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MINE ENGINEERING <br />MINE RECLAMATION <br />May 16, 2011 <br />Ms. Johanna Cramer <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Rm 215 <br />Denver, CO 80203 <br />Re: Snowcap Coal Company, Inc. <br />Bond Release Application No. 7 (SL -7) <br />Bond Decrease <br />Permit No. C- 1981 -041 <br />Dear Ms. Cramer: <br />The DRMS's letter dated April 26, 2011, gave notification that the Division's approval of SL -7 <br />became final as of April 26, 2011. <br />Based on this information, enclosed is the surety rider from Liberty Mutual Insurance Company, <br />Bond No. 014 - 018 -026, decreasing Snowcap Coal Company's bond from $1,640,413.00 to <br />$1,005,256.00, effective May 4, 2011. Please return a copy of the accepted rider to: Snowcap <br />Coal Company, Inc., P.O. Box 1430, Palisade, CO 81526. <br />Please let me know if you have any questions. <br />Sincerely, <br />Tonya'K. Hammond <br />Owner's Representative <br />Enclosures <br />cc: Mike Boulay - DRMS GJ <br />SCC File <br />J. E. STOVER & ASSOCIATES, INC. <br />2352 N. 7 Street, Unit B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />RECEIVED <br />MAY 1 9 2011 <br />Division of Reclamation, <br />Mining and Sa <br />fety <br />