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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 />October 28, 2011 <br />Daniel Bear <br />Bear Coal Company <br />1326 War Emblem Lane <br />Rock Springs, WY 82901 <br />Re: Bear No. 3 Mine (Permit No. C- 1981 -033) <br />Surety Increase (SI -1), Issuance Notification <br />Dear Mr. Bear: <br />This letter is to notify you, as required by Rules 3.02.2(4)(c) and 2.07.4(3) of the Rules and <br />Regulations of the Colorado Mined Land Reclamation Board for Coal Mining, that the Division of <br />Reclamation, Mining and Safety's decision to approve Surety Increase No. 1 (SI -1) for the Bear No. 3 <br />Mine became final on October 24, 2011. No requests for an adjudicatory hearing on our proposed <br />decision were received by the Division. <br />Surety Increase No. 1 increased the reclamation liability at the Bear No. 3 Mine by $16,226.66, from <br />$130,391.00 to $146,617.66. The Division is in possession of two certificates of deposit amounting to <br />$160,000.00. If you choose to reduce or replace your existing bond, it must equal or exceed <br />$146,617.66. The Division suggests you provide a copy of this letter to your bonding company for <br />written evidence for approval to reduce your bond. <br />If you have questions or need additional information, please contact me. <br />Sincerely, <br />• <br />seph J. Dhfdash <br />Office of <br />Mined Land Reclamation <br />Environmental Protection Specialist <br />cc: Alysha Hernandez, DRMS <br />William Bear, Bowie Resources LLC <br />Jim Stover, J.E. Stover & Associates <br />c: /word2007/bear3 /SIl issuelets <br />STATE OF COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAF ETY <br />Office of <br />Denver • Grand function • Durango Active and Inactive Mines <br />