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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 />November 2, 2011 <br />Ron Thompson <br />New Elk Coal Company, LLC <br />122 W. First Street <br />Trinidad, CO 81082 <br />RE: Lorencito Canyon Mine, Permit C- 1996 -084 <br />2011 Third Quarter Pond Inspection Reports <br />Dear Mr. Thompson <br />The Division has completed its review of the above referenced report received on 4 October 2011. The Division finds the <br />2011 Third Quarter Pond Inspection Reports is in compliance of the following Rules: <br />Rule 4.05.9(17) — The ponds were inspected quarterly for appearance of structural weakness and other hazardous <br />conditions. None were observed. <br />If you have any questions, feel free to contact me. <br />Sincerely, <br />Zach Trujillo <br />Environmental Protection Specialist Intern <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 />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />