -80- <br />007; Request for Phase I Bond Release (dated May 21, 2011). When the bond amount <br />applicable to the reclamation is determined, MCC will request release of 85% of the <br />applicable bond amount in accordance with CDRMS Rule 3.03.1(2)(b). <br />Page 1 <br />