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MINE ENGINEERING <br />MINE RECLAMATION <br />September 29, 2011 <br />Dear Mr. Hernandez: <br />J. E. STOVER & ASSOCIATES, INC. <br />Daniel Hernandez <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St , Room 215 <br />Denver, CO 80203 <br />Re: New Elk Mine Permit C- 1981 -012 <br />Minor Revision No. 96 Drill Hole NE -16 -11 <br />2352 NORTH 7 STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />fteCeN <br />OCT 03 2011 <br />oivision of Reclamat' ton, <br />Mining and Safety <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />The DRMS' e-mail dated September 12, 2011 transmitted its adequacy response for the referenced minor <br />revision. On behalf of New Elk Coal Company (NECC) following are its responses to the DRMS' <br />comments and concerns. <br />1. DRMS - Please provide revised permit pages for the New Elk Mine permit to describe the <br />purpose, location and depth of this borehole (Rule 2.05.3(2)(b)). Please include in this description <br />the aerial extent of the proposed disturbance. Please discuss whether this activity will involve the <br />use of any mud pits; f so, please describe how much water may be used to conduct the drilling. <br />NECC - The purpose of the hole was hydrologic testing. The hole was located in a previously <br />disturbed area. No mud pit was required. See amended page 2.05 -5e. <br />2. DRMS - Please describe if the hole will be cased, and if so, how. As it appears that this hole may <br />be drilled in somewhat close proximity to the Purgatoire River, the hole may need to be cased in <br />such a manner so as to prevent impacts to surface and near - surface aquifers. <br />NECC - The 9 inch diameter hole will be cased to a depth of 40 feet utilizing 6 5/8" steel casing. <br />Because of the location in the valley drilling mud will need to be used in order to support the <br />gravel fill material and set the casing. For this a standalone mud tank. <br />3. DRMS - Will the surface water runoff from this proposed disturbance be directed to an approved <br />sedimentation pond? If not, will a small area exemption ("SAE") demonstration be needed to be <br />inserted into the permit (Rule 4.05.2(3)(a) and (b)(i))? <br />NECC - Yes, all runoff will flow into the approved sedimentation pond adjacent to the hole. <br />4. DRMS - Please commit to updating the permit with a future minor revision to include in the <br />permit the information described in Rule 2.04.6(3)(a)(iii). Please commit to providing in this <br />future MR copies of driller's logs, core logs, geophysical logs, etc that will be obtained in <br />conjunction with the drilling of this borehole. <br />