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OXBOW MINING, LLC <br />October 3, 2011 <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorado 81434 USA Tel (970)929 -5122 Fax <br />(970)929 -5177 <br />Mr. Brock Bowles <br />Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Permit C- 1981 -022, Oxbow Mining, LLC. <br />2011 Annual Subsidence Report <br />Dear Mr. Bowles: <br />RECEIVED <br />OCT 0 6 2011 <br />Division or Reclamation, <br />Mining and Safety <br />This subsidence monitoring report is submitted as required by CDRMS Permit C -1981 -022, PAP Section <br />2.05.6, page 2.05 -104. <br />Summary — 2011 Subsidence Survey Results <br />Subsidence surveys were conducted during June and September 2011. Subsidence inspections indicated <br />that 1) minimal signs of recent subsidence was apparent and inconsequential and 2) no new mass <br />movement of existing features were noted. <br />Sanborn Creek Mine <br />Twice per year, typically June and October, Oxbow Mining LLC (OMLLC) is required to visually inspect <br />the pre- existing mass movement features located within the permit area in the vicinity of the Sanborn <br />Creek Mine Particular attention is to be focused upon the landslide located on the east valley slope of <br />Coal Gulch, the landslide features located within the lower, unnamed drainage located between the <br />Sanborn Creek and Coal Gulch drainages, and the landslide located on the west valley slope of upper <br />Hawksnest Creek drainage. If significant new mass - movement features are noted, they are to be brought <br />to the attention of the Division. No new features were observed during 2011. <br />Mining in the Sanborn Creek Mine was completed in March 2003. During the initial years of the mine, a <br />visual subsidence - monitoring program had become part of the routine monitoring of Springs 1 through <br />11. Springs 1 through 6 are reached from the BLM/ U. S. Forest Service road located in the Coal Gulch <br />drainage. During trips to these springs from April to October, the higher elevations of the permit area for <br />the Sanborn Creek Mine and the Sanborn East Tract were visually inspected for mass movement features, <br />with particular attention focused on the landslides in Coal Gulch and Hawksnest Creek. Springs 7 <br />through 11 are located along old Highway 133 in the lower elevations of the permit area for the Sanborn <br />Creek Mine and the Sanborn East Tract. During monthly monitoring the lower elevations were visually <br />inspected for mass movement features, with particular attention focused on the landslides in Coal Gulch <br />• Page 1 <br />Discussion <br />Background Information <br />